‘Increasing demand’ for secondary units as homebuyers grapple with rate hikes
As Canadians grapple with interest rate hikes and high mortgage payments, there is a growing demand for houses with secondary units, like basement apartments and laneway homes, real estate experts say.
Recent changes in zoning bylaws in cities across Ontario and Alberta have offered greater flexibility for building new secondary suites that have their own private entrance in pre-existing homes.
This comes at a time when the country is in the midst of a housing crisis with not enough properties being built for a growing population.
Secondary dwellings “are a low-hanging fruit” that can not only help solve the housing supply issue Canadians are facing but can also offer much-needed rental income to homeowners facing high mortgages, says Ken Bekendam, CEO and founder of legalsecondsuites.com.
His company helps homeowners and real estate investors in Ontario create additional units in pre-existing properties.
“We’re seeing an increasing demand for (such services),” Bekendam told Global News.
“A lot of first-time homebuyers are more interested in homes that already have an income-producing suite in it or that can easily be added.”
The Bank of Canada raised its key interest rate for a second consecutive decision last week, and there are concerns about how possible future hikes could further put a wrench in home-buying plans for many Canadians.
Higher mortgage rates make it harder for a homebuyer to qualify for a loan, says Anthony Passarelli, senior analyst at the Canada Mortgage Housing Corporation (CMHC).
This is why a secondary suite is an attractive option that could make the difference in making your home ownership dream a reality, he said.
“You would think it would become more appealing to be able to have that extra
Read more on globalnews.ca
