It’s a very common thing to buy a home with a secondary suite in it. It helps with mortgage approval, it provides the owner extra income and it’s a great investment. But, what if you’re interested in renovating your home to include a secondary suite?
In this article, I will share two incentive programs that are on the market. I’ll break down both the provincial program and the federal program. Let’s learn more about these programs and see if either would be right for you.
The BC Housing Secondary Suite program is a great option. Homeowners who qualify will receive up to 50% of the cost of renovations, up to a max of $40,000.
This program provides a forgivable loan, which means a loan that does not need to be repaid if the homeowner follows all of the terms of the program.
For the loan to be forgiven, the new unit has to be located on the same property where the homeowner lives and must be rented at below-market rates, set out by BC Housing for at least 5 years.
This program is approved on a first-come basis until all the funding is used up. You can learn more about this program through the BC Housing webpage.
Before 2024 ended, 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.
Within the statement, it was announced that it will double the loan limit for the Canada Secondary Suite Loan Program to $80,000, and launch the program in early 2025.
This program makes it easier for homeowners to convert unused basements into an apartment or a garage into a carriage home.
Previously the loan amount was $40,000 and now will be $80,000. This is offered through a 15-year loan with a low interest rate of just 2%.
Both programs are fantastic options. It just depends on whether you want a forgivable loan or more money to repay the loan amount. When we chat, we can go through both programs in more detail to see which one serves you better.
These programs are great options if you’re hoping to renovate your home and create a secondary suite. To learn more about these programs, or other options like a purchase plus improvement mortgage, let’s chat! Give me a call at 250-826-3111, apply on my website or contact me through my online contact form to start the conversation today.
Let’s get your application off the ground.
