Canada Mortgage and Housing Corp. is going to make it easier for homeowners renting out apartments in their principal residences to borrow money, a move that could further heat up markets in Toronto and Vancouver.
The Crown corporation, which controls a majority of the mortgage default insurance market in Canada, announced changes to its rules Monday and effective Sept. 28 which are aimed at boosting affordable housing.
A background document sent to lenders and obtained by the Financial Post suggests the change is aimed at what CMHC sees as a significant part of the housing market.
“Many municipalities across the country now formally recognize secondary rental suites as a source of affordable housing,” CMHC wrote in its document intended for industry partners. “Rents in secondary rental suites are often lower than those for apartments in purpose-built rental buildings.”
The Crown corporation has said Vancouver has 26,600 secondary units which comprise almost 20 per cent of the rental stock in the city.