FlexoBuild homes qualify for many government incentive and financial relief programs for secondary living accommodations. The following information is an interpretation of these incentives. Direct contact with the various government departments for confirmation of eligibility is encouraged before you commit to any new building project.
The Canada Secondary Suite Loan Program is a government initiative providing low-interest loans of up to $80,000 to homeowners. It supports the creation of secondary suites, such as basement apartments, garden suites, laneway suites, or garage-to-ADU conversions. This program aims to increase rental housing availability while helping homeowners offset construction costs with 15-year repayment terms.
Homeowners across Canada are eligible to apply, provided the loan is used to create a long-term rental unit.
Building new units, such as garden suites or laneway suites. All projects must meet local zoning and building code requirements. (We can help guide you through this process!)
The interest rate is estimated at 2%, with official terms expected to be released soon.
The secondary suite must be used for long-term rental purposes, not short-term vacation rentals. Homeowners must comply with local zoning laws and meet all building code requirements. The unit should contribute to affordable housing.
Yes, all FlexoBuild models are included in the program, as it promotes a variety of housing options to increase the rental supply.
This program offers direct, low-interest loans to cover construction costs, unlike tax credits or grants. It provides homeowners with an accessible and manageable way to create affordable rental spaces, which can help offset the loan repayments.
If structured as an installment loan with a 2% interest rate, monthly repayments would be approximately $515 over a 15-year term. Over this period, total interest paid would be about $12,700, making this an affordable financing option.
Details about the application process will be available on the Government of Canada’s housing or finance department websites. Stay updated by visiting these sites or contacting local housing authorities. Feel free to reach out to us, and we’ll add you to our notification list for updates!
Partner with professionals like one of FlexoBuild's General Contracting partners, part of the FlexoConnect program to ensure your project meets local regulations, complies with building codes, and aligns with the program’s requirements. This increases the chances of loan approval and a successful build.
Yes, projects must comply with local zoning laws, particularly those governing ADUs like garden and laneway suites. Obtaining a building permit follows the standard process, so contact us for guidance on navigating local permitting requirements. Visit this page to see if the guidlines are listed for your local municipality.
The Government of Canada has introduced a new insured mortgage refinancing product to help homeowners create additional living spaces, such as secondary suites, for family or rental purposes. This initiative addresses housing needs in high-demand areas like Toronto by making it easier and more affordable to add secondary units. The program is insured through CMHC, providing lenders with greater flexibility to offer this option.
During a recent press conference, Deputy Prime Minister and Minister of Finance Chrystia Freeland announced that homeowners could amortize their refinanced mortgages for up to 30 years, with a maximum property value capped at $2 million. Freeland highlighted that this limit reflects the conditions in the Greater Toronto Area.
Eligibility Highlights: The secondary suite must be occupied by the borrower or a close relative.Eligible properties include those with plans for secondary units such as basement flats, garden suites, or laneway housing.
Freeland described the initiative as a means of fostering "gentle density," allowing Canadians to add more homes within existing neighborhoods. It complements the Secondary Suite Loan Program introduced in the Budget, supporting multi-generational living and addressing rental housing shortages.
What Does This Mean For Homeowners?
In simple terms, this program allows homeowners to refinance their mortgages based on the future value of their property, including the added value of the secondary suite (such as an accessory dwelling unit or ADU). Here’s how it works:
Borrowing Against Projected Value:
Homeowners can access funds before the ADU is built, borrowing against the anticipated increased property value.
Increased Borrowing Capacity:
For example, if your property is currently worth $1,000,000, you can borrow up to $900,000 (90% of its value). After building an ADU that raises the property’s value by $350,000, bringing the total to $1,350,000, your borrowing capacity increases to $1,215,000. This additional $315,000 can help fund the construction of the ADU.