Canada Secondary Suite Loan Program – Helping Homeowners in Chatham, Sarnia, London, and Windsor

The Canada Secondary Suite Loan Program is a federal initiative designed to support homeowners in Chatham, Sarnia, London, Windsor, and beyond in creating self-contained secondary units within their primary residences. These units—such as basement apartments, laneway homes, or in-law suites—offer separate living spaces with their own entrances, kitchens, bathrooms, and sleeping areas.

Program Overview

Launched as part of the 2024 federal budget, the program initially provided low-interest loans of up to $40,000 to eligible homeowners. Recognizing the growing need for affordable housing, the government announced in December 2024 an increase in the loan limit to $80,000, featuring a fixed interest rate of 2% over a 15-year term. This enhancement is set to take effect in early 2025.

Key Features

• Loan Amount: Up to $80,000

• Interest Rate: 2% fixed over the loan term

• Repayment Period: Up to 15 years, with no prepayment penalties

Eligibility Criteria

To qualify for the Canada Secondary Suite Loan Program, homeowners must:

• Own a Residential Property – Must be the legal owner of a home in Chatham, Sarnia, London, Windsor, or another eligible location in Canada.

• Use of Funds – The loan must be used exclusively for constructing or renovating a secondary suite.

• Regulatory Compliance – The new unit must adhere to local building codes and zoning regulations.

• Financial Assessment – Applicants must demonstrate their ability to repay the loan, including proof of stable income or projected rental earnings.

Application Process

1. Initial Assessment – Submit a proposal outlining the scope of work and estimated costs.

2. Approval – After review, eligible applicants will receive loan approval.

3. Construction Phase – Proceed with building or renovating the secondary suite.

4. Final Inspection – Ensure the completed unit meets all regulations and obtain necessary certifications.

Program Benefits

• Affordable Housing Solutions – Expands the supply of rental units, addressing local housing shortages.

• Additional Income – Helps homeowners generate a steady rental income.

• Multigenerational Living – Provides an ideal setup for aging parents or adult children while maintaining privacy.

• Accessibility Options – Enables the creation of barrier-free units tailored for individuals with disabilities.

By supporting the development of secondary suites, the Canada Secondary Suite Loan Program helps homeowners in Chatham, Sarnia, London, and Windsor maximize their property’s potential while contributing to the availability of affordable housing. Contact us today to learn more!