(CMT)

Introduction

• The Secondary Suite Refinance Program, launched on January 15, allows homeowners to refinance up to 90% of their property value (up to $2M).

• Designed to encourage long-term rental units, but excludes short-term rentals like Airbnb.

Unclear Program Details

• Mortgage brokers cite a lack of clear guidelines on financing, permits, and inspections.

• Homeowners and lenders are hesitant due to vague eligibility criteria.

Definition of "Distinct Secondary Suite" Unclear

• Questions remain on what qualifies as a "distinct secondary suite" (e.g., basement suites, laneway houses).

• Ambiguity may lead to financing challenges.

Exclusion of Multi-Generational Homes

• The program does not support non-rental expansions, limiting options for multi-generational families.

• Rising demand for multi-generational housing is overlooked.

Impact of U.S. Tariffs on Renovation Costs

• Upcoming U.S. tariffs could raise material and labor costs, adding financial uncertainty.

• Lenders are reluctant due to potential cost overruns and project delays.