The Canada Secondary Suite Loan Program was meant to give homeowners a low-interest loan to add a basement apartment, laneway home or garden suite. It was never launched. This page explains what was proposed, why it was cancelled, and the insured refinance you can use instead.
What happened to the program
| Proposed loan | Up to $80,000 |
| Proposed term and rate | 15 years at 2% |
| Announced | Budget 2024; the 2024 Fall Economic Statement doubled the limit to $80,000 and planned a launch in early 2025 (Finance Canada) |
| Status | Cancelled before launch |
Budget 2025 said: “The Canada Secondary Suite Loan program, which is not yet operational, will not be implemented as it has a large potential to overlap with the government’s homeowner insured mortgage rule changes announced in January 2025.” There is no application process or lender list, because the loan never existed.
The alternative: CMHC's insured refinance for suites
Since January 15, 2025, homeowners can refinance with an insured mortgage to pay for adding units (Finance Canada). Under CMHC Refinance:
| Rule | Detail |
|---|---|
| Borrower | Already owns the home; the borrower, or a relative living rent-free, occupies one of the units |
| Units | Up to 4, including the existing units |
| Maximum loan | 90% of the lending or as-improved value |
| Property value | Below $2 million |
| Amortization | Up to 30 years |
| The suite | Self-contained and compliant with local bylaws; not rented for less than 90 consecutive days |
CMHC says the insured financing must be approved “prior to the start of construction or at least at an early stage”, and the extra money can only pay for the project, with no equity take-out. Because it enlarges your mortgage rather than adding a small separate loan, you pay interest on the added amount at your mortgage rate, plus a one-time CMHC premium that can be added to the loan.
Other ways to finance a suite
| Option | How it works |
|---|---|
| Conventional refinance | Borrow against your equity without insurance; OSFI’s B-20 treats mortgages above 80% loan-to-value as needing insurance by law |
| Home equity line of credit | B-20 limits the revolving HELOC part to 65% of the home’s value; anything above that must be amortized |
| Renovation or personal loan | Unsecured, usually at a higher rate than a mortgage |
Figures for these are from OSFI’s Guideline B-20. The costs of building a suite, provincial and municipal incentives, and whether a suite pays off are on secondary suite incentives in Canada.
Related pages
Sources
The figures and rules on this page come from these sources, last checked against them on September 25, 2026. How we check facts.
- CMHC: CMHC Refinance for Building Secondary Suites
- Department of Finance Canada: 2024 Fall Economic Statement: Making it easier for homeowners to build secondary suites
- Department of Finance Canada: Mortgage Insurance Rule Changes to Enable Homeowners to Add Secondary Suites
- Government of Canada: Annex 3: Comprehensive expenditure review: Planned reductions by organisation
- OSFI: Residential mortgage underwriting practices and procedures