Mortgage Insurance Rule Changes to Enable Homeowners to Add Secondary Suites
Many homeowners have extra space they may want to convert into rental suites, such as an unused basement, or a garage that could be converted into a laneway home. Historically, the cost of renovating, combined with municipal red tape, has made this both difficult and expensive. Recent municipal zoning reforms in Canada’s major cities, made possible through Housing Accelerator Fund agreements, are creating new opportunities for homeowners to add additional suites and increase density. New rental suites would provide more homes for Canadians and could provide an important source of income for seniors continuing to age at home. In Budget 2024, the federal government announced its intention to make targeted changes to mortgage insurance rules to encourage densification and enable homeowners to add more units to their homes. Today, the government is releasing details for lenders and insurers to offer this new insured mortgage refinancing product, effective January ...