Take Advantage of Mortgage Refinancing for Legal Secondary Units in 2025

The Canadian government is making it easier than ever for homeowners to create secondary suites on their properties. Starting in 2025, a new program allows homeowners to refinance up to 90% of their property’s value, a significant increase from the previous cap of 80%. Announced on October 8, 2024, this initiative is designed to help homeowners unlock their equity to build or legalize secondary suites, addressing the housing shortage while enhancing their financial security.

What Does the New Program Offer?

This program provides homeowners with greater financial flexibility to fund renovations or new construction projects aimed at creating secondary suites, such as:

• Basement Apartments

• Garden Suites

• Laneway Homes

  
  

The increased refinancing limit means homeowners can access a larger portion of their home’s equity without needing alternative, costlier financing options.

Example of How It Works

Let’s break it down with an example:

Imagine your home is valued at $800,000. Under the previous rules, you could refinance up to 80%, or $640,000. With the new program, you can refinance up to 90%, or $720,000. This extra $80,000 could fund the design, construction, and legalization of a high-quality secondary suite.

Steps to Access the Program

1. Determine Your Eligibility

   • Check your home’s current value and equity.

   • Ensure your mortgage lender participates in this program.

     
     

2. Plan Your Secondary Suite Project

   • Decide whether you’re building a new suite or upgrading an existing one to meet legal standards.

   • Work with a professional to create a budget and timeline.

     
     

3. Apply for Refinancing

   • Contact your lender to start the refinancing process.

   • Be prepared with documentation outlining your renovation plans.

     
     

4. Build and Legalize Your Suite

   • Obtain the necessary permits.

   • Hire experts to ensure your suite complies with local codes and regulations.

How We Can Help

Navigating refinancing and construction can be overwhelming. That’s where Mezza Studio comes in. We offer comprehensive services to simplify the process, including:

• Design Consultation: Tailored designs that maximize space and functionality, and minimize costs.

• Permit Management: Assistance with zoning, building codes, and permit applications.

• Legalization Support: Ensuring your suite meets all local requirements.

  
  

Ready to Get Started?

With the new 2025 refinancing program, there’s no better time to transform your property and increase its value. Contact us today for a free consultation and learn how we can help you take advantage of this opportunity.

Let’s make your home work harder for you—unlock its potential and help solve Canada’s housing challenges at the same time!