On Oct. 8, CAN GVT launched insured mortgage refinancing product.
CAN GVT issued technical guidance with information on new mortgage insurance rule changes to enable homeowners to convert spaces to secondary suites.
Secondary Suite Refinancing
Municipal zoning reforms in Canada’s major cities create opportunities for homeowners to add additional suites and increase density to provide more homes for Canadians.
Reforms allow refinancing of insured mortgages for secondary suites, to let homeowners access equity in their homes to finance construction of secondary suites.
Borrowers will be able to access financing of up to 90 per cent of the home value.
Including value added by secondary suite, and amortize over period up to 30 years.
Increase the mortgage insurance home price limit to $2 million for those refinancing to build a secondary suite, to ensure homeowners can access refinancing in all markets.
Measure applies to borrowers seeking mortgage insurance to add secondary suites.
These borrowers must already own their properties with either the borrower or a close relative occupying one of the current units, and intend to construct additional units.
The additional unit(s) to be constructed must not be used as a short-term rental.
New units must be fully self-contained units (basement suites with separate entrances, laneway homes) and meet municipal zoning requirements; maximum of four units.
These reforms are in addition to the upcoming Secondary Suite Loan Program.
Oct. 2024 CAN GVT Mortgage Reforms
On Oct. 10, 2024, CAN GVT reported mortgage reforms to make homes affordable.
Starting Jan. 15, 2025, homeowners will be able to refinance their insured mortgages to access equity in their homes and help pay for the construction of a secondary suite.
Effective Dec. 15, 2024, the price cap for insured mortgages will increase to $1.5mn.
Also 30 year amortizations will be expanded to first-time buyers/buyers of new builds.
Regulators
CAN GVT
Entity Types
Bank; MG Orig; Thrift
Reference
PR, 10/10/2024; PR, SP, 10/8/2024
Functions
Actuarial and Valuation; Financial; Legal; Product Administration; Reinsurance; Treasury
