1. Canada Secondary Suite Loan Program (Federal Low-Interest Loan)

The federal government is launching a low-interest loan program designed to help homeowners build or renovate secondary suites — including garden suites, basement apartments, laneway homes, and other accessory dwelling units.

Program highlights

• Up to $80,000 in low-interest loans.

• Fixed-rate (~2%) with long repayment terms (up to ~15 years).

• Can be used for construction or significant upgrades to create a self-contained secondary unit. Canada+1

👉 Want help checking eligibility or applying?
[Contact Us — Assistance With Suite Loan Programs]

2. CMHC Mortgage Refinancing for Secondary Suites

Canada Mortgage and Housing Corporation (CMHC) supports refinancing programs that allow homeowners to refinance their mortgage in a way that includes the value of the planned secondary unit.

Benefits

• Access home equity at lower rates.

• Increase total loan value based on the property’s post-construction value.

• Longer amortization possible, reducing monthly costs. Canada Mortgage and Housing Corporation

👉 Want guidance on refinancing your property for a secondary suite?
[Contact Us — Refinancing for Construction]

3. Municipal Secondary Suites Funding or Forgivable Loans

Many local Ontario jurisdictions offer forgivable loans or grants to encourage the creation of legal secondary units, often under programs aimed at increasing affordable rental housing.

Examples

• Region of Waterloo Secondary Suite Funding — ongoing funding for secondary suite creation, supported by provincial/federal housing initiatives. Region of Waterloo

• Leeds & Grenville Secondary Suite Programs — forgivable loans for homeowners constructing a new secondary suite; units must often be rented at affordable rates. Leeds Grenville

• Similar municipal funding may exist in other areas, often tied to broader housing affordability goals.

👉 We can help identify local municipal incentives for your property:
[Contact Us — Local Incentive Search]

4. City-Level ADU Incentive Programs

Some cities offer additional dwelling unit (ADU) incentives to reduce costs, like permit fee rebates and forgivable loans tied to affordability requirements.

Example

• Hamilton Additional Dwelling Unit and Multi-Plex Incentive Program

  • Rebates on building permit fees (up to a set amount).

  • Forgivable loans for eligible units meeting affordability rules. City of Hamilton

👉 Not sure if your city has an ADU incentive?
[Contact Us — City Incentive Review]

5. Secondary Suite Incentive Programs (Provincial/Local)

Some programs offer partial funding or loans specifically when creating secondary units as part of affordable housing strategies.

For example:

• Incentive programs may provide up to $40,000 in forgivable loans covering a portion of construction costs for new secondary suites (basements, laneway homes, etc.) if certain eligibility criteria are met — like renting at below-market rates. VIGO HOUSE CANADA - Building the Future

👉 Check eligibility and application help here:
[Contact Us — Secondary Suite Incentives]

6. Energy-Efficiency & Tax Credits (Stackable Savings)

While not direct construction rebates for the suite itself, energy incentive programs and tax credits can lower overall costs if your project includes qualifying efficiency upgrades:

Examples

• Multigenerational Home Renovation Tax Credit (Federal): Up to $7,500 for creating or renovating a secondary dwelling to house seniors or family members with disabilities. WealthTrack

• Canada Greener Homes Grants: Assistance for making energy-efficient upgrades (insulation, heat pumps, windows) that could also be part of your ADU or suite project. Middle Housing Finance Hub

👉 Want to combine rebate programs for maximum savings?
[Contact Us — Incentives & Tax Credits]

7. Secondary Suite Renovation Programs

Some regions offer renovation-focused funding for existing second units to bring them up to code or make them legal.

Example

• Peel Region’s Second Unit Renovation Program previously offered forgivable loans (now under review), with additional funds available if renting to a region-referred tenant. Peel Region

👉 Check renovation-focused funding opportunities:
[Contact Us — Renovation Funding Help]