New actions announced to encourage building of secondary suites, more homes in Canada

CTV National News: New rental suite incentive The federal government is making it easier for homeowners to borrow more money if they want to build a rental suite on their property.

The federal government introduced a number of measures related to housing on Tuesday, which include measures for homeowners wanting to add a secondary suite, taxing vacant land and building homes in place of underused federal properties.

The first action is changes to how lenders and insurance companies can offer mortgage refinancing for homeowners looking to convert an unused basement or garage into a rental suite.

Homeowners can now refinance their current mortgage and construct a secondary suite, with borrowers able to access up to 90 per cent of the home's value, including the value of the extra suite. The borrower will be able to amortize the refinanced mortgage over a period of 30 years.

The federal government also said it is increasing the mortgage insurance home price limit to $2 million for those refinancing to build a secondary suite, saying this will ensure homeowners can access their refinancing in all housing markets across Canada.

"We must use every possible tool to build more homes and make housing affordable for every generation of Canadians," Deputy Prime Minister and Finance Minister Chrystia Freeland said in a press release.

The second measure announced was the launch of consultations on the taxation of vacant land, a measure which the federal government argues will incentivize landowners to build homes.

"The federal government is seeking feedback from provinces, territories, and municipalities that are interested in implementing their own vacant land taxes," the press release said.

Finally, Public Services and Procurement Minister Jean-Yves Duclos announced 14 underused federal properties have been deemed suitable for building new homes, bringing the number of total federal properties added to the Canada Public Land Bank to 70. The buildings are located in cities across Canada, including Ottawa, Quebec City, Cape Breton, N.S., and St. John's, N.L.

Duclos says affordable housing options are out of reach for "far too many Canadians" and that adding these buildings is part of an effort "to unlock public lands for housing at a pace and scale not seen in generations."

"We are delivering on our promise to continue to add more properties to the land bank and meet the deliverables outlined in Budget 2024 to support a new, ambitious Public Lands for Homes Plan. In doing so, we can build strong communities and more affordable housing across the country."