Canada’s Public Housing Policy

Canada’s New Public Housing Strategy: What It Means for Nanaimo Buyers and Homeowners

Canada has introduced a national housing plan aimed at addressing the housing shortage and improving affordability, particularly for first-time buyers. The strategy’s goal is ambitious: to double residential construction and build up to 500,000 new homes per year over the next decade. For homebuyers and owners on Vancouver Island, BC, this could mark a turning point in housing availability, affordability, and development opportunities.

Build Canada Homes (BCH)

A key element of the plan is the creation of a new federal agency, Build Canada Homes (BCH). Its role is to:

  • Act as a public developer, building affordable housing at scale using federal and public land.

  • Provide $25 billion in debt financing and $1 billion in equity financing to support the growth of Canadian modular and prefabricated housing industries.

  • Offer long-term land leases and support innovative building methods that reduce construction time, cost, and environmental impact.

BCH will function independently from the Canada Mortgage and Housing Corporation (CMHC), allowing it to focus on rapid delivery of affordable housing, while also supporting job creation in construction and skilled trades.

Supporting Policies: Public Lands and the Housing Accelerator Fund

The federal government is also unlocking hundreds of surplus federal properties through the Public Lands for Homes Plan. These lands will be repurposed for affordable housing development, often under long-term leases to keep costs down. The goal is to build 250,000 units on public land by 2031.

In addition, the Housing Accelerator Fund continues to support municipalities—like Nanaimo—that are streamlining their zoning and permitting processes to encourage more housing development. The fund is expected to help generate up to 750,000 new homes nationally over the next decade.

What This Means for Nanaimo

More housing supply could create better buying opportunities in the Nanaimo area, especially for first-time homebuyers who have struggled with rising prices and tight inventory. Prefabricated and modular home construction could become more common, reducing build times and improving affordability in local developments.

With increased federal investment in skilled trades and materials like mass timber and softwood lumber, Vancouver Island’s forestry and construction sectors may also benefit from renewed growth and employment.

Builders and developers in Nanaimo could also access low-cost financing, land leases, and BCH partnership opportunities to bring more housing to market faster—particularly mid-density and multi-unit projects that align with municipal zoning reforms.

Considerations for Buyers and Homeowners

While the policy direction is promising, actual housing starts across Canada are still well below what’s needed to meet demand. Federal and provincial coordination, along with private-sector participation, will be critical to turning plans into results.

For buyers, especially those in Nanaimo looking to enter the market, the introduction of more affordable housing could ease price pressure over time. For current homeowners, now may be an ideal time to evaluate refinancing options while interest rates stabilize and before new supply potentially affects market dynamics.

Key Takeaways for Mortgage Clients

  • First-time buyers should stay informed about new developments supported by BCH or municipal initiatives that could expand local housing options.

  • Homeowners may benefit from refinancing ahead of broader market shifts as new inventory begins to roll out.

  • Builders and investors should monitor opportunities tied to federal land leases and modular housing financing.

Conclusion

Canada’s new housing strategy is a significant step toward restoring balance in the housing market. In cities like Nanaimo, where affordability and supply have become growing concerns, this federal initiative could open doors for new buyers, expand construction capacity, and improve housing affordability over time.

As these changes take shape, mortgage professionals play a vital role in helping clients make well-timed, informed decisions—whether buying, refinancing, or investing in the local housing market.

What Rate Cuts Mean to Borrowers

CMLS Aveo 40 Year Mortgage

 

 

 

 

 

Bank of Canada Maintains Benchmark Interest Rate at 2.75%

Bank of Canada Maintains Benchmark Interest Rate at 2.75% in June 2025

Bank of Canada Maintains Benchmark Interest Rate at 2.75%, a position it has maintained since March and April of this year. This decision reflects the Bank’s cautious approach amid ongoing economic uncertainties, particularly regarding U.S. trade policy’s potential impacts on the Canadian economy.

Economic Performance and Outlook

Canada’s economy showed resilience in the first quarter, growing at a solid 2.2%. Key drivers included a boost from exports to the U.S. and inventory accumulation, while domestic demand remained relatively flat. Strong spending on machinery and equipment helped sustain business investment, even as consumer confidence dipped sharply, leading to a slowdown in consumption.

