“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.

When the 2024 Canadian mortgage rule changes come into effect in December, there will be some significant shifts in how home buyers—particularly first-time buyers—navigate the market.

The new changes include:

Increased CMHC Insured Mortgage Cap: The insured mortgage cap is increasing from $1 million to $1.5 million, allowing buyers in high-priced markets like the GTA to put down smaller amounts for homes valued up to $1.5 million. For example, under current rules, a $1.2 million home would require a 20% down payment of $240,000. Under the new rules, with CMHC insurance, a buyer could qualify with a down payment as low as 5% on the first $500,000 and 10% on the remaining $700,000, resulting in a down payment of $95,000 instead of $240,000

Extended 30-Year Amortization.: First-time home buyers can now opt for a 30-year amortization instead of the typical 25 years. This will lower their monthly mortgage payments, giving them more flexibility in managing their monthly cash flow, even though they will pay more in interest over the life of the loan. For a $960,000 mortgage, this change could reduce the monthly payment by hundreds of dollars, making homeownership more attainable

When advising a new home buyer, I focus on the bigger financial picture to ensure they are not just buying a home but also laying the groundwork for future wealth. Here’s how the process would look:

Assessing Budget and Goals: Together, we review your overall financial situation, including income, debts, and future financial goals. My experience as a financial advisor allows me to help you look beyond the immediate mortgage and consider how buying this home will fit into your long-term wealth-building strategy.

Navigating the New Rules: I’ll explain how the 2024 changes will benefit you, especially if you’re looking to buy a home in a high-priced area like Mississauga. The lower down payment options mean you can enter the market sooner and preserve more of your liquid capital for other investments.

Building Wealth Beyond the Mortgage: With my background in real estate, I’ll also help you evaluate your home purchase from an investment perspective. We’ll consider how the extended amortization and reduced down payment can free up cash for other opportunities—whether that’s investing in rental properties, saving for retirement, or building an emergency fund.

Tailored Mortgage Solutions: As a mortgage broker at Dominion Lending Centres, I have access to a variety of lenders. I’ll help you find the most competitive rates and terms that align with your financial goals. The extended amortization means you’ll have more monthly flexibility, and we can discuss ways to accelerate payments over time if your income increases.

Conclusion: Positioning for Success

With the new mortgage rules, there are significant opportunities for first-time home buyers to enter the market with lower initial costs and more manageable payments. My role is to ensure you understand these changes and how they can fit into a broader plan for financial security and wealth building. We will use these new pathways to help you secure a home while keeping your long-term financial health at the forefront.

You may contact me to discuss how we can tailor a plan specific to your needs!