The Trudeau government wants to increase the supply of affordable housing by involving home owners. New measures could motivate them to convert their unused basement or garage into rental accommodation.
Adding an accessory dwelling unit has previously been costly for a homeowner due to renovation and borrowing costs.
As of January 15, 2025, homeowners will be able to access refinancing of their mortgage loan, whether insured or not, of up to 90% of the value of their home and renovation. They can even amortize it over 30 years and insure this new loan up to $2 million.
To have access to this measure, Canadians must already be owners, live in the property in question and agree not to do short-term rental with the added accessory dwelling unit.
Accessory dwelling units must be fully self-contained with kitchen and bathroom, have their own entrance and meet municipal zoning requirements.
The new accommodation will make it possible to accommodate grandparents and children, or to provide rental income which will allow owners to repay part of their mortgage loan.
“The Canadian government wants to stimulate housing construction without waiting for each entrepreneur to have the perfect project,” analyzes John Fucale, senior vice-president at Multi-Prêts Hypothèques.
“It gives the individual an opportunity to find another source of income to pay their mortgage in cities where prices are very high, while creating additional housing construction that does not currently exist in the market. »
What will the cities’ response be?
However, the majority of cities in Quebec do not yet allow this type of development, recalls the Association of Construction and Housing Professionals of Quebec (APCHQ).
Some municipalities are in the process of reviewing their zoning regulations, while a few already authorize the construction of accessory dwelling units.
Sainte-Catherine and Victoriaville authorize all types of accessory dwelling units, whether integrated into the main building or detached like cottages in the backyard. The cities of Quebec, Granby and Laval have also modified their regulations.
“Even in cities where it is accessible, there are still a lot of restrictions. We do not allow the addition of a secondary building or an expansion of the property,” maintains David Goulet, director of the economic service at the APCHQ
“Will cities adopt zoning that will allow this type of new housing? We don’t know, so the important thing is to put pressure on the municipalities to ensure that it is adopted. »
There are still a lot of questions, says John Fucale at Multi-Prêts Hypothèques.
“Yes, on the financing side, the federal government has a plan to support these projects; now, how will each city react? How are they going to issue the building permits for all these properties?
“That said, housing is such a big concern for the government that it is certain that the zoning change will be favorable in the majority of cities. We are far from the density in the majority of cities in Quebec,” he says.