The housing market experienced a decline, mainly due to a significant drop in resale activity, and government spending was subdued. The labour market also faced challenges, with unemployment rising to 6.9%, especially in sectors heavily tied to trade. Looking ahead, the Bank anticipates a weaker second quarter, with expenditures remaining subdued as export and inventory gains diminish.

Inflation Trends

Inflation has decreased to 1.7% in April, aided by the federal consumer carbon tax, which shaved off 0.6 percentage points from the Consumer Price Index. Excluding taxes, inflation slightly exceeded expectations at 2.3%. Core inflation measures have also edged upward, signaling persistent inflationary pressures. The Bank is monitoring these indicators closely, especially as households and businesses anticipate tariff-related price increases.

Global Economic Context

Globally, economic resilience has been tested by trade tensions. U.S. demand remains solid but has been offset by higher imports, impacting GDP growth. U.S. inflation is gradually declining but remains above 2%, with tariffs influencing prices still to be felt. Meanwhile, Europe benefits from export strength, and China’s slowdown continues amid fading fiscal stimulus and higher tariffs curbing exports to the U.S.

Financial markets have largely recovered from April’s turmoil, with volatility easing but remaining sensitive to U.S. trade policy signals. Oil prices have stayed relatively stable, hovering near April levels.

The Bank’s Rationale

Given the high level of uncertainty surrounding U.S. tariffs and their effects, the Bank opted to hold interest rates steady, aiming to gather more information on trade developments and their economic impact. The Governing Council highlighted the need for caution, balancing downward pressures from a weaker economy against upward pressures from rising costs.

Looking Ahead

Uncertainty remains elevated, as negotiations between the U.S. and China continue, and additional trade actions are possible. The Bank emphasized close monitoring of key risks—including the actual impact of tariffs on exports, investment, employment, and inflation expectations.

Final Notes

The Bank’s Governing Council reaffirmed its commitment to supporting economic growth while maintaining price stability amidst global upheaval: “We are focused on ensuring that Canadians continue to have confidence in price stability… We will support economic growth while ensuring inflation remains well controlled.”

The next rate decision is scheduled for July 9, 2025. First National Financial will provide further insights following that announcement.

“While we understand the Bank of Canada’s choice to hold interest rates to combat inflation, today’s announcement comes as a disappointment to the thousands of British Columbian mortgage holders who are uncertain about their financial future.” Said Rebecca Casey, President of CMBA-BC. “Especially when affordability concerns are still on the rise, a rate cut would’ve gone a long way to ease some of the pressures facing Canadians.”

 

 

Blog Posts
Insured Mortgage Changes

BC Tenancy and First Time Buyers

Zoning Changes: City of Nanaimo Bill 44 Response

Maximizing Income vrs Using Business Write Offs

Mortgage News
BOC Cut = lower interest costs

CMLS Aveo 40 Year Mortgage

Bank of Canada Forecasts

What Rate Cuts Mean to Borrowers

 

 

First-Time Home Buyers 30-Year Insured Mortgage

Unlocking Homeownership: Canada’s New First-Time Home Buyers 30-Year Insured Mortgage 

As home prices continue to rise, it can feel nearly impossible for first-time buyers to break into the market. The 30-year insured mortgage is a game-changer for young Families, and first time buyers trying to purchase their first home, especially in cities where prices have skyrocketed. By reducing monthly payments, it can ease the financial strain and help buyers afford homes they might have once thought out of reach.

Mortgage payments are stretched over a longer period (30 years instead of the typical 25 years). This makes monthly payments more affordable by reducing the amount you have to pay each month. For many, this could significantly ease the financial pressure of homeownership.

However, as with any financial commitment, it’s important for potential homeowners to understand the trade-offs, particularly when it comes to paying more interest over time. For those who can manage the long-term plan, it offers a much-needed pathway to homeownership in today’s competitive market.

Insured Mortgage: Canadian Mortgage and Housing Corporation (CMHC), Sagen or Canada Guaranty offer mortgage insurance. This provides protection for the lender in case of default on the mortgage, which means they offer their best mortgage interest rates. The downside for the buyer? You’ll pay a slightly higher mortgage insurance premium than you would on a 25 year mortgage (.20% above a 25 year amortization mortgage) which is calculated on the mortgage amount, and is included in your total mortgage amount. A few extra costs, but the overall impact on affordability can be worth it.

Eligibility Criteria?

