Estimated reading time: 6 minutes
Key Takeaways
- Refinancing Potential: Canadian homeowners can refinance up to 90% of their property’s value, with a cap of $2 million.
- Rental Expansion: The program supports the conversion or addition of up to four rental units including basement apartments, in-law suites, or laneway homes.
- Major Lender Participation: Leading banks like BMO, RBC, and National Bank are already on board, with more expected to join.
- Smaller Lenders Involved: Credit unions such as Coast Capital are offering opportunities, ensuring a broader range of choices for homeowners.
- Positive Housing Impact: This initiative not only enhances property values but also helps alleviate the housing crunch by expanding rental supply.
Table of contents
Canadian homeowners now have an exciting opportunity with a new federal program launched on January 15. This secondary suite refinancing initiative, overseen by the Canada Mortgage and Housing Corporation (CMHC) and supported by the Government of Canada, is designed to help owners unlock additional rental potential from their homes.
Growing Availability at Major Lenders
Major financial institutions such as Bank of Montreal (BMO), Royal Bank of Canada (RBC), and National Bank are already welcoming applicants. Homeowners are encouraged to reach out to their mortgage specialists to:
- Discuss eligibility
- Define property goals
- Initiate the application process
Other major banks continue to review and align their guidelines to join this promising initiative soon.
Options With Smaller Lenders
The program isn’t limited to the large banks. Smaller lenders, including well-regarded credit unions like Coast Capital, are also actively offering refinancing options. Homeowners looking for a more personalised service should:
- Connect directly with their mortgage advisors
- Seek up-to-date program details
Next Steps for Homeowners
While some details of the program are still being finalised, interested homeowners are urged to:
- Contact their lender to ascertain current availability
- Consult with mortgage professionals to understand how the refinancing might benefit their specific situation
This careful approach is essential to ensure that everyone can make the most of the program as soon as it reaches full implementation.
Moving Forward
The ongoing rollout of this refinancing initiative is set to offer expanding options for homeowners across Canada. As more banks and lenders finalise their participation, Canadians will have increased choices for enhancing property values and generating rental income.
It’s a development that not only promises improved housing supply but also stands as a testament to innovative approaches in tackling the housing crunch across the province.
“The future is bright when property owners can unlock both value and opportunity through smart refinancing solutions.”
Frequently Asked Questions
Q: Who is eligible for the secondary suite refinancing program?
A: Homeowners with properties potentially capable of accommodating rental units, who meet the lender’s criteria, are eligible to apply.
Q: How many rental units can be added under the program?
A: Applicants can refinance their property to create up to four rental units, including options like basement apartments, in-law suites, or laneway homes.
Q: Which lenders are currently participating?
A: Major banks such as BMO, RBC, National Bank and select smaller lenders like Coast Capital are currently offering the refinancing. More lenders are expected to join as guidelines are finalised.
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