What You Should Know About The Canada Secondary Suite Loan Program
The Canada Secondary Suite Loan Program, introduced in the 2024 Fall Economic Statement and updated in a recent news release on December 10th, 2024, is a groundbreaking initiative aimed at addressing the pressing housing supply challenges in Canada. This program provides homeowners with low-interest loans of up to $80,000 to create secondary suites, including legal basement apartments, laneway suites, and carriage houses. In this blog post, we’ll delve into the key features of the program, eligibility criteria, and how TLN Contracting can assist you in making the most of this opportunity. If you're ready to get started, feel free to book your free project consultation below!
Key Features of the Canada Secondary Suite Loan Program
The Canada Secondary Suite Loan Program is designed to empower homeowners to contribute to the housing market by adding affordable rental spaces to their properties. Here are some of the key features of the program:
Loan Amount: Homeowners can borrow up to $80,000 at a low interest rate of 2% with a 15-year term.
Purpose: The program focuses on creating secondary suites for long-term rental purposes, which can include renovations for existing suites or new constructions.
Types of Units: Eligible projects include legal basement apartments, carriage houses, garden suites, and laneway suites.
Eligibility for the Canada Secondary Suite Loan Program
To qualify for the Canada Secondary Suite Loan Program, homeowners must focus on creating secondary suites intended for long-term rental. This includes:
Renovations for existing secondary suites
New constructions of carriage houses or laneway suites
Conversions of garages into secondary suites
This program is particularly beneficial for homeowners in high-demand rental areas, such as the Comox Valley and larger cities, where affordable housing options are urgently needed.
How Much Can I Borrow?
Under the Canada Secondary Suite Loan Program, you can borrow up to $80,000 from the government at a competitive interest rate of 2%. The loan is structured with a 15-year term, making it an attractive option for homeowners looking to invest in their properties while contributing to the housing supply.
Do New Carriage Houses and Laneway Suites Qualify for This Program?
Yes! The program encourages the development of various forms of secondary housing. In addition to secondary suites within the primary home and garage conversions, newly constructed carriage and laneway suites are also eligible. This flexibility allows homeowners to explore different options for increasing the density of housing on their properties.
How TLN Contracting Can Help
For homeowners considering a legal basement apartment, secondary suite, carriage house, or laneway suite, the Canada Secondary Suite Loan Program presents an excellent opportunity to leverage low-cost loans. TLN Contracting specializes in the planning, design, and construction of secondary units, ensuring that your project aligns with municipal requirements, funding program criteria, and your overall budget.
With the potential for lenders to provide insured financing for secondary suite projects up to 90% Loan-to-Value (LTV), the prospect of generating additional income from your property or creating a secondary suite for a family member becomes much more feasible.
Get Started Today!
If you're interested in exploring how you can take advantage of the Canada Secondary Suite Loan Program, reach out to TLN Contracting today. We offer free, no-obligation consultations to help you understand the process and get started on creating a secondary suite on your property. Don’t miss out on this opportunity to enhance your home and contribute to the housing market!
Feel free to book your consultation below and take the first step towards creating your secondary suite!