To take advantage of this program, you’ll need to meet a few basic criteria:

  • First-time buyer: You have never owned a home or haven’t owned a home in the past four years. Nor have you occupied a home as a principal place of residence you or your Spouse have owned in the last four years. You may qualify if you did own but recently experienced a breakdown of marriage/common-law partnership.
  • Stable income: You need to prove that your household income is sufficient to manage the new mortgage, credit needs to be strong with timely repayment of debts, and the lower the debt load the better.
  • Property cap: $1,500,000 maximum Purchase price

Benefits

  • The Unique Benefit of the extended amortization is that only one borrower on the mortgage needs to be a first-time buyer to qualify. That means a parent can be cosigning for first time buyer child (or vice versa).

  • Lower Monthly Payments: Stretching out your mortgage means you won’t have to pay as much every month. This could free up extra money for other priorities like childcare, education, or savings.

  • More Home for Your Money: With lower monthly payments, many first-time buyers can afford a larger or more desirable property than they could with a traditional mortgage term.

  • Stability and Peace of Mind: A 30-year term can provide longer-term financial stability. With a more affordable monthly payment, families may have a better chance of weathering financial challenges in the future.

Potential Drawbacks

  • Higher Total Interest: While monthly payments are lower, you’ll pay more interest over the life of the loan because repayment is extended over 30 years. For those who are able, paying off the mortgage faster can reduce the total interest paid.

  • Mortgage Insurance Premiums: To protect lenders, CMHC (or Sagen or Canada Guaranty) require that a mortgage insurance premium be paid by the buyer. While this helps the affordability of monthly payments, it adds to the overall cost.

  • Qualification Hurdles: While the program is designed to help, qualifying may still be challenging for some families due to strict qualification requirements and regional property caps.

What Does This Mean for Young Canadian Families?

What difference will the 30- year amortization make to the bottom line–payments, and buying power for those trying to get into the housing market? Let’s look at a couple of options, and consider households that don’t have any debt, and have some savings put away for their home purchase.

Example: buying a condo with a purchase price of $549,000

25-year amortization: Down payment $29,900 Default Insurance Premium: $20,764 Payment: $2896/month Estimated household income required: $125,000/yr

30-year amortization Down payment $29,900 Default Insurance Premium: $21,803 Payment: $2693/month, Estimated household income required $117,400/yr

Consider combined household income amount of $100,000/year:

Another way to look at things would be from qualification standpoint. Let’s assume a household income of $100,000. With the old rules of a maximum amortization of 25 years for insured mortgages, these first-time buyers could qualify for a maximum purchase price of approximately $430,000. With a 30-year amortization these first-time buyers can qualify for $453,000 purchase price. (Scenario considers condo purchase with taxes and strata fees estimated for illustration purposes).

Do you want to see what these changes can mean for you?

Give your Broker a call and we can answer any questions you may have.

 

Maximizing Income vs. Using Business Write-Offs: A Balancing Act for Self-Employed Mortgage Qualification

Maximizing Income vs. Using Business Write-Offs: A Balancing Act When Qualifying for a Mortgage

If you’re self-employed and planning to buy a home, refinance, or transfer your mortgage, balancing income and tax write-offs is crucial when tax season arrives. Your financial profile plays a significant role in mortgage qualification, and understanding how lenders assess self-employed income can make a big difference in determining how much you can borrow. In this article, we’ll explore how lenders evaluate self-employed income and how your net business income impacts your mortgage eligibility.

The Importance of Income When Qualifying for a Mortgage

Higher Income Equals a Larger Loan Amount

Lenders base their mortgage approval decisions largely on income. Simply put, the more you earn, the more you can borrow. A higher reported income increases your borrowing power and enhances your chances of getting approved for the loan amount you need.

A key factor in mortgage qualification is your Gross Debt Service Ratio (GDSR)—the percentage of your income that goes toward housing costs. Lenders typically require this ratio to be no more than 39% of your income. A lower GDSR indicates financial stability and makes you a more attractive borrower. For example, if you earn $100,000 per year compared to $50,000, you’re likely to qualify for a larger mortgage and a more expensive home.

Another important metric is your Total Debt Service Ratio (TDSR), which accounts for all your debt obligations, including housing costs, credit cards, and loans. Traditional lenders usually set a maximum TDSR of 44%. A higher debt load can reduce your borrowing capacity and make mortgage approval more challenging.

