What are the implications of the enhanced program?
The Royal Bank of Canada (RBC) has unveiled new financing options to assist Canadian homeowners in building, retrofitting, and renovating their properties.
The enhancements to RBC’s residential construction mortgage program, effective June 28, are meant to provide opportunities for homeowners to add laneway homes, garden suites, modular units, and other auxiliary dwelling units to their properties. Homeowners can also redevelop their single-family homes into duplexes, triplexes, or multiplexes, depending on municipal zoning regulations.
The updated mortgage program aims to meet growing demand for supportive housing options and supplemental rental income among Canadian homeowners, according to a news release. Leah Robinson, vice president of home equity policy and regulatory management at RBC, highlighted the limited access to financing for property redevelopment in the past.
“Through the enhanced residential construction mortgage program, RBC is unlocking a new capability for homeowners to change their property to better suit their needs and help create more housing units for Canadians who need them,” Robinson said.
The federal government’s recent budget announcement, which introduced the Canada Secondary Suite Loan Program, further supports this initiative. Homeowners can access up to $40,000 in low-interest loans to build secondary suites, aligning with municipalities’ amendments to zoning bylaws to accommodate such developments.
Supporting homeowners in property renovations
RBC’s initiative is seen as a significant step in addressing Canada’s housing shortage. The bank’s program encourages collaboration between homeowners and home builders. “We’re excited to support clients who decide to embark on this journey,” Robinson added. “It’s a new frontier for many of them, and ensuring they have the financial support and advice they need to achieve a successful outcome is a key part of our role as a trusted advisor and stakeholder in the future of Canadian communities.”
According to the news release, the enhanced mortgage program is part of RBC’s broader commitment to support homeowners in redeveloping single-family homes into multi-family homes. The initiative follows RBC’s acquisition of HSBC Canada and its ongoing efforts to provide additional retail lending support.
Homeowners interested in these new financing options are encouraged to consult with RBC mortgage specialists to explore the potential benefits for their specific situations.
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