Last updated: July 2026 · By Ontario Design Studio · We verify every program against official municipal sources.
Ontario municipalities are competing to get Additional Residential Units (ARUs) built - basement apartments, secondary suites, and detached garden suites. The result: tens of thousands of dollars in grants, forgivable loans, and fee waivers are available right now, depending on which city your property is in.
This tracker summarizes every major program in the west-GTA and Toronto, with links to the official sources. One rule repeats across every program: you need a building permit - with professional drawings - before any money flows.
2026 Municipal ARU Incentives at a Glance
| Municipality | What You Can Get | Key Conditions |
|---|---|---|
| Burlington | Up to $95,000 forgivable loan (detached ARU) · up to $70,000 (interior ARU) · $15,000 legalization grant · 100% waiver of zoning clearance, building permit & occupancy fees | Housing Accelerator Fund program, runs until Dec 31, 2026 or until funds run out; loans forgiven if unit kept affordable 10 years; approved Zoning Clearance Certificate required and application before construction. See our Burlington permit guide. |
| Hamilton | Grant covering 70% of eligible costs, up to $40,000 per unit, with a first advance of 20% (max $8,000) | ADU & Multi-Plex Housing Incentive Program; property must be in the Housing for Hamilton CIP Area; building permit must be issued before a grant decision. See our Hamilton permit page. |
| Mississauga | Building permit fees refunded for new or legalized ARUs · second and third ARUs exempt from most municipal charges | Applies to detached, semi-detached and townhouse properties (up to two ARUs); units must pass inspection and be registered. See our Mississauga permit page. |
| Toronto | Development charge exemptions for developments up to six units plus a garden/laneway suite · DC deferral program for ancillary suites · free pre-approved garden & laneway suite plans | The former Affordable Laneway Suites forgivable loan is discontinued; savings now come through fee relief rather than cash. See our Toronto permit page. |
| Brampton | No municipal cash grant currently published; value comes from adding up to 3 units per property (second unit + third unit or garden suite) | All units must be registered with the City; conservation-authority sign-off required on regulated land. See our Brampton ARU guide. |
| Federal (all cities) | Canada Secondary Suite Loan Program: up to $80,000 at 2% over 15 years · CMHC refinancing option for suite construction | Announced federally - confirm current intake status with CMHC before budgeting on it; requires permits, drawings, and a rental (non-family) unit. |
Program details change frequently and cities can pause intake when funds run out - always confirm against the official links below before making financial decisions. We update this page as programs change.
The Pattern in Every Program: Permits First
Read the fine print of any program above and the same sequence appears:
- Zoning compliance confirmed (Burlington makes this a formal Zoning Clearance Certificate)
- Professional permit drawings prepared - every program requires a building permit, and every permit requires OBC-compliant drawings from a qualified designer
- Permit issued - Hamilton won't even decide on your grant until this happens
- Apply to the program before (or at the stage required by) construction - applying after you've started is the most common way homeowners lose funding
That middle step is exactly what we do. Ontario Design Studio prepares BCIN-certified drawing packages for basement apartments, secondary suites, and garden suites across the GTA - built to satisfy both the building department and the incentive program's file requirements.
Don't lose funding to a rejected permit.
Tell us your city and project - we'll confirm which incentives your property qualifies for as part of a free quote. Call 416-558-9607 or request your free quote.
Frequently Asked Questions
Which Ontario city has the biggest ARU incentive in 2026?
Burlington - up to $95,000 as a forgivable loan for a detached ARU (garden suite), plus full municipal fee waivers, until December 31, 2026 or until funding runs out. Hamilton's up-to-$40,000 grant is the strongest per-unit cash grant among larger cities.
Do I have to pay these loans back?
Burlington's loans are forgiven if the unit is kept affordable for 10 years - meet the condition and it becomes a grant. Hamilton's program is a grant from the start. The federal program is a repayable (but low-interest) loan.
Can I get funding for a basement apartment that already exists?
Burlington offers a one-time grant of up to $15,000 specifically to renovate and legalize an existing, non-compliant ARU. In other cities, legalizing still unlocks fee relief (like Mississauga's refunds) - see our guide to legalizing unpermitted work.
Does Toronto still offer the laneway suite forgivable loan?
No - the Affordable Laneway Suites Program has been discontinued. Toronto's current support is structural: development charge exemptions and deferrals, plus free pre-approved garden and laneway suite plans.
What do I need before applying to any of these programs?
Zoning compliance for your property, professional OBC-compliant permit drawings, and a building permit application (or issued permit, depending on the program). Start with the drawings - every other step depends on them.
Official Sources
- City of Burlington - Zoning Clearance Certificates
- City of Hamilton - ADU & Multi-Plex Housing Incentive Program
- City of Mississauga - Additional Residential Units
- City of Toronto - Laneway & Garden Suite DC Deferral Program
- City of Toronto - Pre-Approved Garden & Laneway Suite Plans
- City of Brampton - Additional Residential Units
- CMHC - Refinance for Building Secondary Suites
This page is general information, not financial or legal advice. Program terms, funding availability, and eligibility change - confirm details with the administering government body before proceeding.