Garden Suite Grants and Loans in Ontario (2026 Directory)
Every garden suite grant, forgivable loan and fee rebate we could verify on an official page, town by town, with the amount, the strings, the deadline and whether the money is still there. There is no province-wide garden suite grant, the federal $80,000 suite loan never opened, and almost every local program caps your rent.
At a glance
Amounts are program maximums. Most are first-come, first-served and can run out without notice. Confirm with the program before you start work. Starting work early disqualifies you from almost all of them.
Ontario garden suite money is local. The biggest open programs in October 2026 are the County of Simcoe’s forgivable loan (up to $50,000, forgiven over 15 years), Bruce County (up to $50,000), Hamilton (up to $40,000) and the City of Waterloo (up to $30,000 for a detached unit). Nearly all require affordable rent for 5 to 15 years and approval before you start.
How Garden Suite Money Really Works
Let us set expectations down honestly. Nobody is handing out garden suites. Almost every program on this page is a deal: the town or county gives you money, and you agree to rent the suite at or below a set rent, to a tenant under a set income, for a set number of years. Break the deal, sell early, or move your mother in instead, and you pay some or all of it back.
That is a good deal if you were going to rent the suite anyway. It is a bad deal if the suite is for family, or if you plan to sell in five years. Read the rent cap before you read the dollar amount.
Apply before you dig
Simcoe, Waterloo, Burlington and Hamilton all say work done before approval (or before the permit) does not count. Your shovel is not eligible.
Forgivable loan
Registered against your title, shrinks each year you keep the rules, gone at the end. Sell early and you repay the balance.
Rent cap
Usually tied to CMHC average market rent, sometimes 80% of it, often including utilities. Check the actual dollar figure for your town.
First come
Most budgets are fixed and many come from the federal Housing Accelerator Fund. When it is gone, it is gone.
Garden Suite Grants and Loans by Town and County
Programs that a detached garden suite (ARU, ADU or coach house) can use, verified on the official page. "Open" means the page showed the program accepting applications in October 2026. It does not mean money is left. Call first.
| Program | Amount | Main conditions | Deadline | Status |
|---|---|---|---|---|
| County of Simcoe Secondary Suites Program simcoe.ca · 2025-26 package | Up to $50,000 per unit, forgivable over 15 years (reduces equally each year); accessibility work up to $5,000 as a grant | Rent at or below CMHC average market rent including heat, hydro and water (example 2025-26 max: Midland, Penetanguishene, Tay, Tiny 1-bed $1,426); tenant household income max $84,000; can rent to family; owner cannot move into the suite and rent the house; start within 90 days of approval; rent within 2 months of completion; no work before approval | Year-round intake | Open, first-come, limited funds |
| Barrie Bonus barrie.ca | $15,000 top-up on the Simcoe program | Barrie homeowners; through the City’s Housing Community Improvement Plan; Simcoe affordability terms apply | Not published | Listed as available |
| Barrie 2026 ARU Incentives Program barrie.ca | 50% off ARU building permit fees (incl. zoning and water fees), then full rebate of the fees if occupancy within 12 months of permit | New ARUs incl. coach houses; development charges, pre-screening and revision fees not covered; inspection report to the City within 30 days | Apply by Dec 31, 2026; permit issued by Dec 31, 2026; complete by Dec 31, 2027 | Open until funding allocated |
| Hamilton ADU and Multi-Plex Housing Incentive Program hamilton.ca (Feb 2026 terms) | Grant of 70% of eligible costs, up to $40,000 per unit and $240,000 per site | Garden suites and detached ADUs eligible; permit issued on or after Oct 9, 2025; inside the Housing for Hamilton CIP area (not Roxborough); costs after permit only; appliances, design fees and financing excluded; repayable on default | Occupancy within 18 months of conditional approval or by Aug 4, 2027, whichever is first | Open, subject to funding |
