Canadian Secondary Suite Incentive Programs

Various government levels have implemented secondary suite incentive programmes to increase the supply affordable rental housing. These initiatives encourage homeowners to convert their existing spaces into rentable apartments or create new ones for long-term housing and rentals. 

Budget 2024: Canada Secondary Suites Loan Program

The Canadian government announced the Canada Secondary Suite Loan Program in Budget 2024. Housing, Infrastructure and Communities Canada*, as part of a broader housing strategy. This program offers homeowners up to $40,000 in low-interest loans to create additional rental units, such as basement suites or laneway houses​. The program will make it easier for homeowners to participate in the rental market by lowering financial barriers. This is especially true in urban areas, where the demand for housing is high. This initiative aligns with recent zoning reforms across major cities, making it easier to add density to residential properties​.

* Note that as of June 20, 2024, Infrastructure Canada (INFC) is now officially the Department of Housing, Infrastructure and Communities Canada (HICC). 

Provincial Programs 

Some provinces also have similar programs.

British Columbia

In British Columbia the Secondary Suite Incentive (SSIP),, initiated in 2023 and expanded in 2024, provides up to $40,000 in forgivable loans for creating new secondary suites or garden suites​ (BC Housing)​. The suite must have been rented below market rates for at least five years to qualify. This initiative is part of BC’s Homes for PeopleAction plan

Saskatchewan

The following are some of the ways to get in touch with each other: Saskatchewan Secondary Suite Incentive Program (SSI Grant)Launched in January 2024 and offering homeowners up to 35% off the cost of building a new second suite, with a grant maximum of $35,000, this program offers homeowners a maximum of 35% off of the cost. The grant is intended to help homeowners earn a supplementary income and increase the availability of rental properties in Saskatchewan communities. The program is also linked to the Provincial Sales Tax (PST) Rebate for New Home Construction, to increase affordability for new builds​​.

Nova Scotia

Nova Scotia’s Secondary and Backyard Suite Incentive ProgrammeLoans are available to help build an additional or backyard suite at a primary residence. The loan covers up 50% of the eligible project costs. The applicant is responsible for the remaining costs. This support comes in the form of a forgivable, five-year loan. Additional funding may be made available for multiple backyard or secondary suites, subjected to municipal approval.

Newfoundland and Labrador

You can also find out more about the following: Secondary and Basement Apartment Incentive ProgrammeNewfoundland & Labrador promotes affordable housing by providing homeowners with funds to build new, self-contained rentals at rates below market. A forgivable mortgage of up to $40,000 can be given to eligible homeowners who are able receive 50% of the renovation costs. This loan doesn’t require repayment if the suite is on the homeowner’s property and rented at NLHC-defined below-market rates for at least five years.

Alberta

Various municipalities offer their own incentive program in Alberta.

Calgary

Calgary’s Secondary Suite Incentive ProgramThe financial assistance provided by the program, approved in 2020 and operational in 2024 will help to develop new secondary suites. This initiative is a key part of Calgary’s housing strategy. Homeowners are encouraged to apply for the program after securing the necessary building permits and completing a mandatory eLearning course on suite safety and compliance​​.

Edmonton

Edmonton’s Secondary Suite Grant Program, operational since 2009, provides grants of up to $20,000 to homeowners for creating or upgrading secondary suites​. 

Cold Lake

Cold Lake will have passed its ‘By May 2024’ date. Secondary Suite Development Incentive program. The incentive of $5,000 can be used to build a new suite or to legalize one that has been built without permits.

These incentive programs at all levels of the government are subjected to change. It’s important to stay informed as new ones or discontinued ones are introduced.