The federal government introduced a number of housing-related measures on Tuesday. These include measures for homeowners who want to add a second suite, taxes on vacant land, and measures to replace underutilized federal land with housing.
The first step would change the way lenders and insurance companies offer mortgage refinancing to homeowners looking to convert unused basements or garages into rental suites.
Homeowners will be able to refinance their current mortgage to build a second suite, giving the borrower access to up to 90 percent of the home’s value, including the value of the additional suite. Borrowers can amortize their refinanced mortgages over 30 years.
The federal government also announced that it will increase the home price limit for mortgage insurance for refinances to build a second suite to $2 million, making it more affordable for homeowners in all housing markets across Canada. He said refinancing will be available.
“We must use every tool at our disposal to build more housing and make it affordable for Canadians of all generations,” Deputy Prime Minister and Minister of Finance Chrystia Freeland said in a press release. Ta.
The second measure announced is the start of a consultation on taxing vacant land, which the federal government claims will encourage landlords to build housing.
“The federal government is seeking input from states, territories and municipalities interested in introducing their own vacant land tax,” the press release states.
Finally, Jean-Yves Duclos, Minister of Public Services and Procurement, announced that 14 underutilized federal lands have been determined to be suitable for new housing construction and will be added to the Public Land Bank of Canada. It was announced that the total number has reached 70. The buildings are located in cities across Canada. , including Ottawa, Quebec City, Cape Breton, N.S., and St. John’s, N.J.
Duclos said affordable housing options are out of reach for “too many Canadians” and that the addition of these buildings “is being brought into public ownership at a pace and scale not seen in generations.” It is part of an effort to “open up land for housing.”
“We continue to add more properties to our land bank and are delivering on our promise to deliver the outcomes outlined in Budget 2024 to support our ambitious new residential public land plan. By doing so, we can build stronger communities and more affordable housing across the country. ”
