Canada's secondary suite refinance lets you borrow against your home's post-renovation value — up to 90 percent. Here are the rules, the conditions, and who it actually suits.
Since January 2025, Canadian homeowners have been able to refinance against what their home will be worth once a secondary suite is finished — not what it is worth today. If you have an unused basement and a renewal coming, it is the most useful rule change in years.
How much you can borrow
A secondary suite refinance allows up to 90 percent of the post-renovation value, on properties worth up to $2 million, amortised over as long as 30 years.
Set that beside an ordinary mortgage refinance, which stops at 80 percent of the home's current value, and the gap matters. You are borrowing a higher percentage of a higher number, and that difference is often what makes a build affordable at all.
What counts as a suite
Lenders are strict. The unit must be genuinely self-contained — its own kitchen, bathroom, living space and separate entrance — built to local codes and zoning bylaws, and fit for year-round occupancy.
One condition catches people out: it must be let on terms of at least 90 consecutive days. This is a long-term rental programme, so planning the space around nightly bookings will not qualify.
Does the arithmetic work?
It comes down to one comparison: the rent a legal suite earns against the rise in your payment. Across most of BC and Alberta a self-contained one-bedroom covers that and leaves something over — which is why this appeals to households renewing into a higher rate.
It also helps later. Rent from a permitted suite can be counted as income when you qualify; an unpermitted one cannot, and that is the most common reason suite income gets refused.
Where to start
Settle two things before hiring anyone: that your municipality will permit a suite at your address, and a written quote, so the valuation has something firm behind it. Edmonton is ahead of most cities on approvals, though the programme is national.
Deepinder Sidhu works with 30+ lenders across BC and Alberta and can tell you what your home will support before you spend a dollar. Ask about renovation financing early — the valuation drives everything else.
