Calgary Homeowners: Secondary Suites = Big Opportunities!
In light of rising living costs, from groceries to real estate, many Calgary homeowners are exploring innovative ways to maximize their property's potential. Recent changes to R-2 zoning regulations and the introduction of supportive financing options have made adding secondary suites an increasingly attractive option.
Understanding R-2 Zoning Changes
Calgary's R-2 zoning district traditionally permitted single and two-family homes. Recent amendments now allow homeowners to develop both a secondary suite and a backyard suite on properties without a rowhouse or townhouse, effectively increasing housing density and providing additional rental opportunities.
Financial Incentives for Secondary Suites
To support homeowners in creating these additional living spaces, the federal government has expanded the Canada Secondary Suite Loan Program. As of December 2024, the program offers loans up to $80,000 with a 2% interest rate over a 15-year term, making it more affordable to develop secondary suites.
Additionally, starting January 15, 2025, homeowners can refinance their mortgages to cover construction costs, accessing up to 90% of their home's post-renovation value, with amortization periods extending up to 30 years.
Investment Returns and Offsetting Living Costs
Investing in a secondary suite can provide a steady rental income stream, helping to offset increased living expenses. For instance, if a homeowner utilizes the $80,000 loan at 2% interest over 15 years, the approximate monthly payment would be around $515. In Calgary's rental market, a well-designed secondary suite can command monthly rents exceeding this payment, resulting in positive cash flow.
Moreover, CMHC allows homeowners to consider up to 100% of the gross rental income from a secondary suite in their total annual income, potentially enhancing mortgage affordability.
Contributing to Housing Solutions
By developing secondary suites, homeowners not only benefit financially but also contribute to alleviating Calgary's housing shortage, providing affordable rental options within established communities.
Team Hayden: Your Trusted Real Estate Partner
Since 1999, Team Hayden, now led by Dexter Hayden, has assisted over 1,500 homeowners in navigating Calgary's dynamic real estate market. Despite housing prices nearly tripling during this period, our unwavering commitment to serving our clients with honesty and integrity remains steadfast.
If you're curious about your home's current market value, considering adding a secondary suite, or know someone looking to buy, sell, or invest in Calgary and surrounding areas, Team Hayden is here to help. Our next generation of real estate professionals is ready to assist yours.
We are never too busy for your referrals and look forward to continuing to serve our community with the dedication and expertise you've come to expect.
For a deeper understanding of Calgary's secondary suite incentives and zoning changes, connect with Dexter for a coffee or a call.
