New Mortgage Rules in 2025: Unlock Opportunities with Secondary Suites
The Canadian government’s upcoming changes to mortgage insurance rules in January 2025 will bring exciting opportunities for real estate investors and homeowners in Toronto and the GTA. Whether you’re planning to add a laneway suite, garden suite, major renovation, or a new basement apartment, these new rules will allow you to refinance up to 90% of your home’s value. This provides access to capital with minimal upfront costs, enabling you to take advantage of today’s favorable financing conditions.
This opportunity comes at an ideal time, as the Bank of Canada’s recent 0.50% rate cut on December 11, 2024, has not only made mortgages and financing more affordable but also boosted consumer confidence in renovations and new home builds. With interest rates at their lowest in over a year, many homeowners and investors are seizing the chance to expand or enhance their properties.
Why This Matters for Real Estate Investors
For investors, this is a game-changer. With the ability to add up to four self-contained units on a single property, including the existing one, you can significantly increase rental income. This is particularly attractive given the growing demand for rental units in Toronto and the GTA. With interest rates stabilizing and long-term rental housing in short supply, now is the ideal time to expand your portfolio by leveraging the equity in your current properties.
Homeowners Can Benefit Too
Homeowners who want to make the most of their property’s potential will also benefit. By adding a secondary suite, whether it’s a basement apartment, laneway home, or garden suite, you’ll create a long-term rental income stream to offset rising mortgage costs. With a 30-year amortization option, the financial strain is minimized, making this an attractive solution for those looking to supplement their income.
Build for the Future
Beyond financial gains, this initiative aligns with broader efforts to increase urban housing supply. The government’s restrictions on short-term rentals mean these new suites will contribute to easing the housing crisis while offering stable, long-term rental income. This change comes at a crucial time as both Toronto and the GTA continue to grow, creating excellent opportunities for both seasoned investors and homeowners looking to take advantage of new incentives.
Learn More About Your Secondary Suite Options
Novacon Construction is a custom home builder and home addition contractor in Toronto. We specialize in building laneway and garden suites as well as multi-generational homes. We are an award winning design build contractor and help design and build the perfect home for your needs. Contact us today to learn more and to schedule a free consultation.
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