A Guide to CMHC’s New 90% Refinance Program for Secondary Suites

Zach Silverman | November 4, 2024

With Canada’s growing need for affordable housing and rental options, CMHC’s new refinancing program offers a practical solution for homeowners to add secondary suites to their properties. By allowing refinancing up to 90% of the property’s value, with a 30-year amortization, CMHC aims to help homeowners generate rental income while increasing housing supply. This guide will break down how this program works, its benefits, and how Canadian homeowners can leverage it to build wealth.


A Guide to CMHC’s New 90% Refinance Program for Secondary Suites


Program Overview and Eligibility Requirements


Eligibility and Basic Parameters

The CMHC program, effective January 15, 2025, allows homeowners to refinance their properties up to 90% of the home’s value, provided the funds go toward building a legal secondary suite. This initiative specifically targets homeowners who want to create additional rental spaces, such as basement apartments or laneway homes. To qualify, homeowners must occupy one of the property’s units, and the total property value must remain below $2 million once the suite is built.


Why This Program is Important

The flexibility offered in the 30-year amortization structure means that homeowners can add valuable space without the steep monthly payments often associated with renovation financing. This will encourage more Canadians to invest in their homes, contributing to the national goal of increasing affordable housing.



2. Financial Flexibility: Lower Monthly Payments


How a 30-Year Amortization Helps Homeowners

One of the most significant benefits of this program is the extended amortization period. A 30-year amortization term helps homeowners lower their monthly payments, making it easier to manage cash flow as they work on building their new suite. For many, this financial breathing room can make the difference between completing a suite project or not.


Increased Accessibility for Moderate Income Homeowners

This lower monthly commitment is also ideal for moderate-income homeowners who want to boost their income through rentals but have been held back by traditional loan structures.



3. Leveraging Property Equity with 90% LTV


The Benefits of High Loan-to-Value (LTV) Ratios

Traditional refinancing options often max out at 80% LTV, but CMHC’s program increases this to 90% when financing goes toward a secondary suite. This allows homeowners to tap into a larger portion of their equity, minimizing the need for additional, high-interest financing like personal loans or lines of credit.


Wealth-Building Through Real Estate

By using existing home equity, homeowners can create a secondary income source, which not only increases the property’s value but also builds long-term wealth. This approach provides a path to building financial resilience through real estate.



4. Support for Sustainable Housing: Addressing the Rental Shortage


Building More Housing for Canadian Renters

Canada’s rental market faces high demand, particularly in urban areas where rental costs are rising. This program offers a sustainable solution by empowering homeowners to add rental units, increasing the overall rental supply.


The Impact on Communities and Local Economies

As more homeowners build legal secondary suites, rental options expand, helping communities retain residents and provide affordable living spaces. This program aligns with recent municipal zoning reforms designed to ease the construction of additional units in urban areas.



5. Building a Long-Term Revenue Stream with CMHC’s Support


Secondary Suites as a Source of Passive Income

For homeowners, adding a secondary suite provides a practical way to generate passive income. This additional revenue can be directed toward household expenses, debt repayment, or reinvested for further home improvements.


Financial Stability in Retirement

A secondary suite can be particularly beneficial for homeowners nearing retirement age, providing a steady income stream that can offset pension limitations or contribute to a comfortable retirement.



Conclusion: Building Wealth and Community with CMHC’s Refinance Program


CMHC’s new program is more than just a financing option; it’s a pathway for homeowners to contribute to Canada’s rental housing market, build wealth, and create a financially secure future. For homeowners looking to make the most of their equity, this program offers the flexibility, affordability, and support needed to build secondary suites effectively.


Actionable Takeaways


  • Consult a Mortgage Expert: To maximize the benefits of CMHC’s program, speak to a mortgage professional about eligibility, LTV considerations, and other financing strategies.

  • Review Local Zoning Laws: Ensure your property meets municipal requirements for secondary suites.

  • Plan for Sustainability: Factor in maintenance and operational costs to ensure the suite is financially viable over the long term.

  • Consider Future Value: Understand how a secondary suite can enhance your property’s overall market value.

  • Act Promptly: Since this program launches in January 2025, start planning now to be among the first to leverage this new refinancing option.



If you’re thinking about adding a secondary suite to your home and want to understand how the new refinancing program can benefit you, our team at Silverman Mortgage is ready to assist! Contact us today for expert advice and let’s prepare you ahead of the program’s launch!


