Various levels of government have implemented secondary suite incentive programs to increase the supply of affordable rental housing. These initiatives are aimed at encouraging homeowners to convert existing spaces into rentable units or create new ones, for long-term rentals and housing.
Budget 2024: Canada Secondary Suite Loan Program
In Budget 2024, the Canadian government introduced the Canada Secondary Suite Loan Program, under 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. By easing financial barriers, the program aims to make it more feasible for homeowners to contribute to the rental market, especially in urban areas where housing demand 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 have also launched similar programs.
British Columbia
In British Columbia, the Secondary Suite Incentive Program (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). To qualify, the suite must be rented at below-market rates for a minimum of five years. This initiative is part of BC’s Homes for People action plan.
Saskatchewan
The Saskatchewan Secondary Suite Incentive (SSI) Grant Program, launched in January 2024, offers homeowners up to 35% of the cost of constructing a new secondary suite, with a maximum grant of $35,000. The grant is designed to help homeowners generate supplementary income while increasing the availability of rental units in Saskatchewan communities. The program also ties in with 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 Program offers loans to help build a secondary or backyard suite on a primary residence. Funding covers up to 50% of eligible project costs, with a cap of $40,000. The applicant must cover the remaining expenses. This support is provided as a forgivable loan with terms of up to five years. Additional funding may be available for multiple secondary or backyard suites, subject to municipal approval.
Newfoundland and Labrador
The Secondary and Basement Suite Incentive Program in Newfoundland and Labrador supports affordable housing by funding homeowners to create new, self-contained rental suites at below-market rates. Eligible homeowners can receive up to 50% of renovation costs, capped at $40,000, as a forgivable loan. 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 in Alberta offer their own incentive programs.
Calgary
Calgary’s Secondary Suite Incentive Program, approved in 2023 and operational in 2024, provides financial assistance for the development of 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
As of May 2024, Cold Lake passed its Secondary Suite Development Incentive Program. An incentive of $5,000 is available for either developing a new secondary suite or legalizing an existing one built without permits.
These incentive programs, at all levels of government, are subject to change; it is important to stay updated as new ones are introduced or discontinued.