The Flip Side: Write-Offs and Mortgage Qualification

While maximizing income can help you qualify for a larger mortgage, using business tax write-offs—while beneficial for reducing tax liability—can have unintended consequences. Lenders assess net business income (after deductions), and excessive write-offs can lower your reported income, potentially impacting mortgage approval.

Business Write-Offs Lower Your Net Taxable Income

For business owners, freelancers, and self-employed individuals, tax write-offs are a great tool for minimizing taxes. However, deductions such as marketing, advertising, and other business expenses reduce net business income, which is the figure lenders use to assess mortgage eligibility.

For instance, if you earn $100,000 but claim $30,000 in write-offs, your net income is $70,000. Since lenders typically average two years of self-employed income, excessive deductions can lower your mortgage qualification amount.

Striking a Balance: Maximizing Income Without Sacrificing Write-Offs

So, how do you balance reducing taxes with qualifying for a mortgage? Here are some strategies:

1. Plan Ahead for Mortgage Qualification

If you plan to buy a home in the next two years, consult with a financial advisor, accountant, and mortgage broker now. A mortgage expert can help you understand how lenders assess your income, while your accountant can develop strategies to optimize your reported income for mortgage qualification. In some cases, paying higher taxes in the short term may improve your borrowing ability.

2. Work with Professionals

Tax planning is essential for self-employed individuals. Your accountant can advise on structuring expenses and income to balance tax savings with mortgage eligibility. Financial planners can assist with home savings strategies and guide you on investment withdrawals when preparing to buy. Need suggestions on who to work with, visit our resource page.

 

Conclusion

Maximizing your income is a proven way to boost mortgage qualification. However, if you rely heavily on business write-offs to reduce taxable income, you may face challenges securing the loan amount you need. Finding the right balance between tax efficiency and mortgage approval is key. By planning ahead and working with financial professionals, you can navigate these challenges and confidently prepare for homeownership.

Have questions? Contact Us—we’re here to help! Or click here to Apply Now.

 

Homebuyers Benefit From More Purchasing Power

Homebuyers Benefit From More Purchasing Power

 

1. Introduction of 30-Year Amortizations for Insured Mortgages

One of the most significant shifts this year is the introduction of 30-year amortizations for insured mortgages. This extension allows certain buyers to spread out their mortgage payments over 30 years instead of the previous 25-year maximum, increasing purchasing power. The 30 year option is in effect for all buyers purchasing new construction with less than 20% downpayment.  Effective December 15th, any first time buyers purchasing any home with an insured mortgage can benefit from the 30 year amortization.  This move aims to help Canadians qualify for larger loans while keeping their monthly payments more manageable, especially amid rising home prices and interest rates. These changes are designed to address affordability challenges. Homebuyers benefit from more purchasing power. Here’s a quick breakdown of the key changes: Homebuyers Benefit From More Purchasing Power and Homeowners Benefit From New Policies

For Insured Mortgage guidelines a first-time homebuyer must meet the following criteria:

-someone who has not owned a home in the past four years. This includes individuals who have never purchased a property or those who previously owned a home but have not done so within the last four years.

-Note: only one applicant needs to be a first time buyer to access the 30 year amortization

To qualify for certain first-time homebuyer programs, such as withdrawing from RRSP’s under the Home Buyers’ Plan (HBP), the individual must plan to live in the home as their primary residence.

2. Changes Insured Mortgage limit

Effective December 15, 2024 insured mortgages will be available up to a maximum purchase price of $1,500,000.00 ($1,499,999.99 to be exact). This is an increase from the previous limit of $1,000,000.00.  This will allow all buyers to have the option of purchasing with the minimum down payment, instead of requiring 20% on the purchase price. Minimum down payment for insured mortgages are 5% of the first $500,000 and 10% on the balance. For example, if you were buying for $1,500,000 before December 15th, the minimum down payment would be 20% of the purchase price, or $300,000. After December 15th you can buy with $125,000 down.

3. Changes to Home Buyers Plan  (RRSP)

Eligible first time home buyers can withdraw from their RRSP for a home purchase up to $60,000 (increased from $40,000). The money must be repaid to their RRSP over a 15 year period, (after a 5 year grace period) or else claimed as taxable income.

4. Property Transfer Tax Exemptions for First Time Buyers

Eligible first time buyers can purchase new construction without Property Transfer Tax up to $1,100,000.

