As Canada continues to face a housing supply crisis, the federal government is rolling out ambitious measures to increase housing availability, support homeowners, and make housing more affordable for every generation. Among the highlights of the 2024 Fall Economic Statement are enhanced programs to help homeowners build secondary suites and sweeping reforms to mortgage rules that aim to unlock homeownership for more Canadians.
Here’s a detailed breakdown of the initiatives unveiled in the 2024 Fall Economic Statement.
Table of Contents
Doubling the Loan Limit for Secondary Suites
The Canada Secondary Suite Loan Program is set to launch in early 2025 with an increased loan limit of $80,000—double the previous cap of $40,000. This change will enable more homeowners to access low-interest financing for creating secondary suites, such as:
- Converting basements into rental apartments.
- Building laneway homes from unused garages.
This move not only provides homeowners with an affordable way to increase their home’s utility but also contributes to addressing Canada’s rental housing shortage by adding more affordable units to the market.
Key Details
- Loans will feature 15-year terms at a low interest rate of 2%, making secondary suite construction more accessible.
- Homeowners can use the program alongside new mortgage refinancing options to fund projects.
Mortgage Refinancing for Secondary Suites
Starting January 15, 2025, homeowners will have access to a new mortgage refinancing option to help cover the costs of adding secondary suites. This initiative offers significant financial flexibility by allowing:
- Refinancing of up to 90% of the post-renovation value of the home (up to $2 million).
- Mortgage amortization periods of up to 30 years, reducing monthly repayment burdens.
These changes aim to unlock the equity in homes for secondary suite construction, providing a financial lifeline to homeowners while addressing Canada’s rental housing needs.
Bold Mortgage Reforms to Unlock Homeownership
In addition to supporting secondary suites, the federal government has announced historic reforms to mortgage rules, effective December 15, 2024, designed to make homeownership more accessible for first-time buyers and those purchasing new builds.
Highlights of the Reforms
- Lower Down Payments for Higher-Value Homes
- The insured mortgage cap is increasing from $1 million to $1.5 million, reflecting today’s housing market realities.
- This adjustment will allow Canadians to purchase homes in this price range with a down payment of less than 20%.
- Expanding 30-Year Amortizations
- The availability of 30-year amortizations is expanding to include:
- All first-time homebuyers.
- Buyers of new builds (including condos).
- Longer amortization periods reduce monthly mortgage payments, making it easier for more Canadians to buy homes.
- The availability of 30-year amortizations is expanding to include:
Additional Supports for Homeowners
The federal government is also building on earlier initiatives to support housing accessibility and multigenerational living:
- Multigenerational Home Renovation Tax Credit
- Launched in 2023, this credit provides up to $7,500 to help families construct secondary suites for seniors or adults with disabilities.
- Incentives for New Builds
- Expanding 30-year amortizations for new builds complements other measures encouraging housing construction to address Canada’s housing shortage.
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The Bigger Picture: Canada’s Housing Plan
The measures outlined in the 2024 Fall Economic Statement are part of the government’s broader, ambitious housing strategy:
- Aiming to build 4 million new homes.
- Investing in affordability, economic growth, and job creation while maintaining fiscal responsibility as a G7 leader.
The Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, emphasized the government’s commitment:
“Our government already has the most ambitious housing plan in Canadian history—a plan to build 4 million homes. In the forthcoming Fall Economic Statement, we’re making further investments to put more money in Canadians’ pockets, grow the economy, and create more good-paying jobs.”
Final Thoughts
By doubling support for secondary suites and implementing bold mortgage reforms, the government is tackling the housing crisis on multiple fronts. These initiatives aim to increase housing supply, reduce financial barriers for homeowners and buyers, and pave the way for a more affordable housing market across Canada.
Homeowners and prospective buyers should prepare to take advantage of these programs starting in early 2025, as Canada takes bold steps to create a future where housing is affordable and accessible for all.
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