My Home Second Unit Renovation Program
Help upgrading your second unit in your home.
Starting October 2020
We’re launching a new and improved program to help eligible homeowners renovate an existing second unit in their home to create more affordable rental housing in Peel.
The My Home Second Unit Renovation Program provides up to a maximum of $20,000 by way of a forgivable loan to eligible homeowners, and an additional $10,000 to homeowners who rent to a tenant referred by the Region of Peel.
A second unit is described as a separate, contained unit that includes a kitchen, bathroom and living space within an existing home that can be used for rental purposes. The unit must be registered or licensed by the local municipality as a legal secondary unit, meeting all Building and Fire code requirements as well as other requirements that the municipality may require in order to ensure that the unit is legal for its use.
The funds support improving the health and safety and affordability of the unit, ensuring that all renovations or repairs meet the Ontario Building Code.
Eligible second units
To be eligible for the program, the non-registered second unit must:
- Already exist in the home you live in.
- Can be used for rental purposes.
- Requires repairs or renovations to meet the Ontario Building Code.
Once the repairs or renovations have been completed, the second unit must be registered or legally licensed by the local municipality. The program does not apply to constructing a new second unit in a home.
Forgivable loans are interest-free, and do not have to be paid back if you rent your legal second unit at an affordable rate for a period of 10 years. The loan amount will be registered as a mortgage in second position on the title to your home for 10 years, after which time it will be removed.
To receive up to $20,000, you must:
- Own and live in the home with an existing non-registered second unit.
- Have a household income of $110,456 or less.
- Rent to a tenant with a maximum household income of $61,642 or less.
- Rent at an affordable rental rate in accordance with Canada Mortgage and Housing (CMHC) market report.
- Complete mandatory landlord and human rights training provided by the Region of Peel.
- Have a building permit and approved architectural drawings from the applicable municipality.
- Comply with all municipal by-laws and inspections.
- Not have debt on your home that exceeds the Municipal Property Assessment (MPAC) value for your home.
- Have an assessed home value that falls within the 90th percentile of your municipality.
Debt on your home cannot exceed MPAC assessed value
To be eligible for this program funding, you cannot have more debt or mortgage registrations registered on the title of your home that, in total, are greater than the Municipal Property Assessment Corporation assessed value of your home, from the most recent Municipal Property Assessment Corporation assessment statement. Debt includes:
- your mortgage
- the forgivable loan from the Region of Peel
- any other mortgages or debts that are registered against your home
Your home assessed value (MPAC) must be within the following municipal amounts
The assessed value of your home must be at or less than the 90th percentile for the municipality you live in. The eligible home assessment values by municipality are:
|Type of home||Brampton||Caledon||Mississauga|
Rent at an affordable rental rate
You must rent your registered second unit at an affordable rental rate for a period of 10 years (80% of average local municipal market rent - as per CHMC market report), as follows:
Affordable rental rates you can charge for 2020:
|Municipality||1 Bedroom||2 Bedroom||3 Bedroom|
Additional eligibility requirements may need to be met before final approval can be confirmed.
Eligibility for up to a $30,000 loan
To receive a forgivable loan in the total amount of $30,000, all previously mentioned conditions will apply, plus you must rent to a tenant referred to you by the Region of Peel.
This option provides you with a higher funding amount, assists you with finding a tenant to occupy your second unit and helps you gain access to services and supports through Region of Peel Housing Services.
Financial terms and conditions
To obtain the forgivable loan for the My Home Second Unit Renovation Program, approved applicants must:
Register the loan amount on the title of their property for the 10-year loan forgiveness period.
This requirement ensures that the Region of Peel will receive repayment of the loan amount (less any amount forgiven to date) should the homeowner decide to sell their home within the 10-year term.
Register a mortgage on title in second priority
The Region of Peel will only approve applications for the program funding where we can be registered as at least the second priority on title. Program participants will not be accepted where the Region would be in third, fourth or a lower position on the title registration.
The Region of Peel will conduct a financial assessment of the homeowner’s current registration on title to ensure the home is not over-encumbered based upon the MPAC assessed value.
Requests for postponement will only be granted once a year where the client is refinancing an existing mortgage, or the current property value exceeds all charges on the property.
The Region of Peel reserves the right to deny requests for postponement, in its sole and absolute discretion.
Contact us at 905-791-7800, ext. 8032 or email at email@example.com, if you would like more information, or if you have an existing second unit that is not currently registered with your local municipality.
Recipients of past programs
In response to the increasing and urgent housing needs in the community, we’ve reallocated funding from several programs to support specific initiatives within our Private Stock Strategy. As a result of these changes, 5 grant programs have been discontinued.
Find out more about the 8 Private Stock Strategy initiatives.