On resale properties, buyers can enjoy full exemption up to $500,000 and a new partial exemption on houses priced between $500,000-$835,000.

5. Cancellation of First-Time Homebuyer Incentives

The federal government ended their First-Time Home Buyer Incentive (FTHBI) effective March 2024. There were not enough Canadians taking part in the program to make it worthwhile to continue to offer.

6. Stress Test – Renewals/Transfers

As of November 21, 2024, mortgage renewals can be transferred to a different lender without the stress test being applied. This means borrowers qualify at the contract rate instead of 2.0% above. Giving more options at renewal time.

7. Canada’s Secondary Suite Loan Program expands to $80,000 loans with 2% over 15 years

Starting January 15, 2025, the Canada Secondary Suite Loan Program will double the loan limit from $40,000 to $80,000, making it easier for homeowners to finance the creation of rental units on their property, such as basement suites or laneway homes.

Conclusion

The Canadian mortgage market in 2024 is marked by a combination of flexibility and tightening measures. While homebuyers benefit from more purchasing power through 30-year amortizations and revised stress test rules (when renewing), home owners benefit from new policies. These adjustments are reshaping the housing landscape and giving Canadians more options as they navigate a complex and evolving market.

Do you have a renewal coming up or want to see what these changes can mean for you? Give your Broker a call and we can answer any questions you may have.

 

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Make the Most of Your Mortgage Renewal

Make the Most of Your Mortgage Renewal

 

 

As your mortgage renewal date approaches, our team at Mid Island Mortgage wants to help you make the most of this opportunity. With many Canadians renewing their mortgages in 2025, this renewal season comes with some unique advantages, thanks to recent policy changes. Here’s why a renewal could be more beneficial than you think:

What’s New for Renewals?

Starting November 1st, the Federal Government of Canada has relaxed qualification rules for uninsured mortgage transfers. If you’re switching lenders without increasing your mortgage amount or extending your amortization, the stress test is no longer required. This could mean more lender options and flexibility for you.

In January 2025, homeowners with insured mortgages (initial down payment of less than 20%) will be able to refinance up to 90% of their home’s value to add a secondary suite or carriage home. This option allows homeowners to generate rental income and offset monthly expenses—a new pathway to financial flexibility.

 

3 Tips to Maximize Your Renewal:

  1. Start Early: Begin the process 4-6 months before your renewal. This gives you time to explore competitive rates and tailor your mortgage to your current goals. If rates drop before your renewal, most lenders will adjust your rate up to 10 days before funding.
  2. Reassess Your Financial Goals: Your priorities may have shifted since you first got your mortgage. Consider switching from fixed to variable (or vice versa), altering your term, or refinancing to manage home improvements, maintenance, or debt consolidation.
  3. Let Us Do the Shopping: Don’t limit yourself to your current lender’s renewal offer! As Mortgage Brokers, we partner with multiple lenders to find you the best rates and terms for your situation, saving you time and effort. We will help you determine if moving your mortgage is an option that is in your best interests.

We’re here to guide you through every step of your renewal. Feel free to reach out with any questions or to discuss your options with one of our brokers.  Our mortgage brokers can provide tailored advice and help you find the best options suited to your needs.

Call us at 250-753-2242

 

Locally owned and operated since 1985.

“The name friends recommend”

Want to get in touch? Send us an email:

Updates: BC Tenancy Act & 30 Year Amortizations First Time Buyers

BC Tenancy Act Changes & 30-Year Amortizations for First-Time Buyers

Recent government policy changes have significantly impacted the real estate and mortgage landscape in British Columbia. These changes, which took effect in July and August 2024, are crucial for landlords, tenants, and home buyers to understand. The amendments to the BC Tenancy Act and the new rules for First-Time Home Buyer amortizations are particularly noteworthy. Read on to learn more about these two significant updates.

BC Tenancy Act Key Changes

Effective July 18, 2024, several important changes to the BC Tenancy Act have been implemented. Here’s what you need to know:

  1. RTB Landlords WebPortal: Landlords must now register all notices to end a tenancy on an online portal and include the reason for termination.
  2. 120-Day Notice to Tenants: The notice period for tenants to vacate a property for owner occupation has increased from 2 months to 4 months.
    • Notice starts on the first day of the rental period.
    • Example: If notice is given on July 22, tenants must vacate by December 1.
  3. Increased Compensation: Tenants will receive 2 months’ free rent, up from the previous 1 month. Additionally, if the property is not used as stated for 12 months after the tenancy ends, the landlord or buyer owes the tenant 12 months’ rent.
  4. Increased Time to Dispute: Tenants now have 30 days to dispute a notice, up from the previous 2 weeks.

