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As of October 17, 2018, it is legal in Canada to buy and use cannabis, including growing up to 4 plants in your house for personal use in most provinces. 

Canada's legalization of a plant known to offer many health, medicinal and recreational benefits, doesn't come without it's opposing arguments of potential risk factors. For the purpose of this blog, we will discuss risks pertaining to the mortgageability of your home and resale. 

Stigma 

In the past, full grow ops have been stigmatized by illegal activity and potential health risks inside the home, including illegal electrical alterations to evade authorities who monitor unusually high utility usage and improper handling and disposal of chemicals in the home or on the property. 

Now that growing a limited number of plants inside the home is legal, the stigma may improve. However, a Canadian survey by Zoocasa revealed 47% of respondents said even a legal amount of marijuana grown in a home would reduce their interest in a property. 

Mortgage lenders may be concerned with stigma incase the borrowers default on their loan and the property is foreclosed upon. Stigmas can reduce the marketability of the home and decrease the chances of resale.  

Moisture 

Cannabis plants require moisture and omit moisture in the air, far greater than a typical houseplant. Despite the limit to the number of legal plants allowed to be grown for personal use in one's home, there is currently no regulation on the size of each plant. Larger plants mean increased moisture. 

Mortgage lenders can be concerned with moisture because of the negative impact it can have on the building.

Indoor Air Quality and Mould 

One of the biggest risks to your home is the air quality and potential mould as a result of the increased moisture. The National Collaborating Centre for Environmental Health says "plant limits alone are insufficient to mitigate the indoor air quality risks of indoor cultivation". Improper cultivation, hydroponics, and air circulation can result in a compromised environment with serious health implications from poor air quality and mould.

Mortgage lenders and insurers want to lend mortgages to safe properties, including plumbing, water potability and of course air quality. Health Canada and Canadian Mortgage Housing Corporation both rank air quality as top priority to maintaining a healthy home. 

Pests and Improper Use of Pesticide 

Plants inevitably attract pests, which can result in an infestation in the home. Any pesticide used should be properly administered by a professional. Issues surrounding pests and pesticides could decrease the interest in an otherwise salable home. 

Electrical and Fire Hazards

There is lacking data on cannabis related house fires, however there are many hazards connected with home growing. These hazards may be related to inappropriate or improperly installed equipment, the presence of combustible materials and, specifically, illegal cannabis processing as reported by the NCCEH (2018). 

Home Insurance

Post-Blog Update: It's recently come to my attention that certain home insurance policies may restrict or prohibit cannabis growth inside the home or on the property. Be sure to check with your home insurance provider to ensure you're compliant with your current policy or amend it as required for your needs.

The Bottom Line 

Growing cannabis is a personal, and now a legal, choice in Canada. There may be risk factors from a home mortgageability and resale standpoint. With any personal choice, one must weigh the benefits and drawbacks to make the best overall decision. 

Resources

Be sure to do your own research and contact government and health departments for facts.

Got mortgage questions? I always want to hear from you! 

Sarah Nixon-Miller, Mortgage Broker

Toll-free Across Canada 1-844-315-6609
sarahnm@mortgagegroup.com

Disclaimer: This blog is neither in favour or opposition of cannabis use or growing it in your home. Please consult your local government, medical practitioner and do your own research.