Effective January 15, 2025, you will once again be able to get an insured refinance against your home beyond the current rules of 80% that have been in effect for a decade.

You will be able to get an insured refinance against your home for up to 90% as long as the proceeds of the refinance are used to build extra housing on your lot. This is a part of the government strategy to build extra units so that people have places to rent given the shortage of housing in the country.

Here are some of the brief details we know so far:

  • Permitted purpose: The refinance funds must be used to construct one or more secondary suites (ie. basement suite, above-garage suite, etc)
  • Maximum loan-to-value: You can borrow up to 90% of the new improved value of the home.
  • Maximum property value: $2 million
  • Maximum amortization: 30 years
  • Maximum units in the home: 4
  • Borrower qualifications:
    – The applicant must already own their property.
    – The borrower or their kin must presently occupy a unit on the property.
    – The new unit(s) cannot be rented out on a short-term basis.
    – The new units must meet municipal zoning requirements and be fully self-contained.

We expect more details to come out by December in terms of what documents will be needed to verify the cost of the renovation work being done as well as verifying the future value of the home.

If you need more information regarding mortgages or if you need any advice on your personal situation please contact our office at 604-556-3893 or email at alex.kotai@ymscanada.ca.

For more information on our mortgage products and your preferred Abbotsford Mortgage Broker please visit our website at www.ymscanada.ca.