Deputy Prime Minister Announces New Actions To Build Secondary Suites And Unlock Vacant Lands
On October 8, 2024, the Deputy Prime Minister and Minister of Finance Chrystia Freeland, alongside other government officials made a number of new action announcements. These initiatives are designed to unlock underused properties and make it easier for homeowners to add secondary suites to their homes, ultimately contributing to the federal goal of building 4 million homes.
1. 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:
Access to Equity: Homeowners can access up to 90% of their home’s value, including the value added by the new secondary suite(s).
Longer Amortization Period: The refinanced mortgage can be amortized over a period of up to 30 years.
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.
This reform aims to promote greater housing density, support homeowners with additional rental income, and enhance community living options.
2. Consultations on Taxation of Vacant Land
The federal government is launching consultations regarding the taxation of vacant land. This initiative seeks feedback from provinces, territories, and municipalities interested in implementing their own vacant land taxes. The goal is to encourage landowners to utilize their properties effectively, ultimately leading to more housing developments.
3. Unlocking Underused Federal Properties
An additional 14 federal properties have been identified as suitable for housing development, bringing the total to 70 underused federal properties available through the Canada Public Land Bank. This initiative is part of the federal government’s commitment to unlocking land for new housing, aiming to support the construction of 250,000 new homes.
The federal government is committed to its goal of building 4 million homes by leveraging all available resources and strategies. These recent announcements represent significant steps towards maximizing land use in our communities and addressing the housing affordability crisis.