The Canada Secondary Suite Loan Program — launched federally in early 2025 — gives homeowners up to $80,000 to add a secondary dwelling unit (basement apartment, in-law suite, coach house, or garden suite) to an existing single-family home. It is the single largest renovation funding program currently available to Canadian homeowners, and in Ottawa it stacks with the Canada Greener Homes Loan, Enbridge HER+ rebates, and certain city development charge exemptions to make secondary suite construction dramatically more financially viable than it was even two years ago. This guide walks through el...
Up to $80,000 per property, structured as a low-interest loan from a CMHC-approved lender (currently 2% in 2026, fixed for the construction draw period). 15-year amortization. Funds released in construction draws against contractor invoices. The loan is registered against the property title. Repayment begins after substantial completion. Combined with the Greener Homes Loan ($40,000 at 0% over 10 years for energy-efficient upgrades), an Ottawa homeowner can access up to $120,000 in low-cost capi...
Owner-occupied principal residence (not a rental, not a second home, not a flip property). The secondary unit must be a complete self-contained dwelling — separate kitchen, bathroom, sleeping area, and private entrance. The unit cannot be used as a short-term rental (Airbnb-style) — minimum 12-month lease tenancies required. Permit-compliant work only — the program requires proof of City of Ottawa building permit and final inspection sign-off before final loan disbursement. Maximum household inc...
Single-detached homes, semi-detached homes, row houses, and existing duplexes adding a third unit. Condominiums generally do not qualify because the unit creation typically requires condo corporation approval that the program rules treat as outside scope. Multi-tenant rooming houses do not qualify. ...
Basement apartments (most common in Ottawa due to existing housing stock). In-law suites above garages. Coach houses / laneway houses in the rear yard (Ottawa permits these by-right in every residential zone as of 2020). Garden suites — small detached units, smaller than full coach houses, often sin...
Canada Greener Homes Loan — $40,000 at 0% over 10 years for SB-12-exceeding insulation, heat pumps, windows, doors, and air-sealing. Pre/post EnerGuide audit required. Stacks perfectly with the secondary suite loan because secondary suites need new envelope insulation regardless. Enbridge HER+ rebates — up to $10,000 for envelope and heat pump upgrades when the home achieves a 25%+ post-retrofit energy reduction. Stacks with the Greener Homes Loan. City of Ottawa development charge exemption — s...
Basement apartment in an existing 1970s+ home with workable ceiling height (1.95 m+): $55,000-$95,000 turnkey. Basement apartment in a 1950s home requiring underpinning: $130,000-$200,000+. In-law suite over an existing garage: $85,000-$140,000. Coach house (new build, ~70 m²): $190,000-$280,000. Garden suite (smaller ~45 m² unit): $130,000-$190,000. The $80,000 secondary suite loan covers a significant chunk of basement and over-garage suites; for coach houses, it typically covers 30-40% of cos...
Step 1: Confirm zoning permits the suite type — all residential zones in Ottawa permit a basement secondary unit and a coach house by-right since 2020. Step 2: Confirm lot can accommodate setbacks (1.2 m rear and side for coach house) and parking (one additional space required). Step 3: Pull a building permit through the ServiceOttawa portal — basement suite fee approximately $940 for a 65 m² finish, coach house fee approximately $14.50/m² with engineering drawings required. Step 4: Pull electri...
Ottawa basement suite rent (2026): $1,500-$1,950/month for a one-bedroom, $1,900-$2,500/month for two-bedroom. Coach house rent: $2,200-$2,900/month for one-bedroom, $2,600-$3,400/month for two-bedroom. On a typical $75,000 basement suite financed through the secondary suite loan at 2% over 15 years, monthly payment is approximately $483. Net cash flow after property tax allocation and minor maintenance: $850-$1,200/month positive. Payback on the homeowner's down payment portion: typically 4-7 y...
Up to $80,000 per property at 2% fixed (2026 rate) over a 15-year amortization. Funds release in construction draws against contractor invoices, and final disbursement requires city final-inspection sign-off.
Yes. Coach houses are eligible because they create a complete self-contained secondary dwelling unit. Ottawa permits coach houses by-right in every residential zone since 2020, subject to size, height, and setback rules.
No. The program requires long-term tenancies (12-month leases minimum). Short-term rental use during the loan period can trigger recall of the loan.
Yes. Many Ottawa homeowners combine the $80,000 secondary suite loan with the $40,000 Greener Homes Loan (0% over 10 years) for envelope and heat pump upgrades, accessing up to $120,000 in low-cost financing for a single project.
You'll need underpinning to gain ceiling height before the suite can be permitted. Underpinning typically costs $45,000-$85,000 and is generally eligible under the program because it's an integral cost of creating the suite.