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Special Notice: New Policies Could Boost Demand & Allow Refinancing of 90% Future Value

Special Notice: New Policies Could Boost Demand & Allow Refinancing of 90% Future Value

The Canadian government has just announced new initiatives that could significantly impact the real estate market—creating demand-side stimulus that might support and even increase home prices in the near future.

For Homeowners: Unlock the Value of Your Property

Starting January 2025, the government will allow homeowners to refinance up to 90% of their home’s value, including the value added by secondary suites. Whether it’s converting your basement into a rental apartment or adding a laneway home, this offers a huge opportunity to increase both income and property value.

Why this matters:

  • Increased Demand for Home Renovations: As more homeowners seek to build or expand secondary suites, we could see a surge in demand for home improvements and refinances, which will likely drive up home values across many markets.

  • Added Rental Income: Secondary suites not only help generate additional rental income but also make homes more attractive to buyers looking for long-term flexibility.

For Buyers: How This Stimulus Could Impact You

For prospective homeowners, the ability to easily finance secondary suites is likely to increase demand for properties with secondary suite potential. While this opens up more opportunities, it could also lead to upward pressure on prices as more buyers seek homes with the ability to generate rental income or house family members.

Real Estate Market Outlook: Prices Could Rise

These new policies act as a demand-side stimulus for the real estate market. By enabling homeowners to access up to 90% of their home’s value (including the added value of a secondary suite) and encouraging secondary suite construction, demand for refinancing and home improvement is expected to rise. This could push property prices higher as more people improve or expand their homes, particularly in competitive markets.

Additionally, while unlocking 70 federal properties (including 14 new ones) will provide more land for development, the immediate effect of increased demand for homes with secondary suite potential could outpace supply in some areas, leading to potential price increases.


Overall, these new initiatives are likely to support the real estate market by stimulating demand, potentially driving prices upward in areas where housing demand is already high. If you’re thinking about making any moves—whether buying, selling, or adding value to your home—now is a great time to stay informed and explore your options.

I’m here to help with any questions or if you’d like to discuss how these changes might impact your property or buying plans. Feel free to reach out anytime!

MLS® property information is provided under copyright© by the Vancouver Island Real Estate Board and Victoria Real Estate Board. The information is from sources deemed reliable, but should not be relied upon without independent verification.