| Whitby HAF fee reimbursement whitby.ca | One-time refund of ADU building permit fee, registration inspection fee, curb cut and below-grade entrance fees, and education DCs for detached ADUs | ADU permit issued on or after Apr 1, 2024; minor variance final before application (its fees not refunded); one application per permit | Complete permit application by Dec 31, 2026 (submit 2 weeks earlier); agreement and ADU registration by Mar 31, 2027 | Open; the Town says no extensions |
| City of Waterloo ARU Grant waterloo.ca | Detached ARU: 50% of costs to $30,000; interior ARU: 50% to $20,000 | Rent incl. utilities at or below 80% of CMHC AMR for 5 years (2026 max 1-bed $1,236, 2-bed $1,466) to an income-eligible tenant; no construction before approval; permit within 120 days; occupied within 1 year; rental licence | None, while funds last | Open |
| Region of Waterloo Ontario Renovates Secondary Suites regionofwaterloo.ca · fact sheet | Up to $25,000 per property, interest-free, forgiven over 15 years (includes up to $5,000 accessibility grant) | Owner’s sole principal residence; home value at or below $505,469 per the Dec 2025 fact sheet (the Region’s program web page instead says a maximum $600,000 MPAC assessment, so confirm which applies); rent at or below AMR; tenant income limits | Ongoing; fact sheet deadline line is out of date, so confirm | Listed, limited annual funding |
| Kitchener ADU Grant (Missing Middle CIP) kitchener.ca | 1st and 2nd ADU: 100% of education development charges; 3rd ADU (4th unit): 50%, or 100% of City, Regional and education DCs with an affordable, barrier-free or energy commitment | Detached or attached ADUs; permits issued on or after Jan 5, 2026; priority for permits by Oct 31, 2026 | Intake opened Jan 19, 2026; no closing date | Open while funding available |
| District of Muskoka MAHIP – ARU stream muskoka.on.ca | $40,000 (10 years affordable) or $50,000 (15 years affordable) | New additional unit only; rent at or below approved levels; tenants within income limits. See our cottage country page | 2027 window open until January 8, 2027 | Open (2027 window) |
| Bruce County Affordable ARU Funding brucecounty.on.ca | Up to $50,000, up to 75% of construction cost | Principal residence; detached ARUs supported; rent at or below CMHC AMR (1-bed $1,236, 2-bed $1,531) for 10 years; renter income at or below $67,200 | Continuous until committed | Open (2026 intake) |
| Caledon Gentle Density CIP caledon.ca | Affordable Unit Grant up to $30,000 to create or legalize an ARU; Servicing Review Grant up to $35,000 for rural lots | Commitment to affordable rent; first-come; details at caledon.ca/housing | Program runs to Dec 31, 2028 | Open |
| Kingston ARU Incentive Program cityofkingston.ca | Up to $40,000 for a detached rear-yard ARU at launch (interior to $30,000), plus extras for accessibility and water service | Forgivable if you follow program rules for 5 years; first-come | Not published | Listed; City does not post remaining funds |
| London ARU Loan london.ca | Lesser of $45,000 or eligible cost (a repayable loan, not a grant) | Main unit owner-occupied; rental licence; leases 31 days or more; approval before work; repaid in 108 monthly payments starting a year after advance | Not published | No closure notice |
| Puslinch ARU Grant puslinch.ca | Detached ARU up to $15,000 (max $20,000 per property) | Rent at or below 80% of CMHC AMR for the term set at approval; no short-term rental; $200,000 total budget | Intake May 2026 to Sept 2027; start within 6 months of permit | Policy adopted May 6, 2026 |
| Mississauga Gentle Density incentives mississauga.ca | Building permit fee refunded by cheque after inspections; City DCs and parkland exempt for 2nd/3rd units | School board DCs may be payable; 4th unit has different terms | Not published | Listed (2026 table) |
| Toronto DC exemption and deferral toronto.ca | DCs exempt on 2nd, 3rd and 4th units; older 20-year DC deferral still listed for rear-yard units | Deferral needs a restriction on title; due on severance or sale without an assumption agreement. No Toronto garden suite grant found | None | Available |
Last checked October 2026 · Source: the official page linked in each row
Places we looked and found nothing for garden suites
- Ottawa: the coach house page lists no grant; coach houses are DC-exempt under provincial law (ottawa.ca). See Ottawa coach houses.
