The Trudeau government wants to increase the supply of affordable housing by involving owners. New measures could encourage them to transform their unused basement or garage into rental housing.
Published at 02:38
Updated at 11:00 a.m.
Adding a secondary suite was previously expensive for a homeowner due to renovation and borrowing costs.
Starting January 15, 2025, homeowners will be able to access the refinancing of their mortgage loan, insured or not, up to 90% of the value of their home and their renovations. They can even amortize it over 30 years and insure this new loan for up to $2 million.
To have access to this measure, Canadians must already be owners, live in the property in question and agree not to make a short-term rental with the added accessory dwelling unit.
Accessory dwelling units must be fully self-contained with kitchen and bathroom, have their own entrance and meet municipal zoning requirements.
The new accommodation will accommodate grandparents and children, or provide rental income which will allow owners to repay part of their mortgage loan.
“The Canadian government wants to stimulate housing construction without waiting for each entrepreneur to have the perfect project,” analyzes John Fucale, senior vice-president at Multi-Prêts Hypothèques.
“This gives the individual the opportunity to find another source of income to pay their mortgage in cities where prices are very high, while creating additional housing construction that does not currently exist in the market. »
What will the cities’ response be?
However, the majority of cities in Quebec do not yet allow this type of development, recalls the Association of Construction and Housing Professionals of Quebec (APCHQ).
Some municipalities are in the process of reviewing their zoning regulations, while a few already authorize the construction of accessory dwelling units.
Sainte-Catherine and Victoriaville authorize all types of accessory dwellings, whether integrated into the main building or detached like backyard cottages. The cities of Quebec, Granby and Laval have also modified their regulations.
“Even in cities where it is accessible, there are still a lot of restrictions. We do not allow the addition of a secondary building or an expansion of the property,” maintains David Goulet, director of the economic department of the APCHQ.
“Will cities adopt zoning that will allow this type of new housing? We don’t know, so the important thing is to put pressure on the municipalities so that it is adopted. »
There are still a lot of questions, believes John Fucale of Multi-Prêts Hypothèques.
“Yes, on the financing side, the federal government has a plan to support these projects; now, how will each city react? How are they going to issue building permits for all these properties?
“That said, housing is such a concern for the government that it is certain that the zoning change will be favorable in the majority of cities. We are far from the density of the majority of cities in Quebec,” he says.