Guide to Ontario’s Secondary Suite Incentive Program
Introduction
Ontario’s Secondary Suite Incentive Program aims to increase the availability of affordable housing by providing financial support to homeowners looking to create secondary suites. These suites, also known as accessory dwelling units (ADUs), can be a valuable addition to your property, offering an additional source of income and contributing to the solution of the housing crisis.
Key Features of the Program
The Secondary Suite Incentive Program offers several key benefits to eligible homeowners:
- Up to $40,000 in forgivable loans to cover 50% of the construction costs for new secondary suites.
- Encourages the development of basement suites, laneway houses, and garden suites.
- Helps create affordable rental housing by setting below-market rental rates for the units.
- Support for building accessible and barrier-free units for seniors and individuals with disabilities.
Eligibility Criteria
To qualify for the Secondary Suite Incentive Program, homeowners must meet the following criteria:
- Be the registered owner of the property and use it as their primary residence.
- Have a combined gross annual income of less than $209,420 for all owners on the title.
- The property must have an assessed value below the homeowner grant threshold ($2.15 million in 2024).
- Obtain necessary building permits from local authorities for the new suite.
- Rent the new suite at below-market rates for at least five years to qualify for loan forgiveness.
Application Process
Follow these steps to apply for the Secondary Suite Incentive Program:
- Plan Your Project: Assess your property’s potential for a secondary suite and consult with local zoning officials to ensure compliance with all regulations.
- Secure Financing: Discuss financing options with your lender and ensure you have the funds to cover your share of the construction costs.
- Obtain Permits: Apply for the necessary building permits from your local municipality. Ensure that the plans meet all building codes and zoning requirements.
- Submit Your Application: Complete the application form for the Secondary Suite Incentive Program, including all required documentation such as proof of income, property ownership, and building permits.
- Complete Construction: Once approved, proceed with the construction of your secondary suite. Ensure that all work is inspected and meets the required standards.
- Rent Your Suite: Upon completion, rent out the suite at the agreed below-market rates for a minimum of five years to qualify for loan forgiveness.
Benefits of Creating a Secondary Suite
Developing a secondary suite offers several advantages:
- Additional Income: Generate rental income to help cover mortgage payments and other expenses.
- Increase Property Value: Enhance the value of your property by adding a rentable unit.
- Affordable Housing: Contribute to the availability of affordable rental housing in your community.
- Flexibility: Provide housing for family members, such as aging parents or adult children, while maintaining privacy.
Conclusion
The Secondary Suite Incentive Program in Ontario provides a valuable opportunity for homeowners to improve their financial stability and contribute to the community by creating affordable rental housing. By understanding the program’s benefits and eligibility criteria, and following the application process, you can successfully develop a secondary suite that meets your needs and benefits your community.
Is Building a Rental Suite Right for You?
Is there demand for rental housing in your neighborhood?
Have you researched how much it will cost to build your suite?
Have you spoken to your lender about financing options?
Can you afford to build a suite, even if there are delays or additional costs?
Can you meet all zoning requirements?
Can you meet all building code requirements?
Do you want to be a landlord and rent the suite out long-term?
Can you afford the mortgage or loan payments if the suite is not rented for a few months?
I live in Haldimand NorfolkCounty, specifically Simcoe Ontario, I have perfect location for a secondary suite & am interested in pursuing.. could you tell me if there is funding locally, what is the amount available, application & process?
Jennifer Crandall
Hello, Jennifer Crandall,
We hope you are doing well! We are excited to inform you that we now have an opportunity to assist with financing your project through our partners. They can help you obtain bank financing and complete an application for government funding, if the program is available in your region.
To begin the process, we need to conduct a pre-survey on your property to determine what can be built. This service is currently offered for free.
You can easily request a pre-survey by filling out the application form on our website at the following link: https://vigohouse.ca/cta-presurvey/
If you have any questions, our team will be happy to assist you at every stage!
Best regards,
The VIGO House Team
Hi Can you qualify if the construction has already started?
Thank you
Hi, Nancy!
Construction has only started if you’ve received the building permit and all required document signatures. Has this been completed for your project yet?
I am in Oshawa ON I have a decent sized yard and an existing garage that could be converted easily. As well as more space for maybe additional spaces what could we do here?
Hello, Sean!
We hope you are doing well! We are pleased to offer you a free pre-survey service to help determine what can be built on your property. This is the first step in planning your project and understanding all the available possibilities.
To request your pre-survey, simply fill out the application form on our website using the following link: https://vigohouse.ca/cta-presurvey/.
If you have any questions, our team will be happy to assist you at every stage of the process!
Best regards,
The VIGO House Team