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FederalDevelopment incentive Canada-wide (Federal)Verified June 2026

CMHC Refinance (Secondary / Additional Suites)

An insured-refinancing pathway that lets an owner refinance an existing home to fund construction of self-contained secondary/additional rental suites (e.g. basement apartment, laneway/garden suite). This is the live federal vehicle for financing new suites; it is open.

What you get

Up to $2,000,000

Who it's for

Homeowners who own and live in the property (or have a related person occupy a unit rent-free); the property can have a maximum of 4 total units (including existing units) after the work, and the lending/as-improved value must be below $2,000,000.

Start your application

This takes you to the official website

What to have ready

Documents they may ask for

  • Government ID for everyone in your household, if available
  • A copy of your lease or rent agreement
  • Recent rent receipt, ledger, or proof of what you owe
  • Recent pay stubs, benefit statement, or income proof
  • ODSP, Ontario Works, CPP, OAS, or other benefit statement if you have one
  • Recent bank statement, if the program asks for it

What to say when you call

Hi, I found your housing support program and I want to check if I can apply. Can you tell me the current rules, documents needed, and the next step?

Use the official page first, then call 211 if you are not sure where to start.

Can I get this?

You have a good chance if this sounds like you:

  • At least one borrower (or guarantor) must have a minimum credit score of 600
  • Suites must be fully self-contained and must NOT be used as short-term rentals (no rentals for periods under 90 consecutive days)

What to do next

Check off each step as you go — we'll remember where you are.

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The fine print

More details about the money

Insured refinance up to 90% loan-to-value (as-improved value) on a property with up to 4 units, property value below $2,000,000, maximum amortization 30 years. The additional financing must be used only to build/complete the new suite(s) (equity take-out is NOT permitted), and CMHC must approve the insured financing before construction starts (or at an early stage).

Amounts and eligibility change. Confirm the current figure with the program administrator through the official link before you rely on it.

The full eligibility rules

Homeowners who own and live in the property (or have a related person occupy a unit rent-free); the property can have a maximum of 4 total units (including existing units) after the work, and the lending/as-improved value must be below $2,000,000. At least one borrower (or guarantor) must have a minimum credit score of 600. Suites must be fully self-contained and must NOT be used as short-term rentals (no rentals for periods under 90 consecutive days).

Good to know

All figures verified against the official CMHC Refinance page: 90% LTV (as-improved), sub-$2M value, 4-unit max, 30-year amortization, 600 min credit score, owner/related-person rent-free occupancy, construction-only / no equity take-out, pre-construction CMHC approval, and the short-term-rental prohibition (no rentals under 90 consecutive days). This is the homeowner/small-rental insured-refinance route to build suites; an owner-occupier with a rental suite is acting as a small landlord. The official page makes no reference to a separate 'Canada Secondary Suite Loan Program'. Confirm current terms with a CMHC-approved lender.

Official sources we checked
Official program page
This is a summary to get you started — the official page always has the final say. Spot something wrong? Tell us.
This guide is published by Mithulan Perinpanayagam, CPA, CA, who also co-founds Foundation Capital, a private real-estate firm that operates rental housing. Foundation Capital does not set its rents based on anything on this site. This guide is information only — not financial, legal, tax, or benefits advice, and using it does not create a professional relationship. Always confirm current details with the program administrator through the official link before you rely on them.

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