As of May 2023, Brampton’s by-law allows homeowners to have up to three units on a property, including the main home. Here’s how it works:
- You can have a principal dwelling, one attached second unit (e.g., a basement apartment), and one separate garden suite (e.g., a unit in the backyard).
- Alternatively, you can have a principal dwelling with one attached second unit, and one attached third unit (e.g., another self-contained unit within the home).
If you’ve already registered a second unit with the City of Brampton, you can apply to add a third unit. Alternatively, you can apply for a second and third unit with one set of plans. For more information visit the City of Brampton website HERE.
Why This Matters for Homeowners and Renters in Brampton:
- Extra Income for Homeowners: If you own property in Brampton, creating a secondary unit allows you to generate rental income. With the city’s growing population and housing demand, secondary units are a practical way to offset mortgage payments, especially in Brampton’s competitive real estate market.
- Affordable Housing Solutions: Brampton’s population is increasing rapidly, and secondary units offer an affordable housing option for tenants, including young professionals, students, or families seeking a more budget-friendly rental. This helps alleviate some pressure on Brampton’s housing supply, which is why the government is focusing on this initiative.
- Multi-Generational Living: Secondary units are ideal for families looking to accommodate aging parents or adult children. They provide a private space for family members while keeping everyone close together. This trend is becoming more popular, especially within Brampton’s culturally diverse community, where extended family living arrangements are common.
- Property Value Increase: A well-constructed secondary unit can significantly increase the value of your property. For those considering future resale, having an additional income-generating space is a strong selling point that could attract buyers willing to pay more.
The City of Brampton has embraced secondary units as part of its strategy to create more affordable housing. The city provides guidelines and zoning by-laws to ensure these units are safe and legal and meet all building requirements, including fire safety and accessibility. Brampton has resources available to guide homeowners through the legalizing and constructing of secondary units.
Overall, secondary units are a win-win for Brampton homeowners looking to make the most of their property and for renters searching for affordable housing options. In Brampton, secondary units are encouraged to help ease the housing crisis and provide more affordable housing options.
NEW 2025 Insured Refinancing Rules: Get the Funds you Need for your Secondary Unit
The government is reintroducing insured mortgage refinancing, a program they stopped in 2016, to help increase housing availability. Starting January 15, 2025, homeowners can refinance their mortgages up to 90% with a 30-year amortization, using the funds to build more housing units on their property.
Here’s a simple overview:
- Use of refinance proceeds: You must use the money to build extra living spaces, like a basement suite, laneway house, or above-garage apartment. The refinance money can only go toward the renovation to achieve the secondary unit(s), which likely means quotes will be required upfront. .
- Loan amount: You can borrow up to 90% of your property’s value, based on how much it’s worth after the improvements (i.e., adding the new housing unit). This is important because 90% refinancing hasn’t been available since 2010. .
- Property value cap: Your home must be worth $2 million or less to qualify..
- Loan length: You can stretch your mortgage payments over 30 years, giving you more breathing room..
- Number of units: You can have up to four units on your property, although Brampton currently allows only 3..
- Who qualifies: You must own the property and live in one of the units (or have a family member living there). The new units can be rented out but can’t be used for short-term rentals like Airbnb..
- Other rules: The new housing units must follow local zoning laws and be fully equipped with kitchens, bathrooms, and separate entrances.
This program is in addition to the Canada Secondary Suite Loan Program (CSSLP), which offers low-interest loans up to $40,000 to help homeowners add extra suites to their homes.
Secondary Unit Benefits:
- You may find it easier to manage your mortgage payments with rental income from your new unit.
- Can lead to quicker construction of more affordable housing, something Brampton desperately needs.
- It may encourage more multi-generational living, freeing up their current homes for others in need.
Rakhi Madan: Your Trusted Expert for Secondary Unit Financing and New 2025 Refinancing Rules
When it comes to financing your secondary unit and navigating the new rules set to take effect in January 2025, Rakhi Madan is here to guide you every step of the way. With a history of helping hundreds of Brampton homeowners achieve their goals, Rakhi’s expertise, trusted lender connections and glowing client reviews speak for themselves. Whether you’re looking to refinance and build a secondary unit, or explore other mortgage options, you can trust Rakhi to manage the details and secure the best solution for your needs. Trust, experience, and results—that’s Rakhi Madan.
