Unlock Hidden Home Equity: Canada’s New Secondary Suite Financing Explained
Hidden under your roof and inside the walls of your current home or future home is money that can build a whole new mini-home—want to see how?
Before getting into the details, you might wonder, what's a "mini-home" anyway?
Imagine your house is a big LEGO set. A mini-home is like snapping on an extra LEGO room—maybe a cool basement apartment suite, a garage converted into an in-law suite, or a coach house or a tiny house in the backyard. Someone else (like Grandma or a renter) can live there with their own door, kitchen, and bathroom.
The Government of Canada has created two new “money helpers”:
| Money Helper | How it Works | Why It’s Cool |
|---|---|---|
| Helper #1: Super-Refinance | As of Jan 15, 2025, families can borrow back up to 90 % of their home’s value (even after the new room is built) to pay for construction. The house can be worth up to $2 million and still qualify, and you get up to 30 years to pay it back. | Let's you use the value already hiding in your house—like digging treasure out of your own yard! |
| Helper #2: Friendly Loan | In early 2025 you can also apply for a special loan of up to $80,000 at a super-low 2 % interest rate, paid over 15 years. The government doubled the limit so more families can join in. | Gives you low-cost extra cash so you don’t empty your piggy bank to build the suite. |
You can mix both money helpers. It's kind of like your kids both using their allowance and birthday money to finish a big LEGO project.
Here are the rules to qualify, so no one cheats:
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You (or a close relative) must live in the main house.
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The new suite has to be a real home—no weekend-only Airbnbs.
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When it’s done, your property can’t have more than four separate units in total.
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The suite must follow your city's or town's building and zoning rules, just like following those LEGO instructions so the tower doesn’t fall.
You may be skeptical about why bother to build a mini-home? Here's what you are missing out on:
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Earn pocket money: Rent it out and get steady income every month.
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Family hugs: Give Grandma, an older sibling, or a college-age child their own space, but keep them close.
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Help Canada: More suites mean more places for people to live, which fights the affordable housing shortage crisis.
Here is a quick recap of what is important to take with you from reading this blog:
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Two new money helpers (Super-Refinance + Friendly Loan) start rolling out in 2025.
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They make it cheaper and easier to build a safe, legal mini-home on your property.
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Follow the simple rules, and you could turn empty space into a money-making or family-friendly suite.
How do you qualify?
Ask a mortgage expert or your bank how to apply, and check your city’s or town's building zoning rules. Then start drawing up those “mini-home” building plans—just like designing your ultimate LEGO masterpiece.
Reach out to me if you are stuck and have any questions that concern you, as I have over 10 years of experience converting unused spaces into liveable suites or apartments by understanding how to create building plans from analyzing city or town zoning rules.
To learn more details about the new money helpers, click here.
Be well.
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