Product provides 'critical solution' to housing issues, says SVP
Equitable Bank has announced a new construction loan to assist Canadians finance building laneway homes or garden suites. The loan product, Laneway Mortgage, will initially be available in the Greater Toronto Area, Greater Vancouver Area and Calgary.
The move comes as a response to major cities in Canada facing housing shortages that led to high rental costs and home prices.
“Making efficient use of space in cities as Canadians' housing needs evolve is more important than ever. The Laneway House Mortgage provides a critical solution that can help support urban densification and create additional income streams amid affordability challenges, while also allowing homeowners to stay in place,” said Mahima Poddar, SVP and group head of personal banking, Equitable Bank.
“Canadians work hard, and they deserve a good home to come back to at the end of the day – one that's within the communities they love. Equitable Bank is proud to continue playing a lead role in financing projects that support housing accessibility in Canadian cities.”
The Laneway House Mortgage is offered on properties that are free and clear, or in combination with new or existing mortgages where Equitable Bank holds, or will hold, the first position. The loan is available to homeowners through the bank's mortgage broker partners.
It is also part of the bank's bid to support housing densification. Other efforts include lending towards the development and renovation of multi-unit residential projects such as apartments, condominiums, student housing and other types of multi-unit housing in major cities. In 2023, Equitable Bank funded $3.4 billion in loans for multi-unit residential properties.
