In a bid to tackle Canada’s persistent housing crisis, the federal government announced new measures to make it easier for homeowners to add secondary suites to their properties, while unveiling the most significant mortgage reforms in decades. The initiatives, part of the forthcoming 2024 Fall Economic Statement, aim to bolster rental housing supply, ease homeownership barriers, and provide financial relief for Canadians across generations.
Deputy Prime Minister and Finance Minister Chrystia Freeland, alongside Housing Minister Sean Fraser, revealed that the Canada Secondary Suite Loan Program will see its maximum loan limit doubled to $80,000 when it launches in early 2025. This adjustment is designed to enable homeowners to convert underutilized spaces—such as basements and garages—into rental units, helping to increase housing density in urban areas.
The loans will be available at a low interest rate of 2% over 15 years, making secondary suite construction more accessible. Homeowners will also be able to refinance their insured mortgages, accessing up to 90% of the post-renovation value of their properties to fund secondary suite additions. Mortgage amortizations for these refinanced loans will extend up to 30 years, providing further financial flexibility.
This dual approach—low-interest loans and insured mortgage refinancing—is aimed at significantly boosting Canada’s rental stock while leveraging existing housing infrastructure. “By providing low-cost loans for homeowners to create new homes on their existing property, we’re going to create more spaces for folks to live, stay, and rent across Canada,” Fraser said.
In addition to addressing rental housing, the federal government is lowering barriers to homeownership. Beginning December 15, 2024, Canadians purchasing homes priced between $1 million and $1.5 million will benefit from reduced down payment requirements as the insured mortgage price cap rises to $1.5 million. First-time homebuyers and purchasers of newly constructed homes will also gain access to 30-year amortizations, easing monthly payment burdens.
These mortgage reforms, described by officials as the boldest in a generation, are intended to help more Canadians afford homes in an era of escalating property prices. “Our government already has the most ambitious housing plan in Canadian history—a plan to build four million homes,” Freeland said. “We are doing this in a way that maintains Canada’s G7 leadership in fiscal responsibility.”
The measures announced on Monday build on previous government initiatives, including the Multigenerational Home Renovation Tax Credit, which provides up to $7,500 for constructing secondary suites for seniors or adults with disabilities. The government is also continuing its broader investment in housing construction through targeted funding and regulatory changes aimed at accelerating new builds.
The 2024 Fall Economic Statement, set to be released on December 16, is expected to detail further investments to address Canada’s housing supply crisis. Analysts predict additional measures to streamline construction processes and support affordability will be included, underscoring the government’s focus on making housing more attainable for Canadians at every stage of life.
With these initiatives, Ottawa aims to tackle Canada’s housing challenges from multiple angles—supporting renters, easing access to homeownership, and spurring construction in a market still struggling to meet growing demand. Whether these reforms can meaningfully bridge the gap between housing supply and affordability, however, remains a key question for policymakers and Canadians alike.
