How Garden Suites Are Helping Homeowners in Collingwood

Garden Suites: Boost Income and Address the Rental Crisis

By Attimo Homes

As housing affordability continues to challenge many municipalities across Ontario, communities like Collingwood in South Georgian Bay are looking for innovative solutions to ease the pressure. If you’re a homeowner in this area—or considering buying a property there—you might be interested in a new way to increase your income while contributing to the solution: Garden Suites.

At the heart of this movement is Attimo Homes, a leader in modular housing solutions that is bringing affordable and sustainable Garden Suites to the region. Whether you’re a current homeowner or someone considering a mortgage to invest in a property, the potential benefits of these small but mighty modular homes might surprise you.

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What Are Garden Suites?

A Garden Suite is essentially a small, self-contained home that can be installed in the backyard of an existing property. These units typically range in size but offer everything needed for independent living (think bedroom, bathroom, kitchen & living space!) Attimo Homes has recently launched a 320 sq. ft. model suite in Collingwood, offering homeowners a glimpse into how these units can be seamlessly integrated into their property.

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Why Should Homeowners Consider Adding a Garden Suite?

For homeowners looking to increase property value or generate additional income, Garden Suites are an ideal option. These units open up opportunities for renting out the space to tenants, family members or even as short-term vacation rentals. Here’s why Garden Suites can be a game-changer for both current and potential homeowners:

1. Income Generation: Adding a Garden Suite to your property can create a steady stream of rental income. With the demand for rental housing in Collingwood (and the rest of the country) outpacing supply, there’s no shortage of tenants seeking affordable options.
2. Affordability: Compared to traditional home additions, Garden Suites offer a more cost-effective solution, thanks to their modular design and streamlined construction process. They are built offsite in controlled environments, minimizing weather delays and reducing the risk of unexpected costs.
3. Increase in Property Value: Adding a legal, functional Garden Suite to your property can significantly boost your home’s market value. It’s a desirable feature for prospective buyers, especially in a market where additional living space or rental potential is highly sought after.
4. Flexible Living Solutions: A Garden Suite can evolve with your family’s needs over time. Whether you want a space for an aging parent, a young adult child looking for independence, or simply a private home office, these units offer flexibility that traditional homes might not. Further to that, multigenerational spaces are being incentivized by the government already.

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Financing Your Garden Suite

If you’re thinking of adding a Garden Suite to your property, the good news is that the Government of Canada has recently introduced rules that will make building secondary suites easier. Starting Janurary 15th of this year (2025), homeowners will be able to access up to 90% of their home’s value to build a secondary suite and property value allowances for mortgage insurance will bump up to $2 million. As it stands, here are a few ways you can currently finance a Garden Suite:

• Home Equity Line of Credit (HELOC): Homeowners can tap into their existing home equity to finance the cost of building a Garden Suite. A HELOC allows you to borrow against the equity you’ve built up, typically at a lower interest rate than other types of loans.
• Mortgage Refinance: Depending on how much equity you have in your home, refinancing your mortgage might be another option to fund the construction of a Garden Suite. This can give you access to a lump sum of money, which can then be used for your project.
• Construction Loans: Some lenders offer construction-specific loans, which may be used to fund new home additions, including Garden Suites. These loans typically release funds in stages as the project progresses, making them a flexible option for larger builds. That being said, due to the volatility of the current housing market, getting a high enough property evaluation may prove to be a challenge.
• Consolidate & Downsize: For families looking to ease financial hardship that currently own separate properties, selling those properties to invest in a new home with space for a garden suite can be a cost-effective way to move forward and capitalize on this excellent opportunity.

Using a mortgage broker can help guide you through these options and determine the best approach for your unique situation. Whether you’re refinancing your current mortgage, using your home equity, or considering a loan for a property purchase that includes building a Garden Suite, there are different financial paths to explore.

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Why Modular Housing Makes Sense

Beyond the immediate benefits of rental income or added living space, there are long-term financial and environmental advantages to modular Garden Suites. These homes are built using sustainable materials and energy-efficient features, meaning lower utility costs for tenants and a smaller carbon footprint. Plus, their modular nature makes them relocatable or resalable, adding flexibility to your investment.

Speaking to the success of this new endeavour, the owner of Attimo Homes, Thomas Vincent says: “We’ve been overwhelmed at the response from the Collingwood Community about the quality and spaciousness of the model Garden Suite that Attimo has put in the Home Hardware parking lot.? The Garden Suite is such a great living alternative for people wishing to rent in the Town at a terrific monthly rate.”

At the local level, Attimo Homes is collaborating with the Town of Collingwood’s Rapid Additional Residential Unit (ARU) Initiative 2.0. This initiative aims to educate homeowners about how they can contribute to solving the local housing crisis by adding affordable rental units like Garden Suites to their properties.

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Explore the Possibilities

You can visit Attimo Homes’ fully furnished Garden Suite now on display at the Home Hardware Building Centre parking lot at 6th and High Street in Collingwood. If you’ve ever considered ways to generate additional income or enhance the value of your home, now is the perfect time to explore how a Garden Suite might fit into your future plans.

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Interested in Financing Your Garden Suite?

As a brokerage with experience in helping homeowners navigate investments like Garden Suites, Buckley Mortgage Broker can provide you with personalized advice and financing options tailored to your needs. Whether you’re looking to purchase a new property with backyard space or maximize your current home’s potential, we are here to help you take the next step.

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Reach out to us today to get started and learn how you can access the value of a Garden Suite in your own financial dreams.