- Grey County: the housing action page lists ARU resources but no ARU funding.
- Niagara Region: Niagara Renovates covers repairs and accessibility, not new units (niagararegion.ca). St. Catharines is below. See Niagara.
Not seeing your town? Many counties and regions run Ontario Renovates with federal-provincial money, and the terms change every year. Call your county or regional housing department and ask the exact question: "Do you fund new secondary suites, including detached ones, this year?" Then check our rules by city table, which lists incentives per town.
Dead Programs Still Being Advertised
If a contractor’s brochure promises you one of these, the brochure is older than the program.
| Program | What it was | What happened |
|---|---|---|
| Canada Secondary Suite Loan Program (CSSLP) | Federal low-interest loan, expanded to up to $80,000 in the 2024 Fall Economic Statement | Never accepted an application. Reported as dropped in Budget 2025; no federal page takes applications. The CMHC insured refinance is the federal tool that does exist |
| Toronto Affordable Laneway Suites Program | Up to $50,000 forgivable over 15 years for rent at or below AMR | The City says it "has been discontinued" and "is not expected to be reactivated" due to insufficient provincial funding (toronto.ca) |
| Brampton Garden Suite Grant | City grant for garden suites | Closed July 21, 2025 (brampton.ca) |
| Burlington ARU Incentive Program | Forgivable loan up to $95,000 for a detached affordable ARU, fee waivers, $15,000 legalization grant | Closed October 1, 2025 (burlington.ca) |
| London ARU Construction Grant | Up to $20,000 standard, $45,000 affordable stream | Closed, all funding allocated; permit window was Apr 29 to Sept 7, 2026 (london.ca) |
| St. Catharines CIP ADU Grant | Up to $80,000 for an exterior ADU, 70% of eligible costs | Closed. City CIP page, update of April 16, 2026: funding "has been depleted. The ADU Program is closed." (stcatharines.ca/cip) |
Last checked October 2026 · Sources linked in each row
The Money That Works Anywhere in Ontario
Development charge exemption (Ontario). Provincial law exempts a second unit in an ancillary building from development charges and parkland fees where the main house has no more than two units. On most lots this is the biggest dollar figure on this page and you do not have to apply for it. Watch for school board charges in some towns. See development charges.
CMHC insured refinance. Borrow up to 90% of the as-improved value to add units, as long as the as-improved value is under $2,000,000, the property ends up with no more than 4 units, amortization is 30 years or less, and no unit is rented for less than 90 consecutive days (CMHC). Lenders vary a lot in how they handle construction draws. See CMHC secondary suite refinance and financing options.
Multigenerational Home Renovation Tax Credit. A refundable federal credit on up to $50,000 of eligible costs, worth up to $7,000 for 2026 (it was $7,500 when the credit started, because the rate follows the lowest federal tax rate), when you build a self-contained unit for a relative who is 65 or older, or 18 or older and eligible for the disability tax credit. Grants and rebates you receive reduce the eligible cost. See the MHRTC guide.
HST on a new rental garden suite. Build it to rent, and the CRA can deem you to have sold it to yourself at fair market value when the first tenant moves in, with HST owing. The New Residential Rental Property Rebate gives part of that back, and it has a two-year filing deadline. This is the program people find out about too late. See Garden Suite HST Rebate and run the free rental check at OntarioHSTRebates.ca.
Can You Stack Them? Sometimes. Read the Fine Print.
On paper, a Barrie homeowner could stack the Simcoe loan, the Barrie Bonus, the 2026 permit fee rebate and the DC exemption on one garden suite. That is real money. But the programs talk to each other, and not always kindly.
- Read the "other rebates" clause. Simcoe’s 2025-26 package says the homeowner cannot claim the same work for provincial tax rebates or other rebate programs. Ask in writing which ones it means before you file anything.
- Grants shrink tax credits. The MHRTC is reduced by grants and rebates for the same work. And the MHRTC is for a relative living there, while most loans want an arm’s-length affordable tenant. Simcoe does allow renting to family, at the capped rent. Pick a lane.
- Rent caps include utilities. Simcoe and Waterloo both count heat, hydro and water inside the rent. Do your rental math with that number, not the market number.
