To unlock new housing supply, the federal Budget 2024 proposes a new Secondary Suite Loan Program to enable homeowners to access up to $40,000 in low-interest loans to add secondary suites to their homes.
The federal government said this new loan program will help increase density to make the most of available space in communities across the country, whether used to bring in a new tenant or build a space for family members to live nearby.
In a press release, the government said 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, create new opportunities for homeowners to add suites and increase density, the press release says.
“New rental suites would provide more homes for Canadians and could provide an important source of income for seniors continuing to age at home. New suites can also be purpose-built to be barrier-free, to accommodate physical impairments of an aging family member or a child with a disability,” it states.
Budget 2024 will also announce targeted changes to mortgage insurance rules to encourage densification and enable homeowners to add more units to their homes. “Many Canadians, such as retirees who own their homes, or younger families who want their parents to move in to live close by, might want to add a unit to their home,” said Chrystia Freeland, the Deputy Prime Minister and Minister of Finance.