Laneway House Mortgage

A laneway house mortgage is a financing solution designed to help homeowners build or refinance a laneway home on their property. With recent government incentives, including increased loan limits and flexible refinancing options, investing in a laneway home has never been more accessible.

What is a Laneway House Mortgage?

A laneway house mortgage provides funding to construct a secondary dwelling on an existing residential property. Whether you are looking to create additional rental income, accommodate family members, or increase the value of your property, this type of mortgage can help you achieve your goals.

With access to lenders who specialize in secondary suites and laneway housing, we can provide financing options tailored to your needs.

Who Can Qualify for a Laneway House Mortgage?

A laneway house mortgage is available to homeowners who:

• Own a property with lane access
• Have sufficient equity in their home
• Can demonstrate financial stability and income to support the mortgage

Each homeowner’s situation is unique, and our team will assess your financial profile to find the best financing options available.

Government Incentives for Laneway Homes

The Canadian government recently expanded incentives for homeowners looking to build secondary suites and laneway homes. The Canada Mortgage and Housing Corporation (CMHC) has doubled the loan limit for the Canada Secondary Suite Loan Program from $40,000 to $80,000 at a discounted interest rate of 2% on a 15-year amortized loan. Additionally, mortgage refinancing options now allow homeowners to borrow up to 90% of the post-renovation value (PRV) of their home, up to a maximum of $2 million, with a 30-year amortization period.

What Are the Costs Involved?

The cost of building a laneway home varies based on size, design, and materials, ranging from $200,000 to $400,000. While construction costs may seem high, financing through a laneway house mortgage can make this investment manageable. The combination of government-backed loan programs and mortgage refinancing options provides a pathway to build without requiring significant upfront capital.

Why Invest in a Laneway Home?

• Generate Rental Income: A laneway home can serve as a rental unit, providing a steady income stream to help offset mortgage payments.
• Increase Property Value: Adding a laneway home can significantly boost the overall value of your property.
• Flexible Use: Whether for aging parents, adult children, or as an Airbnb rental, laneway homes offer versatile living space.
• Government Support: With newly available financing options and incentives, constructing a laneway home is more affordable than ever.

Why Choose Alberta Mortgages for a Laneway House Mortgage?

At Alberta Mortgages, we specialize in helping homeowners secure financing for secondary suites and laneway homes. Our team works with a network of lenders to provide:

• Competitive mortgage rates and flexible terms
• Expert guidance through the financing and application process
• Support in navigating CMHC loan programs and mortgage refinancing options

Take the Next Step

If you’re considering building a laneway home, now is the time to explore your financing options. With government incentives and specialized mortgage products, investing in a laneway home is a smart financial decision.

Got Questions? Ready to Explore Your Options? Contact us today to discuss your laneway house mortgage, or apply online to get started. Alberta Mortgages is here to help you turn your property’s potential into a reality.