The Federal Government has introduced a new mortgage initiative designed to address the ongoing housing affordability crisis. This program launched on Wednesday, January 15th, to help support homeowners in constructing secondary suites on their properties, offering a unique opportunity for builders to contribute to the expansion of the housing supply while helping homeowners navigate the financial challenges of rising mortgage costs. With over 70% of mortgages set to renew between 2024 and 2026, many homeowners are facing significantly higher interest rates. This new mortgage program presents a valuable solution that allows homeowners to offset those increased costs by adding secondary suites to their properties. In turn, this helps meet the urgent need for more housing.
Key Benefits of the Program:
Contact [email protected] or 778.893.0525 to discuss how this program can benefit you!
Key Benefits of the Program:
- Higher Loan-to-Value (LTV): Homeowners can borrow up to 90% of their property’s value, which includes the added value of any new secondary suite(s). This allows builders to maximize project financing and complete renovations or new construction more easily.
- Increased Capacity for Units: Homeowners can add up to four self-contained units on their properties. This opens up more opportunities for builders to expand their scope of work and contribute significantly to the housing supply.
- Extended Amortization: The program offers a maximum 30-year amortization for refinancing, making monthly payments more manageable for homeowners. This flexibility can be an attractive selling point for clients considering secondary suite construction.
- Self-Contained Unit Requirements: Each new suite must include a private entrance, kitchen, and bathroom. This ensures that the new units meet municipal zoning regulations, including those for basement suites, laneway homes, and other similar housing types. Builders will play a key role in ensuring these units are compliant and functional.
- Financial Support for Homeowners: Builders can help homeowners access up to 50% of the cost of renovations, with a forgivable loan of up to $40,000. This can significantly reduce upfront costs, making it easier for homeowners to move forward with suite construction.
- Long-Term Rental Focus: To support long-term housing, the new units must be rented out below market rates, set by BC Housing, for at least five years. This ensures that the housing remains affordable for renters and creates a stable demand for additional suites.
- Cost Control: The financing available through the program is tied directly to the actual cost of the project, ensuring that homeowners and builders remain within budget.
Contact [email protected] or 778.893.0525 to discuss how this program can benefit you!
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