How to Get Up to $80,000 for a Secondary Suite: EJP Contracting’s Guide

**Update**: The The Affordable Housing Innovation Fund has been disconituned until further notice. Click Here for further information.

However feel free to reach out to discuss affordable Secondary Suite Renovation Options from EJP Contracting.

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Have you ever wondered how to transform your unused basement into an income suite or
secondary suite that not only boosts your property’s value but also generates extra income?
Thanks to the Canadian government’s new secondary suite loan program, homeowners can now access up to
$80,000 in low-interest loans to fund a basement renovation. In this post, we’ll
explore the key benefits of creating a secondary suite, outline how the program works, and explain why
EJP Contracting is your best partner in making this vision a reality.

Understanding Income Suites and Secondary Suites

What Is an Income Suite?

An income suite is a separate living area within a primary home that can be rented out for
short-term or long-term stays. It often includes a private entrance, a kitchenette or full kitchen, and a
bathroom. Whether you want extra cash flow through a permanent tenant or by listing on Airbnb, an income suite
can be a lucrative investment and a smart way to make the most of your property.

Difference Between Income Suite and Secondary Suite

While “income suite” is a commonly used term, you’ll often see “secondary suite” in official
documents, zoning regulations, and building permits. Both terms refer to an additional, self-contained living
space on the same property as the main dwelling. The biggest difference tends to be the context in which
the terms are used: “income suite” focuses on the potential revenue, while “secondary suite” covers the
legal and regulatory aspects of having that extra unit.

Advantages of Having a Secondary Suite

• Income Potential: Renting out the suite can provide steady cash flow.
• Flexibility: Perfect for multigenerational living—offer privacy for elderly parents or adult children.
• Higher Resale Value: A completed basement renovation with a legal secondary suite can attract more buyers.

Overview of the Secondary Suite Loan Program

Key Points of the New Loan Program

The Canadian government’s new secondary suite loan program aims to increase the availability
of affordable rental units and support multigenerational living. Key highlights include:

• Funding: Access up to $80,000 in low-interest loans.
• Eligibility: Must meet specific location and property criteria, along with occupancy rules.
• Repayment Terms: Competitive interest rates and flexible payback timelines.

Why the Government Is Encouraging Secondary Suites

Skyrocketing housing costs have created a need for more affordable living solutions. Secondary
suites offer a practical way to increase housing availability without requiring new developments.
They’re also an excellent solution for families who prefer to live together but still want privacy.

Benefits to Homeowners

• Financial Support: The loan eases up-front renovation costs.
• Increased Property Value: A quality, legal secondary suite elevates the market appeal of your home.
• Potential Rental Income: Earn extra cash once the suite is ready for tenants.

Planning Your Basement Renovation

Assessing Your Basement Space

Before diving into a basement renovation, evaluate your space. Do you have enough
ceiling height? Is there proper ventilation and sufficient natural or artificial light? Consider
enhancements like waterproofing and insulation to protect against moisture and ensure a comfortable
living environment.

Key Renovation Elements for a Secondary Suite

• Separate Entrance: A private entry boosts privacy and is typically required for legal suites.
• Full Bathroom & Kitchenette: Provide your tenants or family members with all the amenities they need.
• Soundproofing & Fire Safety: Adequate insulation and safety measures are essential for comfort and compliance.
• Building Code Compliance: Make sure your suite meets local regulations for electrical, plumbing, and emergency exits.

Budget and Cost Considerations

Renovation costs can vary based on the size of the basement, the materials chosen, and the complexity of
the project. However, the secondary suite loan program can substantially offset these expenses. By
leveraging the loan, you can focus on high-quality finishes and essential upgrades without draining your savings.

Permits, Inspections, and Compliance

Why Permits Are Necessary

Acquiring the right permits is crucial for safety, legal, and financial reasons. Unpermitted work
can lead to fines, insurance complications, and difficulties when selling your home. Proper
documentation assures future buyer