Why the support exists at all
Calgary has a housing supply problem and a very large stock of single family homes with unused basements. A secondary suite adds a home without needing new land, new roads or new servicing. That is why funding has been pointed at this specific type of construction rather than renovation generally.
The federal secondary suite loan
The federal program offers financing of up to $80,000 to homeowners adding a secondary suite to an existing property. It is a loan rather than a grant, so it is repaid, but the terms are set up to make suite construction viable for people who would not otherwise fund it out of savings or a line of credit.
The practical significance is that the suite can be built against the income it will produce, instead of requiring the full cost up front. For a lot of homeowners that is the difference between doing it now and talking about it for another three years.
The City of Calgary Secondary Suite Incentive Program
Separately from the federal loan, the City of Calgary has run a Secondary Suite Incentive Program that has reimbursed eligible homeowners up to $10,000 toward the cost of building a legal suite. Unlike the loan, this one is a reimbursement rather than money to be repaid.
The critical condition is the one you would expect: it applies to legal, permitted, inspected suites. Unpermitted work does not qualify, which is one more reason the permit route is the cheaper route once everything is counted.
Programs change, so check before you plan around them
This is the important caveat. Funding programs open, close, get topped up, get oversubscribed and change their eligibility rules. Amounts and conditions that are accurate today may not be accurate when you apply.
Treat the figures above as a reason to investigate rather than as a guarantee. Confirm current terms directly with the program administrators, and confirm anything City related with the City of Calgary, before you build a budget that depends on it.
We check eligibility as part of the free consultation. There is no charge for it and no obligation attached. We will tell you what currently exists, what your property looks likely to qualify for, and what it would mean for your numbers. Call 587 439 5191 or read more about the $80,000 program.
The other half of the arithmetic
Funding is only one side. The other is what the suite earns once it is finished. Legal basement suites in Calgary have commonly rented in the region of $1,500 to $1,750 per month, varying with size, finish, parking and location. Rental markets move, so check current listings in your own community rather than relying on a range in an article.
Set a realistic monthly rent against the financing cost and you have the actual question answered: whether the suite pays for itself, and how quickly. That is a calculation worth doing properly before you commit, and it is one we are happy to walk through with you.
What we do not do
We build suites. We are not financial advisors, and we do not give advice on borrowing. What we can do is tell you accurately what the construction involves, what it will cost as a fixed quote, and which programs currently exist that are relevant to it. The borrowing decision is yours and is worth discussing with someone qualified to advise on it.
Frequently asked
Is the $80,000 secondary suite program a grant?
No, it is a loan and it is repaid. The City of Calgary Secondary Suite Incentive Program has operated differently, as a reimbursement of up to $10,000 for eligible legal suites. Confirm current terms for both before budgeting around them.
Do I have to build a legal suite to qualify for funding?
Yes. Support of this kind is aimed at legal, permitted and inspected suites. Unpermitted work does not qualify, and that is before considering the insurance and resale problems it creates.
Can you help with the application?
We can tell you what programs currently exist and what your property looks likely to qualify for, and we provide the permit documentation the applications generally depend on. The application itself is submitted by you as the homeowner.