RECENT POSTS

Going Through a Divorce? Don’t Let Your Credit Take the Hit

By Zach Silverman • June 3, 2026
Going Through a Divorce? Don’t Let Your Credit Take the Hit Divorce is stressful enough without adding financial fallout to the mix. Between lawyers, paperwork, and emotional strain, it’s easy to overlook how a separation can impact your credit. But your financial future depends on protecting it now—because long after the dust settles, a damaged credit score can linger. Here are a few smart steps to help keep your credit strong and your finances steady as you move forward. 1. Take Control of Joint Debts When it comes to joint debt, both parties are equally responsible—no matter what your divorce agreement says. If your ex misses a payment on an account with your name attached, your credit takes the hit too. Go through all joint credit cards, loans, and lines of credit. Wherever possible: Close joint accounts to stop future shared use. Transfer balances to the person responsible for repayment. Notify lenders in writing of any changes to account ownership. Once everything is updated, pull your credit report after three to six months to confirm all joint accounts have been closed and reporting correctly. Mistakes happen—stay proactive to prevent surprises later. 2. Open Your Own Bank Accounts Separation means financial independence, and that starts with your own banking. Open a new chequing account in your name only and redirect your pay deposits and bill payments there. At the same time, close any joint bank accounts and change passwords on existing online banking and credit profiles. Even in peaceful separations, shared access can cause confusion—or conflict. Protect yourself by ensuring your money and information are secure. 3. Start Building Credit in Your Name If most of your past credit was tied to your spouse’s name, now’s the time to establish your own. Apply for a small personal credit card or secured credit product . Use it sparingly and pay it off in full each month. This helps you build a solid individual credit history, setting the stage for future goals like buying a home, refinancing, or starting fresh financially. 4. Keep an Eye on Your Credit Monitor your credit report regularly for errors or unexpected changes. You can request free reports from both major credit bureaus in Canada— Equifax and TransUnion —once a year. Tracking your credit isn’t just about catching mistakes; it helps you see your progress as you rebuild your financial independence. Final Thoughts Divorce can be emotionally draining, but protecting your credit doesn’t have to be complicated. By taking a few careful steps now—closing joint accounts, building credit in your name, and monitoring your reports—you’ll safeguard your financial health and gain peace of mind as you start your next chapter. If you’d like personalized guidance on managing credit during or after a divorce, reach out anytime. I’d be happy to walk you through your options.

Employment and Mortgage Qualification: What Lenders Look For

By Zach Silverman • May 27, 2026
When you apply for a mortgage, your employment history and status carry a lot of weight. Even if you feel secure in your job, lenders need proof that your income is reliable and will continue. To them, your employment status is one of the strongest indicators of whether you can make your mortgage payments long term. Here’s how lenders typically view different employment situations: Permanent Employment This is the gold standard. Once you’ve passed any probationary period and hold permanent status, lenders see you as a lower risk. It shows that your employer is committed to you, and your income is steady. Probationary Periods If you’re still on probation—usually 3 to 6 months, though sometimes longer—lenders may hesitate. That’s because your employer can end your contract without cause during this period. Once probation is over, you’re considered more secure. That said, context matters. If you’ve worked with the same company for years as a contractor and just transitioned into full-time employment, lenders may accept a letter from your employer confirming that probation is waived. Documentation is key here. Parental Leave Being on or about to take parental leave doesn’t mean you can’t qualify for a mortgage. As long as you have a letter from your employer guaranteeing your position and return-to-work date, lenders can use your regular salary—not your leave income—when assessing your application. Term Contracts This is one of the trickiest categories. Even highly skilled professionals with strong incomes can face challenges here. A term contract has a start and end date, which makes lenders question the stability of your future income. To use term-contract income, lenders generally want to see at least two years of history, or proof that your contract has already been renewed. The more evidence you can show of consistent employment, the stronger your case will be. The Bottom Line If you’re planning to apply for a mortgage, it’s important to understand how your employment status could affect your approval. Whether you’re starting a new job, coming back from leave, or working under contract, lenders want documentation that proves your income is reliable. 📞 If you’ve recently changed jobs or are planning a career shift, let’s connect. I can help you prepare your file so you qualify with confidence and avoid surprises in the approval process.

Deposit vs. Down Payment: Key Differences for Homebuyers

By Zach Silverman • May 20, 2026
When you’re buying a home, two terms often cause confusion: deposit and down payment . While they’re related, they serve very different purposes in the homebuying process. Here’s what you need to know. What Is a Deposit? A deposit is the money you provide when you make an offer on a property. Think of it as a show of good faith that proves you’re serious about purchasing. How it works : Typically, you provide a certified cheque or bank draft that your real estate brokerage holds in trust. If your offer is accepted, the deposit remains in trust until the deal moves forward. If negotiations fall through, the deposit is refunded. Connection to your down payment : Once the sale is finalized, your deposit becomes part of your total down payment. Why it matters : The amount is negotiable, but a larger deposit can make your offer more attractive in a competitive market. Keep in mind, however, that if you back out after conditions are removed, you risk losing your deposit. What Is a Down Payment? Your down payment is the amount you contribute toward the purchase price of your home when securing a mortgage. Minimum requirement : In Canada, the minimum down payment is 5% of the home’s purchase price. Anything less than 20% requires mortgage default insurance. Sources : Down payments can come from your savings, the sale of another property, RRSP withdrawals (through the Home Buyers’ Plan), a gift from family, or even borrowed funds. Example: How They Work Together Imagine you’re buying a $400,000 home with a 10% down payment ($40,000). When you make your offer, you provide a $10,000 deposit . Once conditions are met, that deposit is transferred to your lawyer’s trust account. At closing, you add the remaining $30,000 to complete your full down payment. The lender provides the rest—$360,000—through your mortgage. The Bottom Line Your deposit shows commitment and secures your offer, while your down payment is what makes the mortgage possible. Together, they work hand in hand to get you into your new home. 📞 If you’d like clarity on deposits, down payments, or any other part of the mortgage process, let’s connect. I’d be happy to walk you through it step by step.