Homeowners in Ottawa Eligible for Secondary Suite Incentive Program
In an effort to “unlock new housing supply,” Ottawa is introducing a program in Budget 2024 that enables homeowners to access up to $40,000 in low-interest loans to add a secondary suite to their homes.
Known as the Canada Secondary Suite Loan Program, this initiative will be managed by the Canada Mortgage and Housing Corporation, as announced by the federal government on April 14.
“Many Canadians, such as retirees who own their homes, or younger families who want their parents to live close by, may wish to add a unit to their home,” said Finance Minister Chrystia Freeland in a statement.
“Through our Housing Accelerator Fund, we have revised zoning to allow for this, and now, homeowners will soon have access to up to $40,000 in low-cost loans to facilitate the addition of secondary suites.”
Ottawa will also be updating mortgage regulations to allow homeowners to add more units, added Ms. Freeland. This move aims to increase housing “density” in communities nationwide.
The federal government will seek feedback on proposed regulatory changes related to refinancing, maximum loan amounts, and home prices, according to a press release from the finance department. Consultations will also cover other mortgage insurance rules for homeowners adding extra units.
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These housing initiatives represent the minority government’s latest effort to address affordability concerns as it faces mounting pressure from the Pierre Poilievre Conservatives on cost-of-living issues.
It remains uncertain whether the Liberal housing plan will impact the party’s standing with Canadian voters.
The Conservatives have maintained a significant lead in public opinion polls for months as they continue to highlight the Liberals’ role in the current cost of living challenges faced by Canadians.
The Tories have consistently criticized the Liberals’ funding announcements, arguing that injecting more money into “government bureaucracy” will not resolve the housing crisis.
Housing Minister Sean Fraser acknowledges the Conservatives’ success in drawing attention to housing issues but believes their solutions are inadequate.
“I believe it’s risky when politicians exploit the legitimate anxieties of people without offering solutions,” he told The Canadian Press. “To me, it indicates a greater interest in gaining political power than in actually assisting those who are struggling.”
Mr. Poilievre argues that the government should step aside and allow developers to increase home construction.
His proposed housing plan focuses on requiring cities to boost home construction by 15 percent annually to maintain their standard infrastructure funding or risk losing funding. Those exceeding the target would be eligible for bonuses.
The Canadian Press contributed to this report.
