Homeowners in B.C. who want help covering the cost of converting an unused basement into a rental apartment or a garage into a laneway home can tap provincial or federal loan programs that are part of much larger plans to increase the housing supply.
But each program comes with a lot of fine print.
Here’s a rundown of what you need to know:
What do the programs offer?
The provincial program offers forgivable loans of as much as 50 per cent of the total cost of renovations, up to a maximum of $40,000.
Applicants can use the loans toward adding a secondary suite or an accessory dwelling unit such as a garden suite, laneway house or carriage home on the property that is their primary residence.
If the unit is rented long-term at below market rates for at least five years, the loan will be forgiven. The province’s goal is to give these forgivable loans to 1,000 homeowners each year as a way of adding 3,000 new rental units at below-market rates.
The federal program will enable homeowners to access up to $80,000 in low-interest loans to add secondary suites to their homes. Initially, the loans were to be to a maximum of $40,000, but in December, Ottawa doubled the amount.
The federal program also comes with mortgage insurance changes so homeowners can refinance insured mortgages and access home equity for making renovations or constructing secondary suites.