Equitable Bank Unveils Laneway House Mortgage to Boost Urban Housing Solutions

Toronto, ON – In a bold move to address Canada’s ongoing housing crisis, Equitable Bank has launched the Laneway House Mortgage, a pioneering construction loan designed to help homeowners finance the building of laneway homes and garden suites on their properties. This innovative mortgage product, initially available in the Greater Toronto Area (GTA), Greater Vancouver Area, and Calgary, is set to provide homeowners with a unique opportunity to expand their living spaces or generate additional rental income, all while contributing to the densification of urban centres.

With major cities across Canada grappling with soaring housing costs and limited availability, the introduction of the Laneway House Mortgage comes at a critical time. The nation’s evolving cultural landscape, marked by a rise in multigenerational living, has further underscored the need for creative housing solutions. Equitable Bank’s new offering allows homeowners to maximize the potential of their properties, making it possible to adapt their homes to better suit their needs.

Mahima Poddar, Senior Vice President and Group Head of Personal Banking at Equitable Bank, highlighted the importance of this initiative in addressing the changing housing needs of Canadians. “Making efficient use of space in cities as Canadians’ housing needs evolve is more important than ever. The Laneway House Mortgage provides a critical solution that can help support urban densification and create additional income streams amid affordability challenges, while also allowing homeowners to stay in place,” Poddar stated.

The benefits of the Laneway House Mortgage are multifaceted, offering homeowners a range of advantages, including:

• Property Value Increase: Building a laneway house or garden suite can significantly boost the value of a homeowner’s property.
• Multigenerational Living: Families can build additional living space to accommodate relatives, fostering close-knit, multigenerational households.
• Additional Income Streams: Homeowners can rent out their newly constructed units, providing a steady source of income.
• Urban Densification: By adding more living spaces within existing properties, the Laneway House Mortgage helps improve housing availability in densely populated areas.
• Aging in Place: Homeowners looking to downsize can build smaller, more manageable living spaces while staying within their beloved communities.

The Laneway House Mortgage is available for properties that are either free and clear or combined with new or existing mortgages where Equitable Bank holds the first position. The mortgage is accessible through Equitable Bank’s network of mortgage broker partners, ensuring that homeowners receive tailored advice and solutions to meet their specific needs.

This latest initiative from Equitable Bank reflects its ongoing commitment to supporting affordable housing solutions in Canada. In 2023 alone, the bank funded $3.4 billion in loans for multi-unit residential properties, reinforcing its role as a key player in the efforts to alleviate the nation’s housing shortage. The Laneway House Mortgage builds on this legacy, offering a practical and forward-thinking solution to one of the most pressing issues facing Canadian cities today.

For more information on the Laneway House Mortgage, visit Equitable Bank’s mortgage products page. To learn more about Equitable Bank’s commitment to housing accessibility and affordability, visit their responsibility overview page.