Financing Your Garden Suite
A garden suite is a real investment — custom builds run $285,000–$450,000+ all-in, prefab from $225,000 — and it deserves a real financing plan. Our all-in quotes, milestone payment schedule, and knowledge of the federal and provincial programs help you fund the build with confidence.
Our Milestone Payment Schedule
At Home Garden Suites, payments are staged against construction milestones, so your money always follows visible, verified progress on your suite. Because the build spans several months, the schedule also spreads the cost — which pairs naturally with a HELOC or staged loan draws.
10%
Deposit
Signed at contract. Starts feasibility, design, and the permit application. Your full schedule is in writing before any work begins.
30%
Foundation & Servicing
Due when the foundation is complete and water, sewer, and hydro connections are in. The suite is visibly out of the ground.
30%
Lock-Up & Rough-Ins
Due when the structure is framed, roofed, and weather-tight, with electrical and plumbing rough-ins inspected and passed.
30%
Final Completion
Due after your final walkthrough, with finishes complete and occupancy in place. Every detail is confirmed before this payment.
How GTA Homeowners Fund a Garden Suite
Most clients combine one of these financing options with our milestone schedule.
01Insured Mortgage Refinance (Up to 90%)
Since January 2025, insured-mortgage rules let qualifying homeowners refinance up to 90% of their property's as-improved value — the value with the finished suite included — specifically to fund a secondary suite, amortized over as long as 30 years. It's the most purpose-built financing option available for a project like this, and often the largest single source of funds. We provide the drawings, itemized quote, and timeline your lender's application requires.
02Home Equity Line of Credit (HELOC)
The most common way our clients fund a suite. A HELOC lets you borrow against your home's existing equity at competitive rates and draw funds as each construction milestone comes due — so you only pay interest on what the build has actually used. Every major Canadian bank offers one.
03Conventional Mortgage Refinance
A conventional refinance lets you borrow against your home's current value — and because a garden suite adds appraisable value and rental income, lenders increasingly assess these projects favourably. It's a simpler alternative to insured refinancing when you don't need the higher 90% loan-to-value; we supply the documentation appraisers and underwriters ask for.
04Savings, Investments & Staged Cash Flow
Because payments are spread across a 6–10 month project in four stages, some clients fund the build directly from savings or planned investment withdrawals without borrowing at all. Your quote shows every milestone amount and its approximate date, so you can plan withdrawals precisely.
Grants, Tax Credits & Incentives
Garden suites are exactly the kind of housing governments want built, and several programs can lower your net cost. Programs change often and funding is limited — always confirm current details before you rely on them.
Multigenerational Home Renovation Tax Credit (Federal)
A refundable federal tax credit worth up to $7,500 for building a self-contained secondary suite — a garden suite qualifies — for a senior family member (65+) or an adult eligible for the disability tax credit. It applies to up to $50,000 in eligible expenses. If you're building an in-law suite, this credit belongs in your budget; confirm your eligibility with a tax professional.
Development Charge Exemption (Provincial)
Under Bill 23 and O. Reg. 462/24, most Ontario residential lots can add up to three units as-of-right, and qualifying additional residential units are exempt from municipal development charges, parkland dedication, and community-benefit charges. For a garden suite this is one of the largest savings available — and it applies automatically, with no application.
Municipal ARU Grant Programs
Several GTA municipalities run their own grant or incentive programs for additional residential units, with terms and funding windows that open and close. Availability varies by city and changes year to year, so check directly with your municipality — our feasibility assessment flags any programs that apply to your address.
Rental Income That Works Like Financing
Not a grant, but often the biggest number on the page: a one-bedroom garden suite in the GTA typically rents for $1,900–$2,600 per month. Many owners size their borrowing so the suite's rent covers the loan payment — the suite effectively finances itself over time.
Important: Government programs, loan terms, and tax credit eligibility change frequently and funding can be limited. Verify current details with theCanada Revenue Agency, your lender, and your municipality, and consult a qualified tax professional before relying on any program. Home Garden Suites provides the itemized quotes, drawings, and receipts these applications and claims require.
All-In Pricing You Can Take to a Lender
One All-In Number
Design, permits, servicing, construction, and finishes in a single itemized quote. No construction-only pricing that grows later — the number you finance is the number you pay.
Lender-Ready Documentation
Banks, appraisers, and program applications all want the same things: drawings, an itemized quote, and a firm timeline. We prepare all three as part of every project.
Protected Investment
Your build is backed by our written 2-year workmanship warranty, full insurance coverage, and WSIB-cleared trades — protection that outlasts the loan paperwork.
Financing & Payment FAQ
Common questions about paying for a garden suite build.
Contact Us
Licensed & insured garden suite builders handling feasibility, design, permits, and construction across Toronto and the GTA.
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