Building a laneway suite or garden suite in Toronto can be a great way to add living space and income potential to your property.
However, financing a laneway suite build can be a bit tricky, as traditional mortgage lenders may not be familiar with this type of construction.
Here are a few ways to finance your laneway suite build:
- Traditional Mortgages: If you own your property outright or have significant equity in it, you may be able to finance or refinance your laneway suite or garden suite build in Toronto with a traditional mortgage.
- Home Equity Line of Credit (HELOC): If you have equity in your existing home, you can use a HELOC to finance your laneway suite build. This type of loan allows you to borrow against the value of your home, and you can use the funds for any purpose, including construction.
- Construction Loans: A construction loan is a short-term loan specifically designed to finance the cost of building a new home. Construction loans typically come with higher interest rates than traditional mortgages, but they can be a great option if you don’t have the equity for a home equity loan.
- Personal Loans: Personal loans can be a good option if you don’t have a lot of equity in your home or don’t want to take on a mortgage. Personal loans can be used for any purpose, including construction.
- Government Programs: The City of Toronto currently offers two programs to help eligible home owners build laneway and garden suites, the “Development Charges Deferral Program for Ancillary Secondary Dwelling Units” and the “Affordable Laneway Suites Program”, with forgivable loans of up to $50,000. Check with the City of Toronto for more details on these programs.
How We Can Help
At Urban Lanes, we understand that financing a laneway suite or garden suite build can be a daunting task. That’s why we offer our clients personalized assistance in figuring out which financing option is best for their specific situation.
Whether you’re looking to take out a traditional mortgage, a HELOC, or exploring government programs, our team of experts will guide you through the process and help you make informed decisions about your laneway suite or garden suite financing.
Contact us today to schedule a consultation and let us help you turn your dream of building a laneway suite or garden suite into a reality!