- No short-term rentals. CMHC, Burlington, London and Puslinch all forbid it. See short-term rental rules.
- Selling resets everything. Most forgivable loans come due, in whole or in part, when you sell. Plan your exit before you sign.
- Ask your accountant how a grant affects your cost base, rental income and HST position. We are builders. We are not your accountant, and nothing here is tax advice.
Not sure which programs your lot qualifies for?
Start with the free Rules Checker, which lists the incentive programs on file for your town. Then the $399 + HST Lot Report checks your rules, servicing and fire path and gives you a ballpark budget to apply with. 48 hours, credited toward permit plans or a build.
Rules of thumb before you apply
- Phone the program first and ask if money is left this year.
- Get approval in writing before a single shovel, permit or deposit.
- Have a builder’s estimate ready. Most programs fund a percentage of cost, so they ask.
- Write down the rent cap, the term and the repayment rule on one page and stick it on the fridge.
- Budget the build as if the grant does not come. If it comes, it is a bonus. If it does not, you are still fine.
For the real cost picture, start at Garden Suite Cost in Ontario, then ROI and rental income. Simcoe readers: our Simcoe County Secondary Suite Grant page walks through that program step by step.
Grant or no grant, know your number first.
Get a builder’s read on your lot and a ballpark budget in 48 hours, or book 30 minutes with a builder to pressure-test a quote and a funding plan.
Garden Suite Grant Questions
Is there a government grant for garden suites in Ontario?
Not province-wide. The money is local: counties, regions and cities run their own programs, often with federal Housing Accelerator Fund money. The largest open ones in October 2026 are Simcoe County (up to $50,000 forgivable), Bruce County (up to $50,000), Hamilton (up to $40,000) and the City of Waterloo (up to $30,000 for a detached unit). Most cap the rent you can charge.
Is the $80,000 Canada Secondary Suite Loan still available?
No. The Canada Secondary Suite Loan Program was announced in 2024 and expanded to $80,000 in the 2024 Fall Economic Statement, but it never accepted applications and was reported as dropped in Budget 2025. The federal tool that does exist is the CMHC insured refinance, which lets you borrow up to 90% of the as-improved value. See CMHC refinance.
How does the Simcoe County Secondary Suites Program work?
The County lends up to $50,000 per unit, forgiven in equal parts over 15 years. You must rent at or below CMHC average market rent, including utilities, to a household earning no more than $84,000, start within 90 days of approval and rent within two months of finishing. You can rent to family. Intake is year-round while funds last. See our Simcoe guide.
Does Toronto have a garden suite grant?
Not in 2026. Toronto’s Affordable Laneway Suites Program was discontinued and the City says it is not expected to return. Toronto does exempt 2nd, 3rd and 4th units from development charges, still lists a 20-year DC deferral for rear-yard units, and publishes free pre-approved garden and laneway suite plans. See Toronto garden suites.
Can I get a grant if the garden suite is for my parents?
Usually not a rent-capped grant, since most programs want a tenant. Simcoe County does allow family tenants at the capped rent. The better fit is often the federal Multigenerational Home Renovation Tax Credit, worth up to $7,000 in 2026 for a unit built for a relative 65 or older or eligible for the disability tax credit. See MHRTC.
Do I have to pay development charges on a garden suite?
In most cases no. Ontario exempts a second unit in an ancillary building from development charges and parkland fees where the main house has no more than two units. Some towns still collect school board development charges, and Whitby and Kitchener will refund or cover those in certain cases. See development charges.
Can I apply for a grant after I start building?
Almost never. Simcoe, Waterloo, Burlington and London all require approval before work starts, and Hamilton only counts costs incurred after the building permit is issued. Starting early, even on site prep, can make you ineligible. Apply first, build second.
Do I owe HST on a rental garden suite?
You might. If you build a garden suite to rent, the CRA can treat you as having sold it to yourself at fair market value when the first tenant moves in, with HST owing. A rental rebate offsets part of it, and you must file within two years. See Garden Suite HST Rebate and run the free check at OntarioHSTRebates.ca. This is not tax advice.