Considerations for Buyers:

  • Mortgage Interest Rate Holds: Rate holds currently last 90-120 days. When buying a tenanted property, work with your mortgage broker or lender to ensure your approval will hold until completion.
  • Owner-Occupied Purchase: When buying a tenanted property that will be your principal residence, be aware that the 120-day notice will postpone your move-in date.
  • Investor Impact: Selling tenanted properties will now involve additional considerations for landlords.

For more information, visit the Tenancy Act Changes.

If you’re looking to purchase a tenanted home, consult your REALTOR® and mortgage broker.

First-Time Home Buyers: 30-Year Amortization

Starting August 1, 2024, first-time homebuyers purchasing newly constructed homes priced under $1 million can benefit from 30-year amortizations. This change applies to insured mortgages, with a minimum down payment requirement of 5% on the first $500,000 and 10% on the balance. This update aims to increase buying power for eligible purchasers.

Eligibility Criteria:

To be considered a first-time homebuyer, at least one borrower on the application must meet one of the following criteria:

  • The borrower has never purchased a home before.
  • In the last 4 years, the borrower has not occupied a home as a principal residence that they or their current spouse/common-law partner owned.
  • The borrower recently experienced the breakdown of a marriage or common-law partnership.

First-time homebuyers should connect with their mortgage professional to update their application and determine how the increased amortization impacts their pre-qualification.

For more details, visit the CRA 30-Year Mortgage for First-Time Home Buyers.

Stay Updated

As mortgage regulations continue to evolve, we remain committed to keeping you informed with the latest information. For personalized advice and to discuss your specific situation, call us today at 250-753-2242.

Zoning Changes: City of Nanaimo Responds to Bill 44

Bill 44 – zoning changes

The Provincial Budget announced in April includes Bill 44-Small Scale Multi Unit Housing (SSMUH) initiative.  Municipalities in BC had to take action and announce their zoning bylaw changes by June 30, 2024.

On June 18, 2024 the City of Nanaimo’s response was announced.

What is Zoning?

Zoning refers to designations that are set out by a city or regional district that outline what is and isn’t allowed, including conditions for development and land use.  Previously, the bulk of Nanaimo’s residential zoning was R1 – this allowed for one single residential dwelling, or for two principal dwellings on certain corner lots.  R1 zoning has been changed to R5 for the most part; R5 allows for development of small scale multi family residential dwellings of up to 3-4 units.  Many homeowners can now add a secondary suite, and a carriage house.

Click here to check out this City of Nanaimo Zoning Map. 

Other Changes

Among the changes to zoning types, Nanaimo now recognizes suites in duplexes, row houses and townhouses.  Lot size restrictions for secondary suites are removed, and R5 zoning have decreased front yard setbacks.  Units zoned R14 Old City Low Density, allow for fourplexes, and have special density provisions if the integrity of existing homes are being retained.  For specific details and questions please contact the City of Nanaimo.

The Province’s action of SSMUH addresses the ongoing housing shortage being faced by British Columbians. With multiple programs available, homeowners should ensure they are aware of the tools and resources at their disposal.  The Secondary Suite Incentive is available for those who are building a suite in their principal residence.  This is a $40,000 forgivable loan that assists homeowners with the cost of renovations. The rental suite must be rented at below market rents for 5 years.  To find out what ‘below market rents’ means in your area, please click Here. 

Our May Blog Post has the basics on the Secondary Suite Initiative. 

For further details of the Suite Assistance Initiative, visit BC Housing Assistance – Suite Initiative.

Our team is here to answer any questions you have. We will help determine the options for turning equity into cashflow. Call us 250-753-2242.

 

Secondary Suite Incentive

Couple unpacking their boxes in new home

The Secondary Suite Incentive Program (SSIP) will help homeowners create affordable housing in their communities. The program will provide money to help homeowners create a new secondary suite on their property to be rented out for below market value.

  • Homeowners who qualify will receive up to 50% of the cost of renovations, up to a maximum of $40,000.

