Let's Chat: 604-612-6970
|

The province opened applications on Thursday for a low-interest loan Secondary Suite Incentive Program (SSIP) to help homeowners build secondary suites, as part of its efforts to generate more affordable housing in BC.  

Homeowners will be offered forgivable loans for as much as 50 per cent of the total cost of renovations, up to a maximum of $40,000, to help cover construction costs for new basement suites, garden suites, or carriage or laneway homes on their properties. This is a pilot project open to the first 1000 applicants on a first-come first-serve basis with another round to follow later in the year.

Criteria:

  • Applicants must be Canadian residents 
  • Household income cannot exceed $209,420 on tax returns
  • The home itself cannot be assessed for more than $2.150 million in 2024
  • Building permits must have been acquired on or after April 1st, 2023
  • Suite must be a self-contained unit with its own kitchen, bathroom and sleeping area within the dwelling or on the property and cost a minimum of $20,000 to build
  • The loan is not available for renovations to existing suites
  • The loan will be provided after the work is finished and an occupancy permit has been issued 
  • If you rent out the secondary suite at or below market rates for at least five years, the loan will be forgiven at 20 per cent each year over five years (Click HERE for BC Housing Affordability limits i.e. max. rent for a 1 bedroom in Vancouver $1640)
  • You must continue to live in the home and continue to rent below market for the loan to be forgiven
  • Costs that can be covered include architectural and design fees, building and trade permit fees, materials and contractor labour, electrical work and fixtures and appliances
  • The loan is registered against title

Example:
You apply and are approved for a $60,000 renovation to suite to your basement.  It already contains a bedroom and bathroom, but a kitchen needs to be added along with legal suite requirements for permitting. Once the work is completed and reviewed, $30,000 is approved as a loan (50% of cost to a maximum of $40k). You then rent the 1 bedroom located in Victoria for $1400/month. The loan would then be reduced by $6000 per year over 5 years provided the rent continues to align with the affordability limits published by BC Housing. 

Links for more information and to apply below. Reach out if you want more details!

SECONDARY SUITE INCENTIVE PROGRAM APPLICATION

SSIP CHECKLIST

SSIP FACTSHEET

#blog #SSIP #BCrealestate #katymackenzie #mackenziemortgage