New Mortgage Rule Changes: How Secondary Suites Can Make Homeownership Easier (And How Husmates Can Help)

What’s New?

As of January 15, 2025, homeowners will be able to apply for mortgage insurance with the flexibility to include secondary suites, such as basement apartments or in-law suites.

The benefit? You can rent out these additional units, providing a steady stream of income to help cover mortgage payments and other costs. This change is aimed at making homeownership more affordable for everyone, particularly first-time buyers and co-owners looking to add additional dwelling units to their properties. Whether you’re downsizing, looking to age in place and bring co-owners on, or looking to add a unit to meet the needs of a group co-ownership arrangement, this rule change offers greater flexibility.

Parameters as provided by the Department of Finance:

Will apply to all borrowers seeking to access mortgage insurance in Canada to add more units (secondary suites). These borrowers must satisfy the following requirements:

• Already own their properties
• The borrower or a close relative are occupying one of the current units
• Intend to construct additional units
• The additional unit(s) must not be used as a short-term rental

Refinancing: Insured refinancing will be allowed for the purpose of building additional unit(s).

Legal units: The new units must be fully self-contained units (e.g., basement suites with separate entrances, laneway homes) and meet municipal zoning requirements.

Number of units: Maximum of four dwelling units including the existing unit.

Maximum Property Value Limit: The “as improved” value of the eligible residential property against which the loan is secured must be less than $2 million.

Maximum Loan-to-Value limit: Up to 90 per cent of the property value, including the value added by the secondary suite(s), in combination with any other outstanding loans secured by the property.

Maximum amortization: 30 years. Additional financing must not exceed the project costs.

How Husmates Can Help

At Husmates.com, we’re dedicated to making homeownership more accessible through co-ownership. Our platform helps match you with the right people to co-own a property, whether they’re friends, family, or new acquaintances. With the recent mortgage rule changes, the benefits of co-ownership just got even better.

Still unsure about co-ownership and its benefits? Check out a great read from Maclean’s: "Why More Canadians Are Co-Owning Homes With Strangers"—click here for the full article.