As Canadians grapple with high interest rates and mortgage payments, homebuyers are looking toward purchasing houses with secondary units.

Zoning bylaws across Ontario and Alberta are offering greater flexibility for building secondary units that have their own private entrance in pre-existing homes.

This is a great solution for Canadians as the country faces a housing crisis due to a growing population. Not only can secondary units increase the amount of living space for Canadians, they also serve as extra income for homeowners with high mortgages.

Why Are Secondary Units Growing In Demand?

The Bank of Canada recently raised its key interest rate and there are concerns it will keep increasing. Many homebuyers have felt the weight of this change and are looking for ways to afford a home. While higher mortgage negatively impacts homebuyers’ ability to qualify for a loan, secondary units are an attractive and feasibly option.

In Toronto, there were around 75,000 secondary units in 2019 and has since gone up. Due to relaxing guidelines in Toronto, there has been a large increase in laneway homes. Specifically in Ontario, the lack of housing options is driving the demand for secondary units such as basement apartments, laneway homes, and in-law suites.