Royal Bank of Canada enhances financing options for homeowners aiming to expand or redevelop property

Royal Bank of Canada (RBC) has unveiled expanded financing opportunities for Canadian homeowners looking to maximize the potential of their properties. Starting June 28, RBC’s updated residential construction mortgage program will allow homeowners to finance the construction of laneway homes, garden suites, modular units, and other auxiliary dwelling units. Additionally, the program supports the redevelopment of single-family homes into duplexes, triplexes, or multiplexes, depending on municipal zoning regulations.

The enhancement of the mortgage program is set to address various homeowner needs, whether it’s providing a supportive housing option for family members or creating additional income through rental properties. This initiative reflects a growing interest among homeowners to adapt their properties for diverse uses, amidst increasing housing demands across Canada.

Leah Robinson, Vice President of Home Equity Policy and Regulatory Management at RBC, emphasized the importance of this update, stating, “In the past, homeowners have had limited access to financing that could help them redevelop their home or property in meaningful ways. Through the enhanced residential construction mortgage program, RBC is unlocking new capabilities for homeowners to adapt their properties to better suit their needs and help create more housing units for Canadians who need them.”

The move by RBC coincides with broader legislative changes across Canada, where municipalities are adjusting zoning bylaws to accommodate such developments. The federal government is also supporting these initiatives, evidenced by the recent introduction of the Canada Secondary Suite Loan Program in the federal budget, which offers homeowners up to $40,000 in low-interest loans for building secondary suites.

The program not only benefits homeowners but also opens up opportunities for Canadian home builders. These professionals can now collaborate more closely with homeowners, providing their expertise and advice to ensure successful property adaptations.

Robinson added, “We’re excited to support clients who decide to embark on this journey. It’s a new frontier for many of them, and ensuring they have the financial support and advice they need to achieve a successful outcome is a key part of our role as a trusted advisor and stakeholder in the future of Canadian communities.”

This initiative is part of RBC’s broader strategy to enhance retail lending services, following its acquisition of the former HSBC Canada. The bank’s commitment to facilitating property redevelopment reflects its dedication to supporting the evolution of Canadian housing and community development.

The expansion of RBC’s residential construction mortgage program is a significant step towards addressing the housing shortage in Canada by encouraging property owners to explore innovative living solutions. This approach not only helps in alleviating housing pressure but also promotes sustainable community development.