The Canada Secondary Suite Loan Program, introduced in the 2024 Fall Economic Statement and updated in December 2024, provides homeowners with low-interest loans of up to $80,000 to create legal secondary suites, such as basement apartments, laneway suites, and garden suites.
This initiative helps address Canada’s housing shortage by enabling homeowners to add rental units while making the most of their existing space.
Program Highlights
Who Can Apply?
Homeowners looking to build or renovate a secondary suite for long-term rental use. Eligible projects include:
- Renovating existing secondary suites (e.g., basement apartments)
- Building new units such as garden or laneway suites
- Converting garages into legal rental spaces
All projects must comply with local zoning and building codes.
Loan Amount & Terms
- Up to $80,000 at a low 2% interest rate
- 15-year repayment period
- Designed to support affordable housing solutions
How Kitchen Fusion Can Help
At Kitchen Fusion, we specialize in transforming living spaces, including basements, secondary suites, and home additions. Whether you’re planning a legal basement apartment or a full secondary suite, our team ensures your project meets all regulations and maximizes your home’s potential.
Contact us today for a consultation and let’s bring your vision to life with the support of the Canada Secondary Suite Loan Program.
Frequently Asked Questions About the Canada Secondary Suite Loan Program
1. What is the Canada Secondary Suite Loan Program?
This government-backed initiative provides low-interest loans of up to $80,000 to homeowners looking to build or renovate secondary suites, such as legal basement apartments, garden suites, or laneway suites. The program aims to increase rental housing availability while helping homeowners manage construction costs with affordable, 15-year repayment terms
2. Who is eligible to apply?
Any homeowner in Canada who plans to create a long-term rental unit can apply for this loan.
3. What types of projects qualify?
Eligible projects include:
- Renovating existing secondary suites (e.g., basement apartments)
- Building new garden suites or laneway suites
- Converting garages into legal rental spaces
All projects must comply with local zoning and building codes.
4. What is the interest rate?
The loan is expected to have a 2% interest rate, though final details will be confirmed when applications open.
5. What are the conditions for the loan?
- The unit must be used for long-term rentals, not short-term stays.
- Projects must follow local zoning laws and building codes.
- The goal is to increase affordable housing options.
6. Do garden suites and laneway suites qualify?
Yes, newly built garden suites and laneway suites are eligible under this program.
7. How is this program different from other housing initiatives?
Unlike grants or tax credits, this program provides direct low-interest loans, making it easier for homeowners to fund construction upfront and repay over time.
8. What would my monthly repayment be on an $80,000 loan?
At 2% interest over 15 years, monthly payments would be approximately $515. Over the loan term, total interest paid would be about $12,700.
9. How do I apply?
Application details will be available on the Government of Canada’s housing and finance department websites. We’ll also update this page with new information as it becomes available.
10. How can I make sure my project qualifies?
Working with professionals like Kitchen Fusion ensures your secondary suite meets municipal requirements, adheres to building codes, and aligns with the program’s criteria—maximizing your chances of loan approval.
11. Are there zoning restrictions?
Yes, all projects must comply with local zoning laws, especially those governing accessory dwelling units (ADUs) such as garden suites and laneway suites. Obtaining a building permit will be required.
12. Do I need a rental agreement in place?
A rental agreement is not required at the time of application, but the unit must be designated for long-term residential use to qualify.
Looking to build a secondary suite? Contact Kitchen Fusion today to explore your options and get expert guidance on maximizing your home’s potential under this program.