If you’re considering making improvements to your property by adding secondary suites such as laneway homes or basement suites, there’s significant news that could impact your financing options. The insured mortgage landscape is evolving, allowing for more flexible refinance solutions that may be beneficial to homeowners like you. Here’s what you need to know:
New Refinance Opportunities for Secondary Suites Under the resurgence of insured mortgages for refinances, homeowners now have the opportunity to refinance up to 90% of the property value. This can be inclusive of the value when the suite construction is complete. The aim? To support homeowners in creating more housing units, helping meet housing needs in growing communities.
Key Highlights: 
Maximum Property Value: The combined value of the property, including all improvements, must not exceed $2,000,000.
Amortization Period: Refinancing can be extended up to a 30-year amortization.
Unit Limit: Properties are allowed up to a maximum of four units.
Eligibility Requirements To qualify for this type of refinance, you must already own the home and ensure that you or an immediate family member occupies one of the units. Additionally, the newly constructed units must be rented out, but note that they cannot be used for short-term rentals. Importantly, these new units must meet municipal requirements and be fully self-contained.
What This Means for Homeowners This opportunity can be a game-changer for homeowners looking to create additional income streams or enhance the value of their property. With the ability to finance up to 90% of the value, homeowners may find this an attractive option for projects that might otherwise require more expensive or complex financing.
Points to Keep in Mind:
Premiums: The increased premiums associated with these insured refinances have yet to be disclosed, so it’s important to keep an eye on this as it may impact overall costs.
Long-Term Potential: Adding secondary suites not only boosts your property’s value but can also provide sustainable rental income.
This resurgence in insured mortgage options for refinances offers exciting potential for homeowners eager to expand their living space and income potential responsibly. Stay tuned for more details as we learn about the premium structures and further implications of these changes.
At Cultivate + Evolve Financial, we’re here to guide you through the evolving mortgage landscape and help you make informed decisions that align with your goals. Contact us to explore if this refinance opportunity is right for you!
