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New actions announced to encourage building of secondary suites in Canada

New actions announced to encourage building of secondary suites in Canada

cited from a CTV Article 

Federal Government Introduces New Housing Measures to Boost Affordability and Supply

The Canadian government has unveiled a series of housing-focused initiatives aimed at increasing home availability and affordability. These measures are designed to support homeowners, encourage the use of vacant land, and repurpose underutilized federal properties for housing.

1. Incentives for Adding Secondary Suites

Homeowners looking to create rental units, such as basement or garage suites, can now refinance their mortgage more easily. This program allows borrowers to access up to 90% of their home's value, including the value of the planned secondary suite. The refinanced mortgage can be amortized over 30 years, making it more affordable to finance these additions.

Additionally, the mortgage insurance home price limit has been increased to $2 million for such refinances, ensuring accessibility across Canada’s diverse housing markets.

2. Consultations on Taxing Vacant Land

The government is initiating consultations on implementing taxes for vacant land. The aim is to encourage landowners to develop properties rather than leaving them idle, contributing to increased housing supply. This measure invites feedback from provincial, territorial, and municipal governments to ensure its effectiveness.

3. Unlocking Federal Properties for Housing

Fourteen underused federal properties in cities like Ottawa, Quebec City, Cape Breton, and St. John’s have been added to the Canada Public Land Bank. This initiative now includes 70 properties in total, aligned with the Public Lands for Homes Plan. The goal is to transform these spaces into housing, helping to meet the country's growing demand for affordable options.

Why It Matters

These initiatives reflect the federal government’s commitment to tackling the housing crisis. By empowering homeowners to create rental units, discouraging underutilized land, and repurposing federal spaces, these measures aim to make housing more accessible and affordable for Canadians.

As Finance Minister Chrystia Freeland stated, “We must use every possible tool to build more homes and make housing affordable for every generation of Canadians.”

This multi-pronged approach holds promise for creating stronger communities and expanding the housing supply at a crucial time.

Hunter Crowther

CTVNews.ca National Digital Producer

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