The Epic Failure of a promising 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), provided promise to homeowners of low-interest loans of up to $80,000 to create secondary suites such as legal basement apartments, laneway suites, and garden suites. The program aimed to address Canada's housing supply challenges by enabling homeowners to add affordable rental spaces to their properties.
This was a great goal that never came to fruition and is held up in the air right now, with no indication of whether it will or will not be an actual program (our money is on not).
What happened to the Canada Secondary Suite loan program?
Unfortunately, politics happened. With the announcement coming from the previous Liberal Party leadership that was essentially on the way out the door, there was little need for the current Liberal Party to follow through on the promises made in the Fall Economic Statement.
The Key Features of the Canada Secondary Suite Loan Program
If the program was followed through on, these were the key features:
Eligibility for the canada secondary suite loan program
The program aimed to target the creation of secondary suites for long-term rental purposes. It includes renovations for existing secondary suites and new construction of units like garden or laneway suites, as well as the conversion of garages into secondary suites. Learn more about how you can leverage BVM Contracting’s expertise in all three of these secondary suite projects.
How much was the program offering?
You would have been able to borrow up to $80 000 from the government at a low interest rate (2 percent) and a 15-year term, as per the recent news release on December 10th, 2024.
Purpose of the Canada Secondary Suite Loan Program
The focus of the program was to provide affordable housing options, especially in areas where rental units are in high demand like Toronto and larger cities.
Were Garden Suites and Laneway Suites Eligible for this program?
Along with secondary suites in the primary home and garage conversions, new construction garden suites and laneway suites were being targeted to qualify under this program. The initiative encouraged the development of various forms of secondary housing, including newly constructed detached units like garden suites and laneway suites. Unfortunately now this program has no indication of being followed through on.
Helpful resources and links to learn more
2024 Fall Economic Statement: Making it easier for homeowners to build secondary suites (December 10th News Release)
Deputy Prime Minister announces new actions to build secondary suites and unlock vacant lands to build more homes (October 8th News Release)
Government of Canada Federal Budget 2024: Chapter 1
Government of Canada Federal Budget 2024: Chapter 2
About BVM COntracting
BVM Contracting is a full-service General Contractor or Home Builder located in Toronto. We provide home renovation and building services for major home renovations (kitchen renovations, bathroom renovations, basement renovations, full interior renovations, home additions, lot severances, and new home construction). Our goal is to help guide our clients through the process of renovating their home, from concept to completion.
Further than providing General Contracting and Project Management for major home renovations, we also offer value-added services such as renovation financing, renovation rebate consultations and services, building permit and design services, smart home installation services, and real estate investor services.
To learn more about our offering by visiting our services page.