Canada Secondary Suite Loan Program: Cancelled, and What Ottawa Homeowners Can Use Instead

Updated October 25, 2026. The Canada Secondary Suite Loan Program has been cancelled. It was announced in 2024 to lend homeowners up to $80,000 at 2% for a new secondary suite, but it never opened to applications, and Budget 2025 confirmed it will not be implemented. If you are planning a basement apartment, garden suite, or coach house in Ottawa, this page explains what happened and what financing you can actually use today.

Is the Canada Secondary Suite Loan Program still available?

No. Budget 2025 lists the program under Canada Mortgage and Housing Corporation's planned reductions and states that the Canada Secondary Suite Loan program, which was not yet operational, "will not be implemented" because it overlapped heavily with the insured mortgage rule changes announced for January 2025 (Budget 2025, Annex 3). No lender ever took applications for it.

Some websites still describe the loan as if you can apply. If a page tells you how to apply for an $80,000 loan at 2%, it is out of date.

What the program was supposed to be

• Announced in Budget 2024, with funding for CMHC to launch it starting in 2025.
• The 2024 Fall Economic Statement raised the loan to up to $80,000 at 2% interest over 15 years (Department of Finance).
• It was meant to fund new rental suites in existing homes. It was never made operational.

What replaced it: the CMHC insured refinance for secondary suites

The financing tool that did launch is a change to insured mortgage rules. Since January 15, 2025, homeowners adding a secondary suite can refinance with mortgage insurance on these terms (Department of Finance, CMHC fact sheet):

• Up to 90% of the property value, including the value the new suite adds, combined with any other loans secured on the home.
• The home's value after the suite is built must be under $2 million.
• Amortization of up to 30 years.
• The extra financing cannot exceed the project cost.
• You or a close relative must live in one of the existing units, and the new unit cannot be a short-term rental.
• A maximum of four units on the property, including the existing home.

This is a refinance through your lender, not a government loan, so your lender's own approval rules still apply. Ask your bank or mortgage broker specifically about an insured refinance for a secondary suite, and bring a detailed construction quote, because the loan is sized on the finished value and the project cost.

What this means for an Ottawa suite project

Nothing about the suite itself changes. In Ottawa, a new secondary unit still needs a City of Ottawa building permit and has to meet the Ontario Building Code for ceiling height, fire separation, egress windows, smoke and carbon monoxide alarms, and separate heating distribution. Start with these guides:

• Can I add a secondary suite to my house in Ottawa?
• Permits for a basement renovation in Ottawa
• Do you need a separate entrance for a basement suite?
• What an ADU costs in Ottawa
• How to check your zoning in Ottawa

Plan your suite with OGC

We design, permit, and build secondary suites across Ottawa, and we provide the detailed, itemized quote your lender will ask for when you apply for an insured refinance. See our basement apartment, income suite and in-law suite services, or get a free quote.