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Canada Secondary Suite Loan Discontinued: Now What?

​Last Updated: February 26, 2026.

Is the $80,000 Federal Basement Suite Loan still available?

As of early 2026, the proposed Canada Secondary Suite Loan Program (CSSLP) has been officially cancelled and will not be implemented.

The Canada Secondary Suite Loan Program (CSSLP) was officially cancelled during the 2025/2026 federal budget cycle and is no longer accepting applications. While the direct $80,000 loan did not move forward, the federal government pivoted to the 90 percent mortgage refinance program. This remains the primary tool for Saskatoon homeowners to fund legal basement suite construction today.

2026 Canada Secondary Suite Loan Program Status Update

$80K (CSSLP) Loan Program Cancelled - 90% Refinance Program Remains

Many homeowners in Saskatoon planned their projects around the promised $80,000 federal loan program. Unfortunately, the federal government pivoted away from direct lending. If you are seeing information mentioning an early 2025 launch, that information is now obsolete. ​

​At Streetscape Homes, we do our best to monitor these legislative shifts to ensure our clients do not miss out on available programs. While the loan is not available, the other current 2026 incentives are actually more flexible for many homeowners. These programs allow for higher property values and longer repayment terms which can often result in better monthly cash flow.

Government Grants and Mortgage Programs in Saskatoon

While the direct federal loan did not move forward, two powerful financial tools remain available to help you fund a Crafted suite. Our role at Streetscape Homes is to provide the professional documentation and fixed price contracts required to qualify for these third party programs.

1. The 90% Mortgage Refinance Program

Instead of a separate government loan, the federal government updated mortgage insurance rules to allow for an Insured Mortgage Refinance for Secondary Suites. This is often the most effective way to fund a large scale project while maintaining manageable monthly cash flow.
  • Lending Limit: Refinance up to 90% of your home value after the basement suite is built (up to a $2 million property value).
  • ​Interest Rate: Standard market insured mortgage rates provided by your chosen lender.
  • Amortization: Up to 30 years. This longer term allows the rental income from your new suite to often exceed the increase in your mortgage payment.
  • Our Role: We provide the Bank-Ready fixed price contracts and architectural plans your lender needs to appraise the future value of your home.
  • Official Link: Department of Finance Mortgage Insurance Rule Changes

2. The $35,000 Saskatchewan SSI Grant

Regardless of your federal mortgage path, you can apply for the Saskatchewan SSI Grant. This provincial program was officially extended in February 2026. Eligible construction costs can now be incurred until March 31, 2027.
  • Benefit: A direct grant of 35% of costs up to $35,000 back to you.
  • ​Stacking: You can combine this with the 90% refinance mentioned above. Many homeowners use this cash grant to pay down the principal of their mortgage immediately upon project completion.
  • Our Role: We ensure your suite meets the strict National Building Code standards required for the grant and provide the itemized PST invoices needed and help you with your application.
  • Learn More: View our Detailed Guide to the Saskatchewan SSI Grant.

Saskatoon's Legal Basement Suite Specialist Contractors

As your dedicated design-build basement suite contractors, we do not just advise on the process; we execute every stage of your development. We manage the structural requirements, coordinate with City of Saskatoon inspectors, and deliver the National Building Code 2020 compliance needed to unlock your funding. We solve the technical hurdles of legal suite construction so you can reclaim your home's equity with a fixed price contract and a guaranteed outcome.

Why a "Legal" Suite is the Key to Funding

To access the SSI Grant or the CMHC 90% Refinance, your project must be a "Legal Secondary Suite." In Saskatoon, this means meeting the National Building Code (2020) standards, including:

  • Independent heating and ventilation systems.
  • Fire-rated separations between units.
  • ​Direct, independent exterior access.
  • ​​Proper egress windows.​
​​As a certified member of the Saskatoon & Region Home Builders Association (SRHBA), we manage the technical navigation of these requirements. We provide the fixed price contracts and the details your lender needs to meet the exact standards required for your grant and financing approvals.​

Common Questions on Basement Suite Government Programs

Why was the $80,000 Canada Secondary Suite Loan cancelled?​
The federal government discontinued the program in favor of the more flexible 90 percent mortgage refinance rules. By shifting to insured mortgage products, the government allows homeowners to access higher lending limits and longer 30 year repayment terms. This transition provides better monthly cash flow for Saskatoon families than the original short term loan proposal.​
Can I still get a 2 percent interest rate for my suite?​
No. The 2 percent fixed interest rate was a unique feature of the proposed federal loan that is no longer available. However, because the current 90 percent refinance program allows for a 30 year amortization, the monthly cost is often lower than the 15 year repayment schedule required by the original loan.​
Is the Saskatchewan SSI Grant also cancelled?​
No. The Saskatchewan SSI Grant is fully active and was recently extended through 2027. This provincial program remains the most effective way to stack your funding, providing a grant of 35 percent of construction costs up to a maximum of $35,000. You can combine a federal mortgage refinance with this provincial grant to maximize your total return on investment once Streetscape Homes completes your project.
When do the current basement suite programs expire?​
The 90 percent refinance program is part of the permanent federal mortgage framework for 2026. The Saskatchewan SSI Grant has a two phased deadline following its extension. All eligible construction costs must be incurred by March 31, 2027. Final construction must be completed and your application received by the Ministry of Finance on or before December 31, 2027.​
Do I need to requalify for my mortgage to use these programs?
You only need to requalify for your mortgage if you choose to use the 90 percent refinance program to fund construction. Because that path increases your total mortgage amount, your lender must perform a full credit and income qualification. The Saskatchewan SSI Grant itself does not require mortgage requalification, as it is a rebate paid directly to you after the suite is completed and certified.​

Professional Financial Disclaimer

Streetscape Homes is a professional builder and general contractor, not a financial advisor. The scenarios provided are for illustrative purposes. We strongly recommend consulting with a certified mortgage broker or financial professional before making investment decisions. Please see our full Financial Information Notice for details.
​​Enhance your home’s value with a mortgage helper. View our Legal Basement Suite solutions.
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