October 8, 2024

The Canadian government is stepping up its efforts to tackle the housing crisis with big announcements that could impact homeowners, homebuyers, and investors. On October 8, 2024, Deputy Prime Minister Chrystia Freeland rolled out a series of new initiatives aimed at increasing the housing supply across the country. These measures include making it easier to build secondary suites and unlocking vacant land for residential development. The goal? To make homeownership more attainable, especially for first-time buyers and those looking for more flexible living arrangements.

We’ll break down what was announced, who stands to benefit, and how these changes could shape the housing market in the future.

What Was Announced?

The government’s latest push to address the housing shortage includes two key actions:

1. Support for Building Secondary Suites: Secondary suites are self-contained living units within a larger home, like basement apartments or laneway houses. These can be a game-changer for homeowners looking to add rental income or create extra space for family members. The government plans to ease zoning restrictions and offer financial incentives to make building these suites more accessible for homeowners. Plus, new mortgage refinancing options will be available to those who plan to build secondary suites starting January 15, 2025.
2. Unlocking Vacant Land: Another major initiative is aimed at turning underused or vacant land into much-needed housing. The government is partnering with municipalities to repurpose these lands for development, which could help alleviate housing shortages, particularly in urban areas where land availability is limited.

Who Does This Impact?

These new actions could benefit many people, from first-time homebuyers and homeowners to real estate investors and renters. Here’s a closer look:

• First-Time Homebuyers: If you’re struggling to find an affordable home in today’s competitive market, these new initiatives could open up more options. Secondary suites can provide more affordable housing solutions, or if you’re buying a property with rental potential, you could use that extra income to help with mortgage payments. Check out our first-time homebuyer solutions to learn more about financing options.

• Current Homeowners: If you’ve been thinking about adding a secondary suite to your home, now might be the time. With zoning restrictions loosening and financial incentives available, you could potentially increase your home’s value while generating rental income. Whether you want to create space for family members or tenants, these government measures could help make it happen. Take a look at our home equity loan options for funding your project.

• Real Estate Investors and Builders: If you’re an investor looking to buy your second home or a builder, these initiatives present ample opportunity. With more vacant land being made available for development, you’ll have greater access to prime locations for new builds. This could be especially beneficial in areas where demand for housing is high, but available land is scarce.

• Renters and Tenants: As more secondary suites are built, renters could see more options in the rental market. This could ease some of the pressure in hot rental markets, making it easier to find affordable housing.

How Will These Actions Affect the Market?

Here’s how these government initiatives could shake things up in the housing market:

• More Homes on the Market: The overall housing supply could increase by turning vacant land into residential developments and supporting secondary suites. This could help stabilize home prices in high-demand areas, making it easier for buyers to get into the market.
• More Rental Units: With easier access to build secondary suites, homeowners could turn unused spaces into income-generating rental units. This will help homeowners and increase the rental stock, potentially providing relief for tenants in tight rental markets. If you’re considering using rental income to support your mortgage, explore our refinancing options.
• Long-Term Affordability: These measures won’t solve the housing shortage overnight, but they are a step in the right direction toward making housing more affordable for Canadians in the long run.

As these changes roll out, staying informed and understanding how they might impact you is critical. At 8Twelve Mortgage, we’re here to help you navigate the shifting landscape, whether you’re buying your first home, looking to refinance, or considering an investment property. Reach out to us today or explore our mortgage solutions to find out how you can make the most of these new opportunities.