Is the Canada Secondary Suite Loan Program available?

No. Budget 2025 says the program was not yet operational and will not be implemented. The federal route that exists is CMHC-insured refinancing of up to 90% of the home's value after the suite is built.

Is the Ontario Renovates program still available for secondary suites?

In some regions. Waterloo Region offers up to $25,000 and Simcoe County up to $50,000 as forgivable suite loans in 2026, while Ottawa and Hamilton list only repair help. Each region runs its own program.

Can I get a CMHC loan to build a secondary suite?

CMHC insures refinancing to add a suite: up to 90% of the home's value after the work, under $2 million, over up to 30 years. You apply through a lender, and the suite must be legal and not rented for under 90 days at a time.

Is there a tax credit for building a granny suite in Canada?

Yes, the Multigenerational Home Renovation Tax Credit: 14.5% of up to $50,000 in costs, a maximum of $7,250, when the unit lets a senior or an adult with a disability live with a relative. A separate building on the lot qualifies.

Financing and insurance

Secondary suite loans and grants in Canada: what still exists in 2026

By Jonathan Kennedy, cabin owner and tiny home rental owner · Last reviewed October 28, 2026

The Canada Secondary Suite Loan Program will not happen: Budget 2025 says the $80,000 loan at 2% announced in 2024 never became operational and will not be implemented. What does exist in October 2026 is CMHC-insured refinancing up to 90% of your home's value after the suite is built, the Multigenerational Home Renovation Tax Credit of up to $7,250, and a few local Ontario Renovates suite loans of $25,000 to $50,000.

You read about the federal $80,000 suite loan, priced a garden suite around it, and then couldn't find anywhere to apply. That's because there never was one. Here's what's real, as of October 28, 2026, checked on each program's own page.

What happened to the Canada Secondary Suite Loan Program?

It was cancelled before it launched. The 2024 Fall Economic Statement promised loans of up to $80,000 at 2% over 15 years for a basement apartment or a laneway home, starting in early 2025 (Finance Canada). Budget 2025 then said the program "is not yet operational" and "will not be implemented", because it overlapped with the new insured-mortgage refinance rules (Budget 2025, Annex 3). There was never an application, a portal or a list of lenders.

What federal help is there for a secondary suite?

Two things, and neither is a grant.

CMHC-insured refinancing. Since January 15, 2025, you can refinance an insured mortgage to add a suite, borrowing up to 90% of the home's value after the work, for a home worth under $2 million, over up to 30 years (Finance Canada). CMHC's product covers basement suites, in-law apartments and laneway homes, up to four units in total; the suite has to be self-contained and legal, and it can't be rented for less than 90 days at a time (CMHC Refinance). You apply through a lender, and progress advances can pay out as the suite is built.

The Multigenerational Home Renovation Tax Credit. It refunds 14.5% of up to $50,000 in costs, a maximum of $7,250, for building a self-contained unit, including a separate building on the same lot, so a senior or an adult with a disability can live with a relative (CRA). It's claimed once per qualifying person, in the year the work ends, and they must move in within 12 months (CRA eligibility). The rate shown is for the 2025 tax year.

Our take: if a parent is moving into the suite, the tax credit is the one real federal grant-like benefit here, and owners miss it because it's filed on the tax return, not applied for. Keep every invoice from the build.

Which suite programs are open in 2026?

Program	Status (October 2026)	What it offers
CMHC Refinance	Available through lenders	Up to 90% of the as-improved value, under $2 million, 30 years
Multigenerational Home Renovation Tax Credit	In effect	14.5% of up to $50,000, max $7,250
Region of Waterloo (Ontario Renovates)	Open, ongoing intake, limited funds	Up to $25,000, forgiven over 15 years; rent caps apply
County of Simcoe Secondary Suites Program	Open, year-round intake	Up to $50,000 per unit, including garden suites, forgiven over 15 years
Calgary suite amnesty	Open until December 31, 2026	Waives development permit charges and registration fees
Canada Secondary Suite Loan Program	Cancelled (Budget 2025)	Never launched
BC Secondary Suite Incentive Program	Closed March 30, 2025	Was 50% of costs, max $40,000
Calgary secondary and backyard suite incentives	Closed September 28, 2026	Was up to $10,000 and $15,000 plus servicing
Nova Scotia Secondary and Backyard Suite Incentive	Ended March 2026	Was up to $40,000
Toronto Affordable Laneway Suites Program	Discontinued	A 20-year development charge deferral remains

Sources: CMHC, CRA, Region of Waterloo, County of Simcoe, Calgary, Budget 2025, Province of BC, West Hants staff report on the Nova Scotia program, Toronto.

Is Ontario Renovates still giving money for secondary suites?

In some places. Ontario Renovates is the repair part of a provincial housing program that each regional service manager runs locally, and its provincial funding drops to $22.0 million in 2027 to 2028 (Ontario). Waterloo Region and Simcoe County still fund suites: Waterloo up to $25,000 for homes assessed at $600,000 or less, with rents capped (for example $1,198 a month for a one-bedroom in 2026), and Simcoe up to $50,000 with rent held at the area's average for 15 years (Waterloo application; Simcoe application). Ottawa's and Hamilton's current Ontario Renovates pages list only repair and accessibility help (Ottawa; Hamilton). Ask your regional or county housing office; the terms differ in every area.

Is it worth taking a forgivable suite loan?

Only if you'd rent the suite at or below the program's rent cap anyway. The Waterloo and Simcoe loans are forgiven over 15 years as long as you keep to the terms, and you repay the balance if you sell early (Waterloo). For a suite for family, or one you'd rent at market rates, the tax credit or a refinance usually fits better.

How do I pay for a garden suite without a grant?

Most owners use their home's equity: a CMHC refinance, a home equity line of credit, or a construction loan from their bank. A site-built garden suite costs $180,000 to $400,000 by our 2026 estimate, so a forgivable loan of $25,000 to $50,000 covers part of it at most. Ontario also exempts most backyard suites from development charges, and Toronto defers them for 20 years; see our garden suite guide for the rules.

Questions people ask

Is the Canada Secondary Suite Loan Program available?: No. Budget 2025 says the program was not yet operational and will not be implemented. The federal route that exists is CMHC-insured refinancing of up to 90% of the home's value after the suite is built.
Is the Ontario Renovates program still available for secondary suites?: In some regions. Waterloo Region offers up to $25,000 and Simcoe County up to $50,000 as forgivable suite loans in 2026, while Ottawa and Hamilton list only repair help. Each region runs its own program.
Can I get a CMHC loan to build a secondary suite?: CMHC insures refinancing to add a suite: up to 90% of the home's value after the work, under $2 million, over up to 30 years. You apply through a lender, and the suite must be legal and not rented for under 90 days at a time.
Is there a tax credit for building a granny suite in Canada?: Yes, the Multigenerational Home Renovation Tax Credit: 14.5% of up to $50,000 in costs, a maximum of $7,250, when the unit lets a senior or an adult with a disability live with a relative. A separate building on the lot qualifies.