Remarks by the Deputy Prime Minister on making it easier for homeowners to build secondary suites
Speech
December 10, 2024 - Ottawa, ON
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Yesterday I announced the government will table the Fall Economic Statement on Monday, December 16th in the House of Commons. Our government is focused on building four million new homes, making life more affordable and growing the economy, and creating more good-paying jobs.
We’re doing this in a fiscally responsible way. Canada’s net debt to GDP and debt to GDP ratios are the lowest in the G7.
In next week’s Fall Economic Statement you will see that the government is maintaining its fiscal anchor, specifically reducing the federal debt as a share of the economy over the medium term. I expect the debt to GDP ratio we projected in the spring budget for the fiscal year 2023-24 will be met.
Regarding the Canadian economy, we have good news on inflation. In October, inflation was at two per cent. That means inflation has been within the target range for the past ten months, or the entire year. Interest rates are coming down. Canada was the first G7 country to cut interest rates four times. We are making solid progress but much remains to be done. We are making the investments Canadians need.
That brings me to the announcement that Sean [Sean Fraser, Minister of Housing, Infrastructure and Communities] and I are here to make today—something that will be detailed on Monday.
We are making it easier for homeowners to add secondary suites, rental apartments, in-law suites, laneway homes. Today we are announcing we are doubling the loan limit for the Canada Secondary Suite Loan Program to $80,000. This program offers 15-year loan terms at just two per cent. That makes it easier for homeowners to add a secondary suite. It’s going to be administered by CMHC and it will launch in early 2025.
It builds on existing measures in place allowing homeowners to refinance their mortgage to help cover the cost of adding a secondary suite.
Borrowers can access up to 90 per cent of the post-renovation home value up to $2 million amortized over a period of up to 30 years and that starts January 15, 2025. Homeowners will be able to use both the loan program and will have access to mortgage refinancing. Together these two measures will make it easier for homeowners to build a secondary suite.
This is about increasing housing supply. It is about gentle density, and it is about giving Canadian homeowners the tools themselves to help build more of the homes Canadians need.
Thank you.
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