Saskatchewan Grant for a Legal Basement Suite

The Saskatchewan Housing Corporation (SHC) is providing financial assistance to eligible homeowners and rental property owners to construct or renovate a secondary suite in the form of a forgiveable loan for 50% of the total construction/renovation costs to a maximum of $30,000 per suite. SHC says this will help increase the supply of affordable housing for low to moderate income people.

Some of the Eligibility Criteria:

  • Applicants must own existing property or be in the process of purchasing a newly constructed home (can be upstairs owner occupied or whole house can be rented out)
  • Eligible tenants that have an annual gross household income below the applicable income threshold as set out by SHC.
  • Must keep rents affordable based on SHC rent schedule
  • The secondary suite must be a private, self-contained residential unit that meets all national, provincial and municipal bylaws.


Some of the Guidlines Outlined:

  • Approval time can be 1-4 weeks from time of appplication
  • There is a 5 year time period for the loan to be “forgiveable” (aka you can’t sell the home within a 5 year period)
  • Once approved, the work is completed out of pocket by YOU. You must keep a detailed record of all work performed and all original reciepts must be obtained.
  • Once the work is complete, an inspector from the City of Saskatoon will approve and close your permit. This mist be submitted to SHC for review/approval.
  • You must add SHC to your fire insurance policy as a “loss payee” behind your lender
  • Income/Rent guidelines for tenants for 2013 – Household income can’t exceed $35,000 for a 1 bedroom and can’t be rented out for more than $791/mnth
  • Household income can not exceed $42,000 for a 2 bedroom and can’t be rented out for more than $950/mnth
  • Household income can’t exceed $51,000 for a 3 bedroom and can’t be rented out for more than $1201/mnth
  • You can apply for this grant for up to 5 properties at one time
  • You can re-apply for a new grant on a new home, if you have passed the 5 year period on your previous home

For more information visit the following website and click on Secondary Suite Program:

The City of Saskatoon has also jumped on board offering to rebate permit fees for building, plumbing and development permits as well as a portion of the legalization an existing suite. Home owners who wish to obtain rebates of permit fees for the construction os a new or existing secondary suite, must have a valid building permit or be engaged in the LES process and must apply to the development branch.

For more information visit here:

Most lenders will allow a 50-80% rental offset to help homeowners qualify for a new home. What this means? You can use up to 50-80% of what the basement suite would rent out for, as qualifying income for your deal. Not only are you paying down your own mortgage, but your renters are paying for a part of it too!

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