The BC Government, through BC Housing, is now accepting applications for the Secondary Suite Incentive Program(SSIP).
How do you qualify?:
- If you are a registered homeowner, residing in the property, a Canadian citizen or permanent resident, and have a combined gross income under $209,420, then you meet eligibility.
- The property must be worth $2,150,000 or less and be within applicable jurisdictions.
- The suite must be NEW and not preexisting.
- Laneway or garden homes are permitted if the permits were received after April 1, 2023.
The program provides for a refund of construction costs up to $40,000 or up to 50% of the cost of the improvements after completion. This is contingent on the rental being provided to a tenant for at least five years at BELOW MARKET RENTS.
If you consider the present value of the savings from the forgiven loan amount less the loss in the market rental stream due to the below-market rent, there is not strong support for the program. One could take the capital outlay and invest in a government or corporate bond and most likely earn a greater return at less risk.
I recommend speaking to your accountant or tax professional to determine how this program may benefit you.
Are you looking to buy or sell a home?
Please call me at 250-884-3980, and I can give you the expert guidance and help you need to make informed decisions and achieve your housing goals.
First-Time Home Buyer?? Call me at 250-884-3980 to chat about the ZERO-DOWN FINANCING OPPORTUNITY! *Some exceptions apply*
Earn $500 if you refer someone who is looking for real estate services~
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