Multigenerational Home Renovation Tax Credit (MHRTC)
This program offers a refundable tax credit of up to $7,500 (15% of eligible expenses, to a maximum of $50,000). To qualify, your ADU must include a private entrance, kitchen, bathroom, and bedroom. It also needs to house either a senior (65+) or an adult eligible for the disability tax credit.
Home Accessibility Tax Credit (HATC) For accessibility upgrades, the HATC provides up to $10,000 in eligible expenses. Features like ramps,
walk-in showers, or wider doorways qualify for the 15% credit. Our design team plans these features from the start.
Home Renovation Savings Program
A joint initiative from Enbridge Gas, Save on Energy, and the Ontario Government, this program offers rebates of up to $12,000 on heat pumps, up to $7,700 on insulation, and additional savings on other energy efficiency upgrades. For internal ADUs, these rebates can meaningfully offset the cost of outfitting your new suite with modern, energy-efficient systems.
Ontario Renovates Program
This program offers forgivable loans of up to $25,000 when creating affordable rental units. In return, the unit must be rented below market rates for five years. Even so, the combination of rental income and forgiven loan often beats typical returns.
Municipal Incentives
Local programs vary. For example, in Mississauga building permit fees are refunded when you’re building or legalizing ADUs, and second and third ADUs are exempt from most municipal charges. We stay up to date on every municipal program so you’ll know exactly what applies to your property.
Property Tax Impact
Many homeowners worry about property tax increases, but the effect is usually smaller than expected.
Our proven incentive navigation process begins during initial consultation. We track all federal, provincial, and municipal programs across service areas. You’ll know potential savings before breaking ground.
Documentation preparation often overwhelms homeowners. We’ll guide you throughout the process, ensuring applications meet program requirements. We maintain templates for common scenarios, reducing processing time by 60%.
Timeline integration prevents delays. Required energy inspections? Scheduled during construction milestones. Pre-approvals? Submitted while permits process. This parallel processing means incentive applications never slow your 6–8 week project timeline.
Post-construction verification ensures you receive every dollar available. We can refer you to a specialist so when tax season arrives, you’ll have organized documentation ready.
Starting January 15, 2025, homeowners can refinance up to 90% of property’s post-ADU value with 30-year amortizations. For a $1 million property adding a $350,000 ADU, access up to $1,215,000 in
financing.
CMHC’s new provisions mean properties up to $2 million qualify for insured mortgages when adding
secondary suites, which can reduce rates.
Renting your ADU transforms regular expenses into tax deductions. Mortgage interest on ADU construction loans becomes deductible against rental income. For $150,000 at 6%, that’s $9,000 in first-year deductions. Property insurance, utilities, and maintenance become deductible proportionally.
Depreciation through Capital Cost Allowance shelters rental income from taxation. A $150,000 ADU might generate $6,000 annual depreciation deductions. Operating expenses including advertising, property management software, and maintenance supplies qualify. Our clients identify $3,000–$5,000 in overlooked deductions annually.