My Home Second Unit Renovation Program
Eligible homeowners can apply to renovate an existing second unit in their homes.
The My Home Second Unit Renovation Program provides up to a maximum of $20,000 by way of a forgivable loan to eligible homeowners who need to upgrade and legalize their existing second unit. Homeowners can receive an additional $10,000 to homeowners who rent to a tenant referred by the Region of Peel.
We’re currently accepting applications from eligible homeowners.
Program details
A second unit is described as a separate, contained unit that includes a bedroom, kitchen, bathroom and living space within an existing home that can be used for rental purposes. For the unit to be legal, the unit must be registered or licensed by the local municipality, meeting all Building and Fire code requirements. Other requirements that the municipality may require in order to ensure that the unit is legal for its use, must also be met.
The goal of this program is to assist homeowners with transitioning their existing, unregistered second unit to be a legal, registered second unit. The program does not apply to constructing a new second unit in a home.
To receive program funding, you must submit all required documents to support the following eligibility requirements and terms and conditions.
Eligibility requirements
To be eligible for the program, you must:
- Have an existing second unit (for example, an apartment) with a full kitchen, washroom, and separate sleeping area already built, that requires renovation work to be brought up to code. The renovations should not be started until approved into the program.
- Unit must be liveable at time of application. Region of Peel Home Inspector will verify during initial inspection.
- Live in the home that has the existing second unit.
- Have a gross household income of $116,610 or less.
Make your second unit water efficient
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Terms and conditions
To meet the terms and conditions, you must:
- Have a building permit and approved architectural drawings from the applicable municipality.
- Ensure the rent does not exceed an affordable rate in accordance with Canada Mortgage and House (CMHC) market for 10 years. The Region of Peel will provide these rates to the homeowner annually.
- Have an assessed home value that falls within the 90th percentile of your municipality.
- Rent to a tenant with a maximum household income of $65,077 or less.
- Complete mandatory landlord and human rights training provided by the Region of Peel.
- Comply with all municipal bylaws and inspections.
- Not have debt on your home that exceeds the Municipal Property Assessment (MPAC) value for your home.
Once the repairs or renovations have been completed, the second unit must be registered or legally licensed by the local municipality.
Forgivable loans
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.
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 |
|---|---|---|---|
| Detached | $828,000 | $966,000 | $1,064,000 |
| Semi-detached | $543,000 | $534,000 | $610,000 |
| Townhouse | $520,000 | $516,200 | $605,000 |
Rent at an affordable rental rate
You must rent your new registered second unit at an affordable rental rate for a period of 10 years (80% of the average local municipal market rent – as per CHMC market report). Once you have a tenant in place you must follow the rent increase guidelines set by the Ontario government.
Affordable rental rates you can charge for 2022:
| Municipality | 1 Bedroom | 2 Bedroom | 3 Bedroom |
|---|---|---|---|
| Brampton | $1,104.80 | $1,258.40 | $1,350.40 |
| Caledon | $1,104.80 | $1,258.40 | $1,350.40 |
| Mississauga | $1,146.40 | $1,289.60 | $1,377.60 |
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.
Additional costs
There are additional costs to the homeowner that are not covered by the forgivable loan.
These charges may include, but not be limited to, the following:
- Architectural drawings: homeowners are required to submit architectural drawings to the City in order to receive a building permit.
- Building permit: homeowners are required to have a building permit to apply to the My Home Second Units Renovation Program.
- Lawyer fees: homeowners are required to hire a lawyer to register a charge on their property placing the Region of Peel in second position, to secure the funding for renovations.
Complete the mandatory orientation session
Once you have been accepted into the My Second Unit Renovation Program, you’ll need to complete the mandatory orientation session. You’ll learn about the following:
- Residential Tenancies Act
- Ontario’s Human Rights System
- Mental health and stigma
Once you've watched the orientation video, you'll receive an email with a link to an online quiz. The quiz is 10 questions. It covers the material presented in the orientation video.
You must complete the orientation session and quiz to be eligible for program funding.
Contact us
Contact us at 905-791-7800, ext. 8032 or email at secondunitsprogram@peelregion.ca, 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.
