As a top-awarded Edmonton realtor passionate about helping homeowners maximize their property investments, I’m excited to share game-changing news for Canadian homeowners. Starting January 15, 2025, new mortgage insurance rule changes will make it easier to add secondary suites to your property. These changes, announced by the Department of Finance Canada, offer incredible opportunities to increase home value, generate rental income, and enhance housing options for the community.
What Are the New Rules?
The federal government’s updated mortgage insurance rules are designed to encourage densification and empower homeowners to convert underutilized spaces into legal rental units. This could mean transforming your basement, converting your garage into a laneway home, or adding a new self-contained suite—all while easing the financial burden with insured refinancing.
Key Parameters for Homeowners:
Here’s what you need to know about qualifying for this new insured mortgage refinancing program:
Eligible Borrowers:
Must already own the property.
Must occupy one of the current units or have a close relative living there.
Must plan to build fully self-contained units (e.g., basement suites with separate entrances or laneway homes).
Restrictions on Use:
New units cannot be used as short-term rentals; they must serve as long-term housing solutions.
Property and Loan Guidelines:
Maximum property value, after improvements, must be under $2 million.
Loan-to-value ratio can be up to 90% of the property’s improved value.
Financing cannot exceed project costs.
Maximum amortization is 30 years.
Effective Date:
These rules apply to applications submitted to mortgage insurers on or after January 15, 2025.
Why Does This Matter for Edmonton Homeowners?
Edmonton, with its growing population and need for more housing options, is an ideal city to take advantage of these changes. Adding a secondary suite to your property can:
Boost Property Value: Converting underutilized spaces into rentable units significantly increases your home’s market value.
Generate Rental Income: Create a steady income stream by renting out your new suite.
Support Aging in Place: For seniors, secondary suites provide a source of income while allowing them to stay in their homes.
Increase Housing Options: Help address the housing shortage in Edmonton by providing affordable rental units.
How Can I Help?
As a trusted Edmonton real estate expert, I’m here to guide you through the opportunities these new rules provide. Whether you’re considering a secondary suite to maximize your property’s potential or looking for a home with multi-unit options, I’m ready to assist you every step of the way.
Plan Ahead for January 15, 2025
With these new rules taking effect soon, now is the perfect time to explore your options. Get in touch with me to learn how you can:
Evaluate the feasibility of adding a secondary suite to your home.
Navigate the municipal zoning requirements.
Maximize your refinancing options under these new rules.
Make Your Home Work Harder for You
Don’t miss out on this unique opportunity to unlock the full potential of your home. Contact me today for personalized advice on leveraging these new mortgage insurance rules to enhance your property’s value and income potential.
Together, we can transform your property into a powerful investment for the future.