This guide outlines the financial options available for your ADU (Accessory Dwelling Unit) through major banks, credit unions, government loans, and grants. Additionally, each city may have unique programs that apply only to that area, which may be limited and could run out within the first six months of each year.
Main Bank Financing
RBC BANK
HELCO + Mortgage Combo
5.95% – 6.75% Rate
80% LTV
30 Year Armotization
Interest only
Self-Emp “moderate”
Appraisal “yes”
TD BANK
Home Equity
FlexLine
6% – 6.85% Rate
80% LTV
30 Year Armotization
Interest only
Self-Emp “moderate”
Appraisal “yes”
SCOTIABANK
STEP – Scotia Total Equity Plan
6% – 6.85% Rate
80% LTV
30 Year Armotization
Interest only
Self-Emp “moderate”
Appraisal “yes”
Credit Union Financing
Meridian Credit Union
Flex Line / Mortgage + Reno line
5.75% – 6.65% Rate
80% – 85% LTV
30 Year Armotization
Interest only
Self-Emp “strong”
Appraisal “yes”
DUCA Credit Union
Collateral Mortgage / HELOC
5.8% – 6.7% Rate
80% LTV
30 Year Armotization
Interest only
Self-Emp “strong”
Appraisal “yes”
First Ontario CRU
Construction / Renovation Mortgage
5.75% – 6.6% Rate
80% – 85% LTV
30 Year Armotization
Interest only
Self-Emp “strong”
Appraisal “yes”
Government Loans & Grants – Part 1
Canada Second Suite
Loan Program
Loan Program
2% Rate
$40,000 – $80,000
15 – 20 Years
Rental Income “no”
Self-Emp “yes”
Appraisal “no”
Time to Qualify “4-8 weeks”
Meet efficiency “must”
Canadian Greener
Homes Lone
Loan Program
0% Rate
$40,000
10 Years
Rental Income “no”
Self-Emp “if structured”
Appraisal “yes”
Time to Qualify “2-6 weeks”
Meet efficiency “must”
Municipal ADU / Secondary
Suite Incentive
Forgivable
0% Loan / Grant
$25K – $50K
10 – 15 Years
Rental Income “sometimes”
Self-Emp “if structured”
Appraisal “yes”
Time to Qualify “4-12 weeks”
Meet efficiency “often”
Government Loans & Grants – Part 2
CMHC Refinance for
Building 2nd Suite
Insrued Loan
6.25% Rate
90% LTV as improved value
30 Years
Rental Income “no”
Self-Emp “yes”
Appraisal “yes”
Time to Qualify “4-6 weeks”
Meet efficiency “must”
Owner or close relative
must live in the home
Second unit must be self-contained
and not used for short-term rental unit
Ontario Home Renovation
Savings Program
Grant / Rebate
0% (rebate)
$5K – $10
N/A
Rental Income “no”
Self-Emp “yes”
Appraisal “no”
Time to Qualify “2-8 weeks”
Meet efficency “must”
Federation of Canadian Municipalities (FCM) -Green Municipal fund
Forgivable
0% Loan + Grant
$100K
10 – 20 Years
Rental Income “no”
Self-Emp “if structured”
Appraisal “sometimes”
Time to Qualify “6-10 weeks”
Meet efficiency “must”