Short answer: no. The Canada Secondary Suite Loan Program (CSSLP) was announced in the 2024 Fall Economic Statement but never launched, and Budget 2025 says it will not be implemented. In 2026 the federal options are CMHC Refinance for secondary suites and, for some families, the Multigenerational Home Renovation Tax Credit.
Key takeaways
| Question | Short answer | Source |
|---|---|---|
| Does the CSSLP exist? | No. Budget 2025 says the program, which was not yet operational, will not be implemented | Budget 2025, Annex 3 |
| What was announced? | Loans of up to $80,000 (doubled from $40,000), 15-year terms at 2 per cent, launch in early 2025 | Finance Canada, Dec 10, 2024 |
| Can I still apply? | No. There is no CSSLP application | Budget 2025, Annex 3 |
| Federal option that exists | CMHC Refinance: up to 90% loan-to-value, as-improved value below $2,000,000, up to 30-year amortization, up to 4 units | CMHC |
| Tax credit option | MHRTC (line 45355): 14.5% of up to $50,000 of qualifying costs, maximum $7,250 (2025 tax year), for a senior or disability-tax-credit-eligible adult | CRA |
| Ontario permission | Up to three units on eligible urban lots, one of which can be in an ancillary building | Planning Act s. 16(3), s. 35.1 |
Is the Canada Secondary Suite Loan Program available in 2026?
No. Budget 2025's expenditure review says: "The Canada Secondary Suite Loan program, which is not yet operational, will not be implemented as it has a large potential to overlap with the government's homeowner insured mortgage rule changes announced in January 2025." The program never opened, so there was never an application, a lender list or an approval process to join.
Source: Budget 2025, Annex 3 (Canada Mortgage and Housing Corporation). Pages that still describe an open "secondary suite loan" are out of date.
What was announced, and when
- Budget 2024: provided $409.6 million over four years to CMHC to launch the Canada Secondary Suite Loan Program, according to Finance Canada.
- October 8, 2024: the federal government announced mortgage insurance rule changes so homeowners could refinance with insured mortgages to add a secondary suite, effective January 15, 2025.
- December 10, 2024: Finance Canada said the 2024 Fall Economic Statement would double the loan limit from $40,000 to $80,000, offer 15-year terms at 2 per cent, and launch the program in early 2025 (news release).
- Budget 2025: the program, still not operational, will not be implemented (Annex 3).
The figures above are federal program announcements, not Modular X pricing.
What exists instead: CMHC Refinance for secondary suites
The insured refinance that Budget 2025 pointed to is live. According to CMHC:
- Owner-occupied homes with up to 4 units, including the existing unit(s), can be financed up to 90% loan-to-value.
- The maximum lending value or as-improved property value must be below $2,000,000, and the maximum amortization is 30 years.
- Borrowers must already own the home, and the borrower or a person related by marriage, common-law partnership or a legal parent-child relationship must live in one of the units.
- The suite must be self-contained, comply with local by-laws, and not be used for stays shorter than 90 consecutive days.
- The extra financing must pay for building the suite; equity take-out is not permitted.
- CMHC approval must come before construction starts, or at least at an early stage.
- Lenders need improvement lists and cost estimates, building plans, a building permit, and an occupancy permit or a qualified third-party compliance report.
- At least one borrower or guarantor needs a minimum credit score of 600. Mortgage insurance premiums apply, on the schedule CMHC publishes.
CMHC Refinance is offered through lenders, not directly by CMHC to homeowners. Ask a lender or mortgage broker early whether your plan, including a detached garden suite, qualifies. For what suites cost and the other incentives that exist in Ontario, see garden suite cost in Ontario.
The multigenerational tax credit
The Multigenerational Home Renovation Tax Credit is a separate, narrower option. The CRA (line 45355) says it is refundable and applies to renovation costs that create a self-contained secondary unit so a senior, or an adult eligible for the disability tax credit, can live with a qualifying relative. For the 2025 tax year it is 14.5% of up to $50,000 in qualifying expenditures per qualifying renovation, a maximum of $7,250 per claim. It is claimed after the work is completed, so it does not fund construction up front. Confirm eligibility with the CRA or a tax professional.
Ontario rules for secondary suites
Financing is only useful if the lot allows a suite. Ontario's Planning Act s. 16(3) stops official plans from prohibiting, on a parcel of urban residential land, two units in a detached house, semi-detached house or rowhouse plus one unit in an ancillary building, or three units in the house when no ancillary building has a unit. Section 35.1 applies the same limits to zoning by-laws. Section 16(3.1) caps required parking at one space for each of those additional units, and s. 16(3.2) bars a minimum floor area for them.
Municipal zoning still sets height, setbacks, floor area and soft landscaping, and a building permit is required. In Toronto, the City says a garden suite must comply with the zoning by-law, the Ontario Building Code and tree regulations before a permit is issued (City of Toronto — Garden Suites). More detail: additional residential units in Ontario and the garden suites hub.
How to plan without the loan
- Confirm the lot first: zoning, access, trees and servicing decide whether a suite can be built. Start with a lot feasibility check.
- Talk to a lender about CMHC Refinance before design is final, since CMHC approval is needed before or early in construction.
- Collect what lenders ask for: plans, cost estimates, the building permit and, at the end, an occupancy permit or compliance report.
- If a parent, grandparent or a relative eligible for the disability tax credit will live in the suite, check the MHRTC rules with the CRA.
- Check your municipality for local incentives or fee exemptions; programs open and close. See garden suite costs and incentives in Ontario.
Where Modular X fits
Modular X designs, permits and builds garden and laneway suites in modules across the GTA. We do not lend money or give tax advice. A feasibility check confirms what your lot allows before any design, so the information your lender needs is based on a buildable plan. Begin at feasibility.
How to apply (and why there is no CSSLP form)
Search demand for "how to apply for the secondary suite loan program" is real, but the answer is that there is no form. Budget 2025 states the Canada Secondary Suite Loan Program will not be implemented. Practical next steps: (1) confirm your lot can host a suite under local zoning and the Planning Act, (2) ask a lender about CMHC Refinance for secondary suites before construction, and (3) if a senior or disability-tax-credit-eligible adult will live in a new self-contained unit with a qualifying relative, review the Multigenerational Home Renovation Tax Credit with the CRA or a tax professional.
FAQs
Sources
- Government of Canada — Budget 2025, Annex 3 (Canada Secondary Suite Loan Program)
- Finance Canada — 2024 Fall Economic Statement: Making it easier for homeowners to build secondary suites
- CMHC — Refinance for Building Secondary Suites
- Canada Revenue Agency — Multigenerational Home Renovation Tax Credit (line 45355)
- Planning Act, R.S.O. 1990, c. P.13, s. 16(3) and s. 35.1
- City of Toronto — Garden Suites
Disclaimer: Figures cited are market estimates provided for information only and are not a quote. Municipal rules, fees, and programs change — always verify current requirements with your local authority. Modular X provides exact pricing only after a site-specific feasibility review.