Been thinking about a secondary suite in your primary residence for generating monthly rental income? Well, here is some great news! To help with the financing of renovations, check out the Secondary Suite Incentive Program.
The Secondary Suite Incentive Program (SSIP) will help homeowners create affordable housing in their communities. The program will provide money to help homeowners create a new secondary suite on their property to be rented out for below market value.
Homeowners who qualify will receive up to 50% of the cost of renovations, up to a maximum of $80,000. The program will provide a rebate in the form of a forgivable loan—a loan that does not need to be repaid if the homeowner follows the terms of the program.
For the loan to be forgiven, the new unit must be located on the same property where the homeowner lives and must be rented out at below market rates, set by BC Housing, for at least five years.
Earlier this month, Canada had just doubled the Secondary Suite Loan limit from $40,000 to $80,000, making it easier than ever to add a secondary suite to your home! The federal government also unveiled the Secondary Suite Refinance Program, set to launch January 15, 2025, which will allow homeowners to refinance up to 90% of their property’s value (capped at $2 million) to add up to four rental units—such as basement apartments, in-law suites, or laneway homes.
Interested? For more information see https://secondarysuite.bchousing.org/
Below is an excerpt from the Department of Finance news release which can be found here .
December 10, 2024 – Department of Finance Canada
“By making it easier for homeowners to add secondary suites to their existing homes, we can build the supply of homes Canada needs to make housing more affordable for every generation.
Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, and the Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities, announced the 2024 Fall Economic Statement will double the loan limit for the Canada Secondary Suite Loan Program to $80,000, and launch the program in early 2025. This will make it easier for homeowners to convert an unused basement into a rental apartment or a garage into a laneway home to increase density in our communities.
By doubling the loan limit from $40,000 to $80,000, more homeowners will be able to access the low-interest financing they need to add a secondary suite to their home. This will make it cheaper for homeowners to do so through 15-year loan terms at a low-interest rate of just 2 per cent.
In addition to the Secondary Suite Loan Program, homeowners will also be able to refinance with insured mortgages to help cover the cost of adding a secondary suite, starting January 15, 2025. Specifically, lenders and insurers will begin allowing mortgage refinancing of up to 90 per cent of the post-renovation value of their home up to $2 million, amortized over a period of up to 30 years. Homeowners will be able to make use of both the loan program and mortgage financing to help cover the cost of adding a secondary suite.
Beyond helping homeowners increase Canada’s supply of rental housing, we’re also making the boldest mortgage reforms in decades to unlock homeownership for Canadians. Starting December 15, 2024, new mortgage rules will lower down payment requirements for homes valued between $1 million and $1.5 million, and expand the availability of 30-year amortizations to reduce monthly mortgage payments for all first-time home buyers and all purchasers of new builds.
This is just one of many measures in the 2024 Fall Economic Statement to build more homes, faster. Alongside further investments in our ambitious housing plan, we’re also putting more money in Canadians’ pockets and investing in innovation, productivity, and power generation, to ensure Canadians have good-paying job opportunities that help them get ahead.”
For more information, see the official news release at: