Across Canada, too many properties are underused or vacant-from unused basements, to empty office towers, to vacant lots-and could be used to build more homes. By making it easier for homeowners to add secondary suites to their existing homes, and unlocking vacant lands and underused federal properties for housing, we can build the supply of homes Canada needs to make housing more affordable for every generation.
Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, alongside the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement, and the Honourable Terry Beech, Minister of Citizens' Services, announced significant progress in the federal government's work to unlock more land in our communities for housing.
First, the Deputy Prime Minister and Minister of Finance announced technical guidance for lenders and insurers to offer mortgage refinancing for homeowners looking to add secondary suites to their homes, starting January 15, 2025. These mortgage insurance reforms, as well as the forthcoming Canada Secondary Suite Loan Program, will make it easier for homeowners to convert an unused basement into a rental apartment or a garage into a laneway home to increase density in our communities. Secondary suites can help homeowners pay their mortgage with a new rental apartment and bring families closer together. For example, a retired couple may wish to downsize into a new laneway home or in-law suite, so their children could raise their young family in the property's existing home. More specifically, these changes will:
- Allow refinancing of insured mortgages for secondary suites, to let homeowners access the equity in their homes to finance the construction of secondary suites. Borrowers will be able to access financing of up to 90 per cent of the home value, including the value added by the secondary suite(s), and amortize the refinanced mortgage over a period of 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 this refinancing in all housing markets across the country.
Second, the Deputy Prime Minister and Minister of Finance launched consultations on the taxation of vacant land. The federal government is seeking feedback from provinces, territories, and municipalities that are interested in implementing their own vacant land taxes. By taxing vacant lands, landowners would be incentivized to maximize the full potential of their land-building homes.
Third, the Minister of Public Services and Procurement announced that an additional 14 underused federal properties have been identified as suitable for building new homes. With these additional federal properties added to the Canada Public Land Bank, a total of 70 federal properties have now been unlocked and are available to homebuilders as of today. This is part of the federal government's work-as Canada's largest landowner-to turn unused and underused federal properties into 250,000 new homes.
The federal government is delivering on its ambitious plan to build 4 million homes by using all tools at its disposal. The actions announced today are about maximizing the use of available land in our communities-turning unused basements, empty lots, and underused federal offices into homes-to build a country where everyone has access to a home they can afford.
