The trend of multi-generational housing in Canada is rising as families look for cost-effective solutions to accommodate aging parents, adult children, or other relatives. This trend is driven by a combination of soaring housing costs, an aging population, and a cultural shift toward shared living arrangements. Real estate professionals who are knowledgeable about zoning laws, secondary suite programs, and mortgage options can provide critical support to clients exploring these arrangements.
Why Multi-Generational Housing is Becoming More Popular
Multi-generational living offers numerous benefits, including shared household expenses, built-in childcare or senior care, and the easy availability of practical support for all members. In high-cost cities like Toronto and Vancouver, housing prices have made it increasingly difficult for young adults to enter the real estate market independently. At the same time, seniors are looking for alternatives to expensive retirement homes, making multi-generational living an appealing option. This arrangement can also be a sustainable way of living, optimizing space usage and reducing overall living costs.
Zoning and Land Use Considerations
Zoning laws are a critical consideration when it comes to multi-generational housing. Regulations vary significantly between provinces and municipalities, influencing whether a property can accommodate multiple families or separate living units.
Real estate professionals need to be familiar with these regional variations and guide clients through the specific zoning requirements and permit processes in the municipality and province they are looking to buy within.
Ontario
Many municipalities, including Toronto and Ottawa, have increasingly flexible zoning that permits secondary suites, including basement apartments, in single-family residential areas. The provincial government has also mandated as-of-right permissions for up to three units per residential lot (i.e., main house + two accessory units) to increase housing supply. However, these units must meet safety, size, and parking regulations.
British Columbia
Cities like Vancouver, Victoria, and Surrey have robust programs for secondary suites and laneway houses. Vancouver’s zoning bylaws allow for secondary units, like basement suites and laneway houses, which can accommodate extended family members. Additionally, duplex zoning is available in many neighbourhoods, expanding options for multi-generational setups.
Alberta
Calgary and Edmonton have made significant strides in allowing secondary suites. Calgary, in particular, has eased restrictions with its Secondary Suite Program, enabling homeowners to develop basement suites and backyard units such as garage suites. These changes are part of the city’s strategy to increase affordable housing options.
Quebec
In Montreal and other municipalities, zoning regulations for multi-generational housing can vary. Properties like duplexes and triplexes are often well-suited for multi-family living, but converting single-family homes into multi-unit properties can require additional permits and compliance with stringent building codes.
Nova Scotia
In Halifax, the Secondary Suites Bylaw has been implemented to encourage the development of secondary units within existing residential properties, helping to increase affordable housing options.
Mortgage Considerations for Multi-Generational Living
Financing multi-generational homes can be more complex than standard single-family properties. Traditional mortgages might not always be suitable, especially if the property includes separate units or is classified as a multi-family dwelling. Real estate professionals should recommend a mortgage broker familiar with these alternative types of financing.
Multi-Generational Mortgages
Some Canadian lenders offer specialized mortgage products tailored to multi-generational families. These mortgages often come with more flexible income qualification criteria, considering the combined incomes of multiple family members.
Co-Signing and Joint Mortgages
Co-signed or joint mortgages can help families increase their purchasing power. This setup allows multiple family members to pool their resources, which can result in more favourable mortgage terms. However, all parties need to fully understand the legal and financial implications, including shared liability.
Multi-Unit Residential Mortgages
If a property is explicitly set up as a multi-unit residence, including duplexes and triplexes, lenders typically require a multi-unit mortgage. These mortgages typically have different qualification criteria, including higher down payments and stricter scrutiny of rental income.
Reverse Mortgages for Seniors
For families looking to integrate aging parents into a multi-generational home, reverse mortgages can be a viable option. Seniors can tap into the equity of their existing homes to fund renovations or contribute to the purchase of a shared property. However, there are financial risks associated with this strategy, so all parties need to be well informed.
Challenges to Consider
While multi-generational living offers numerous benefits, it also presents challenges that clients need to be prepared for.
Privacy Concerns
Sharing a home with extended family members can lead to privacy issues. Ensuring adequate space and separate living areas is essential for maintaining harmony. Real estate professionals may have challenges finding suitable properties which provide all family members with the level of privacy they require.
Space Requirements
The property must be large enough to accommodate the needs of all generations. This may involve finding homes with multiple bedrooms, extra bathrooms, or flexible living spaces that can be converted as needed. This may limit the options available for real estate professionals to suggest.
Lifestyle Adjustments
Families may need to navigate differing lifestyles, routines, and expectations. Agents can advise clients to consider this, and suggest how different properties can either increase or minimize these changes.
Despite the challenges of such transactions, real estate professionals can add value by helping clients consider these factors and identify properties that meet the unique needs of multi-generational living arrangements.
