Incentives & Financing Options
for Garden & Laneway Suites in Toronto
Building a garden or laneway suite is a smart investment and there are financial programs available to make it more accessible.
Whether you're looking to tap into home equity, apply for a city grant, or explore low-interest loans, this guide explains your best options as a Toronto homeowner.
Development Charges Deferral (City of Toronto)
Toronto offers a Development Charges Deferral Program for laneway and garden suites, allowing homeowners to defer certain municipal fees over 20 years northvancouverarchitect.com+12evalanes.com+12wowa.ca+12.
Certified Plans streamline permit approval, reducing both timelines and permit costs via pre-approved designs .
Toronto City Council expanded permissions and eased access for garden suites in 2022
Federal Loan Programs
The Canada Secondary Suite Loan Program offers up to $80,000 at 2% interest over 15 years for eligible homeowners starting in 2025 customgardensuite.ca+15canada.ca+15reddit.com+15.
Homeowners can also access up to 90% of property value through CMHC-insured refinancing for secondary suites .
Construction & Mortgage Financing
Construction Loans and HELOCs are widely used and flexible options to fund suite projects evalanes.com+1vancitycommunityinvestmentbank.ca+1.
Some lenders (e.g., Equitable Bank) offer Laneway Home Mortgages structured around projected rental income .
