Why More Homeowners Are Building ADUs
Accessory Dwelling Units (ADUs) are quickly becoming one of the smartest ways to add space, value, and flexibility to a property. Whether you're thinking about a rental suite, guest house, or extra room for family, an ADU can offer long-term benefits without the need to move or drastically change your existing home.
What Is an ADU?
An ADU is a self-contained living space on the same property as a single-family home. It can be a basement apartment, garage suite, backyard house, or even an over-garage unit. ADUs have their own entrance, kitchen, bathroom, and sleeping area, making them fully functional mini-homes.
Why Build One?
1. Rental Income
With rising housing costs, many homeowners are using ADUs to generate passive income. A legal rental suite can help offset mortgage payments or become a long-term investment.
2. Multi-Generational Living
ADUs are perfect for aging parents, adult children, or extended family. They offer privacy and independence while keeping loved ones close.
3. Increase Property Value
A well-designed ADU adds usable square footage and resale value, especially in cities like Toronto where space is at a premium.
4. Flexible Use
Today’s ADU could be a home office or studio. Tomorrow, it could be a rental or in-law suite. They’re adaptable to changing needs.
Designing a Smart ADU
The key to a successful ADU is maximizing function within a compact footprint. Our team focuses on efficient layouts, natural light, and thoughtful finishes, making even a small space feel spacious and livable. Whether you're working with an existing garage or starting from scratch, we’ll help guide you through zoning, permits, and design.
What Is the CMHC Refinance Mortgage Loan Insurance Program?
The CMHC’s Refinance Mortgage Loan Insurance program helps homeowners access up to 80% of their property’s current value by refinancing their existing mortgage. These funds can be used for renovations, debt consolidation, or more recently - the construction of secondary suites and ADUs.
By insuring the loan, CMHC reduces risk for lenders, which may allow borrowers to access better interest rates and more flexible terms.
New in 2024: Up to $80,000 for Secondary Suites
As part of Canada’s 2024 Fall Economic Statement, the government announced low-interest loans of up to $80,000specifically to help homeowners build secondary units, such as basement apartments, garden suites, or laneway homes.
This initiative is designed to:
Support multigenerational living
Create affordable rental housing
Help homeowners boost property value and income
Need Help Getting Started?
At Level Custom Build, we specialize in designing and building ADUs tailored to your needs and we’ll help you understand what’s possible for your home, your lot, and your budget.
Contact us today to learn more about building an ADU and how to take advantage of this financing opportunity.