RBC financing innovation creates new options for Canada's homeowners and housing market

RBC is simplifying the process for homeowners to build, retrofit, and renovate their property, helping add to Canada's housing stock

TORONTO, July 3, 2024 /CNW/ - Royal Bank of Canada (RBC) is offering more financing options to support Canadian homeowners who wish to leverage the potential of their property. As of June 28, homeowners can access RBC's enhanced residential construction mortgage program to finance the addition of laneway homes, garden suites, modular units, and other auxiliary dwelling units on their property, or to redevelop their single-family home into duplexes, triplexes, or multiplexes (subject to municipal zoning).

Many homeowners want to provide family members with a supportive housing option, while others may be looking to supplement their income with a rental property. This update to RBC's residential construction mortgage program increases the possibility for homeowners and home builders to work together to adapt a property for these kinds of needs. Interested homeowners should speak to an RBC Mortgage Specialist to determine if this new capability is right for their situation.

"In the past, homeowners have had limited access to financing that could help them redevelop their home or property in meaningful ways," said Leah Robinson, vice president, Home Equity Policy and Regulatory Management. "Through the enhanced residential construction mortgage program, RBC is unlocking a new capability for homeowners to change their property to better suit their needs and help create more housing units for Canadians who need them."

Secondary suites and multi-unit properties have become increasingly popular as homeowners look to add value to their properties and municipalities across Canada have amended zoning bylaws to allow for this kind of development. The federal government has also shown its support with the recent federal budget, which included plans to launch the Canada Secondary Suite Loan Program that will allow homeowners to access up to $40,000 in low interest loans for building secondary suites.

RBC's enhanced residential construction mortgage program also provides a unique opportunity for Canadian home builders to provide their expertise and advice to interested homeowners.

"We're excited to support clients who decide to embark on this journey," said Robinson. "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."

Today's news follows through on RBC's commitment to provide additional retail lending support to assist homeowners to redevelop single-family homes into multi-family homes, as part of the acquisition of the former HSBC Canada.

To learn more about the RBC construction mortgage, visit the RBC Construction Mortgage web page.

About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 98,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 18 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.

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SOURCE RBC Royal Bank