Canada Expands Loan Program to Boost Rental Housing Supply

Homeowners can access up to $80,000 in low-interest loans starting 2025 to create secondary suites and increase housing availability.

The Canada Secondary Suite Loan Program will double its loan limit from $40,000 to $80,000, offering 15-year terms at a 2% interest rate.
The program aims to help homeowners add rental units such as basement apartments or laneway homes to their properties to address housing shortages.
In addition to the loan program, homeowners will also be able to refinance insured mortgages to cover up to 90% of the post-renovation value of their homes, starting January 15, 2025.
The initiative is part of the federal government's broader housing strategy, which includes building 4 million new homes and easing mortgage rules for first-time buyers and new builds.
The loan program and mortgage reforms are designed to increase housing supply, improve affordability, and support economic growth while maintaining Canada’s fiscal responsibility.