“We have said if you are building a secondary suite, adding it to your home, whether it’s a basement apartment, a garden suite, laneway housing, you can refinance your mortgage and have a 30-year amortization. You can access up to 90 % of the value of your home including the value added by the secondary suite and in the insured market you will be eligible for these terms for a value of up to $2 million, including the value that the secondary suite adds.
Those changes are going to be effective January 15th. I know I talked to a lot of Canadian families who are keen to add that space to their home, have a family member be able to live with them. This is going to allow them to do that and more generally add that gentle density, add that supply for all of us.”
Remarks by the Deputy Prime Minister, October 10, 2024.
As property values in the Greater Toronto Area (GTA) continue to climb, more homeowners are looking for creative ways to unlock the potential of their homes to build wealth. With over two decades in the financial services industry—spanning roles as a financial advisor, real estate agent, and mortgage agent—I’ve had the privilege of guiding many clients toward innovative solutions for financial growth. One such solution that’s gaining traction is the Secondary Suite Refinance Program.
What is the Secondary Suite Refinance Program?
This program allows homeowners to leverage the equity in their property to finance or refinance the development of a legal secondary suite. Whether it’s a basement apartment or an additional unit within your property, a secondary suite can be a powerful investment, generating rental income, increasing property value, and offering additional housing options in a high-demand market.
Why Consider a Secondary Suite?
Secondary suites aren’t just about adding square footage; they represent a sustainable path to wealth building, one that aligns with many of my clients’ financial goals. By adding a legal suite, homeowners can enjoy:
Increased Monthly Cash Flow – The rental income from a secondary suite can cover a significant portion of monthly mortgage payments or other expenses.
Enhanced Property Value – Properties with legal secondary suites often have a higher market value.
Future Flexibility – A secondary suite can offer options for multi-generational living or additional living space for family and friends.
How Can Refinancing Help?
With the Secondary Suite Refinance Program, homeowners can tap into their home’s existing equity to finance the construction or renovation of a secondary suite. This financing option provides access to funds without taking on additional consumer debt, which is often at higher interest rates. Refinancing for a secondary suite is a strategic move that can lead to long-term financial benefits and aligns well with my approach to helping clients build wealth through real estate.
My Approach to Secondary Suite Financing
At Dominion Lending Centres/Expert Financial, I take a personalized approach to every client. Having worked in financial services since 1998, I understand that a one-size-fits-all approach doesn’t work when it comes to wealth-building. I collaborate with homeowners to assess their financial health and future goals, offering tailored solutions that are aligned with their unique needs.
A secondary suite could be the right strategy to diversify your income and grow your wealth. I’m here to help you explore how to maximize the return on your biggest asset—your home.