Efficient way to clear your mortgage
Additional / Secondary Dwelling Units (legal basement units / SDU's / ADU's) have become increasingly popular in Ottawa and Ontario for a very good reason.
Converting a basement into a separate unit will allow you to settle your mortgage more efficiently and offer more
crucial housing to the residents of Ottawa. With years of experience under our belt, we help all of our clients obtain legal additional / secondary units.
Finishes and Appliances
The appliances and finishes you choose in your kitchens, bathrooms, floors, etc have a huge impact on the cost of your new units.
Code Requirements
Requirements such as egress windows, concrete basement walk-outs and window wells can influence the total cost.
What can influence the costs
Typical General Costs
Depending on the size of your unit and the amount of bedrooms, you can expect a general cost of $60,000 to $120,000.
New Financial Assistance by the Government
Today's mortgage reforms are designed to make it easier for homeowners to add secondary suites—such as basement apartments, in-law suites, and laneway homes—building on the federal government’s recent announcement of the most significant mortgage reforms in decades. These reforms are aimed at unlocking homeownership opportunities for Canadians of all generations.
Starting December 15, 2024, Canadians will be able to apply for reformed mortgages, resulting in lower monthly payments.
Key changes include:
1. Raising the Insured Mortgage Cap:
The $1 million price cap for insured mortgages will be increased to $1.5 million to reflect the current housing market and enable more Canadians to qualify for mortgages with a down payment of less than 20%. This cap, which has remained unchanged since 2012, will allow more Canadians to purchase homes within their financial reach.
2. Expanding 30-Year Mortgage Amortizations:
The eligibility for 30-year mortgage amortizations will be extended to all first-time homebuyers and those purchasing new builds, reducing monthly payments and helping more Canadians afford homeownership. This expansion includes both new construction and condominiums.
The move is designed to incentivize the building of more homes and address the ongoing housing shortage, in line with the Budget 2024 commitment, which also allows first-time homebuyers purchasing new builds to access 30-year amortizations starting August 1, 2024.
These reforms aim to help more Canadians secure affordable homes while also encouraging the construction of additional / secondary dwelling units, which can provide much-needed rental options and support multi-generational living.
Ontario's Secondary Suite Incentive Program is an initiative designed to encourage the creation of secondary suites (also known as accessory apartments or in-law suites) within existing homes.
The program is aimed at increasing the availability of affordable rental housing in the province by making it easier for homeowners to build or convert basements, garages, or other spaces into legal secondary units.
"Through our Housing Accelerator Fund, we’ve already reformed zoning to make this possible, and today, we’re announcing homeowners will soon be able to access up to $40,000 in low-cost loans to make it easier add secondary suites."
- The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
Key Features of the program
Eligibility Criterias
"Mortgage refinancing for homeowners looking to add secondary suites to their homes & Canada Secondary Suite Loan Program" starting January 15th 2025
Financial Incentives
Under the program, homeowners will have access up to $40,000 in low-interest loans
Legalizing Existing Units
One of the key goals of the program is to make it easier for homeowners to legalize existing secondary suites that may not be up to current building codes or zoning laws.
New Zoning
Municipalities may offer some flexibility in their zoning and building code requirements to make it easier for homeowners to add secondary suites.
Property Ownership:
The homeowner must own the property where the secondary suite will be built or legalized.
Suitability of the Property
The property must be suitable for a secondary suite, meaning there must be adequate space for the suite and the unit must comply with local zoning laws and building codes.
Construction Requirements
The program typically supports renovations or construction that result in a safe and legal unit. This includes ensuring proper egress (exit in case of fire), ventilation, and fire safety measures.