Secondary Suite Programs
Refinance Equity Program
Lenders will allow you to refinance up to 90% of the 'Current Value' of your home.
Mortgage Refinancing for Secondary Suites: Starting January 15, 2025, homeowners will have the opportunity to refinance their insured mortgages to finance the construction of secondary suites. Key details include:
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Access to Equity: Homeowners can access up to 90% of their home’s value, including the value added by the new secondary suite(s). (Typically you can only access 80% of the value of your home when you refinance your mortgage.)
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The borrower or a close relative are occupying one of the current units.
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New units must not be used as a short-term rental.
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Legal Units: The new units must be fully self-contained units (e.g., basement suites with separate entrances, laneway homes) and meet municipal zoning requirements.
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Number of Units: Maximum of four dwelling units including the existing unit.
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The “as improved” value of the eligible residential property against which the loan is secured must be less than $2 million.
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Additional financing must not exceed the project costs.
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Longer Amortization Period: The refinanced mortgage can be amortized over a period of up to 30 years. (Previously you could only finance to 25yrs on an insured mortgage.)
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Increased Price Limit: The mortgage insurance home price limit will increase to $2 million for those refinancing to build a secondary suite, ensuring broader access across various housing markets.
Refinance Plus Improvements Program
Lenders will allow you to refinance the 'Improved Future Value' of your home to access more funds.
For Example: If your home is current valued at $300,000 and you intend to complete a renovation of $50,000, your new improved value would be $350,000. Rather than financing with a mortgage of $270,000 (90% of current value), you can refinance with a mortgage of $315,000 (90% of the improved value). This will assist you with covering the cost of the new improvement.
• Allows up to a 20% increase of the Purchase Price to a maximum of $40,000.
• Owner occupied properties only.
• Completion period of 120 days to 240 days is available to complete the improvements. Depends on the lender.
• A list of all improvements along with contractor cost estimates and quotes are required to support the increased value
• Full Appraisal required for all Refinance Plus Improvements applications (“As Is” & “As Improved” values to be included in appraisal report)
• The initial advance of funds to the customer will be up to 90% of the “as-improved” value of the property minus the cost of the improvement. The solicitor will hold the balance of the funds “in trust” pending completion of the improvements to the property. Funds are to be returned to the lender if improvements are not completed within the allotted time.
• Release of funds held in trust will occur upon receiving an inspection report completed by an appraiser confirming that the improvements have been completed as per the original quote/estimate provided at time of application.
Secondary Suite Incentive Program
50% Rebate on the cost of renovations for a secondary Suite - Up to a max of $40,000
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The Secondary Suite Incentive Program (SSIP) will help homeowners create affordable housing in their communities. The program will provide money to help homeowners create a new secondary suite on their property to be rented out for below market value.
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Homeowners who qualify will receive up to 50% of the cost of renovations, up to a maximum of $40,000. The program will provide a rebate in the form of a forgivable loan—a loan that does not need to be repaid if the homeowner follows the terms of the program.
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For the loan to be forgiven, the new unit must be located on the same property where the homeowner lives and must be rented out at below market rates, set by BC Housing, for at least five years.
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Applications will be approved on a first come, first served basis until annual funding is used up.