The program will provide a rebate in the form of a forgivable loan—a loan that does not need to be repaid if the homeowner follows the terms of the program. For the loan to be forgiven, the new unit must be located on the same property where the homeowner lives and must be rented out at below market rates, set by BC Housing, for at least five years.

Learn more: Province of British Columbia’s Home Suite Home Guide.

Are you Eligible?

  • Is the home that you plan to build a suite in your primary home where you file taxes and register your vehicles?
  • Was the assessed value of your home in 2024 less than $2,150,000?
  • Are all registered home owners Canadian Citizens or permanent residents?
  • Was the combined income of all principal residents less than 209,420?
  • Is the home located within the approved list of municipalities?

follow this link to BC Housing’s checklist:

https://secondarysuite-eligibility.bchousing.org/

How to Apply

  1. Plan your project and prepare to apply
  • Check with your municipality to confirm if zoning allows for a secondary suite
  • Arrange for contractors and financing
  • Apply for a building permit as required (building permits issued on or after April 1, 2023 will be considered)
  1. Apply online using the SSIP portal

Apply for SSIP or manage application

  • Submit eligibility documents (proof of residence and income) and
  • Include your municipal building permit

Need SSIP portal help? View application resources for guides and videos

After you Apply

  • After approval, complete construction of your secondary suite
  • Once construction is complete
    • Submit the occupancy permit issued by your municipality
    • Provide proof of construction costs to receive the loan
  • Rent out suite and maintain program requirements

When program requirements are met, the loan will be forgiven

Applications will be approved on a first come, first served basis until annual funding is used up.

Frequently Asked Questions

Applications/Eligibility/Guide

https://www.fvrd.ca/assets/Services/Documents/Building~and~Bylaw/Guide%20to%20Secondary%20Suites.pdf

https://secondarysuite.bchousing.org/

https://www.bchousing.org/housing-assistance/secondary-suite

https://www.ctvnews.ca/politics/canada-to-allow-30-year-amortization-for-first-time-buyers-mortgages-on-new-homes-1.6842913

2024 Federal Budget Announcements and Thirty Year Amortization Period

Finance Minister Chrystia Freeland announced April 11, 2024 that the federal government will allow a thirty year amortization period on insured mortgages for first-time homebuyers purchasing newly built homes. Some say expanding the policy to all Canadians would help make home ownership more affordable. The change takes effect Aug. 1, 2024.

Under the current rules, with a down payment less than 20 per cent of the home price, the longest allowable amortization is 25 years. Extending amortization, to a thirty year amortization makes monthly mortgage more affordable for young Canadians who want to buy their first home.

This will allow more opportunities for home ownership and will ultimately contribute to economic revival and economic recovery. Enabling some Canadians to stop renting and become homeowners.

First Time Home Buyers Withdrawal Plan – RRSP

Freeland also announced the government will raise the amount first-time homebuyers can withdraw from their RRSPs to $60,000 from $35,000 to buy a home. That will take effect April 16, 2024 the day the federal budget is set to be released. The size of a down payment and the amount of time needed to save up for one are much larger than they used to be. Withdrawals will also have an extended timeframe for repayment.

People who have made or will make withdrawals between Jan. 1, 2022, and Dec. 31, 2025, are also getting more time to begin repayment — up to five years rather than two. 

Ottawa said the changes are meant to work in tandem with the First Home Savings Account, which it launched last year. The rules governing that program allow prospective homebuyers to start saving for up to 15 years once they open an account, with an annual $8,000 (tax deductible) deposit cap and a lifetime contribution limit of $40,000. Unlike the RRSP First Time Home Buyers Withdrawal Plan, qualified withdrawals do not require repayment and are non-taxable.

Freeland said more than 750,000 Canadians have opened an FHSA to date. While the program came online April 1 of last year, most Canadian financial institutions only began offering the account as of last summer or fall.

Ottawa also announced changes to the Canadian Mortgage Charter that will include an expectation that financial institutions offer permanent amortization relief to protect existing homeowners who meet certain eligibility criteria.

That would allow eligible homeowners to reduce their monthly mortgage payment to a number they can afford for as long as needed.

 

https://www.ctvnews.ca/politics/canada-to-allow-30-year-amortization-for-first-time-buyers-mortgages-on-new-homes-1.6842913

 

https://www.cbc.ca/player/play/1.7171449