Second unit renovations
My Home Second Unit Renovation Program is on hold
We are no longer accepting applications. The program is under review so we can better support homeowners and residents in need of affordable housing.
You can apply for a maximum of $20,000 to upgrade and legalize an existing second unit in your home. The funding is provided as a forgivable loan.
Homeowners can receive an additional $10,000 if they agree to rent to a tenant referred by Peel Region.
The My Home Second Unit Renovation Program’s goal is to assist homeowners with transitioning their existing, unregistered second unit to be a legal, registered second unit.
This does not apply to constructing a new second unit in a home.
On this page
Eligibility
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.
- Have a liveable unit at time of application. A Peel Region Home Inspector will verify this.
- Live in the home that has the existing second unit.
- Have a gross household income of $146,318 or less.
Before applying review all the terms and conditions relating to your eligibility, financial, and debt details. Access Additional terms and conditions.
Eligibility for up to a $30,000 loan
In addition to all mentioned conditions, you must rent to a tenant referred to you by Peel Region.
This option gives you:
- A higher funding amount.
- Help finding a tenant for your second unit.
- Access to services and supports through Region of Peel Housing Services.
What you need
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 $97,929 or less.
- Comply with all municipal bylaws and inspections.
- Not have debt on your home that exceeds the Municipal Property Assessment (MPAC) value for your home.
- Complete a mandatory orientation session and quiz where you will learn about Residential Tenancies Act, Ontario’s Human Rights system and mental illness stigma.
Once the repairs or renovations have been completed, the second unit must be registered or legally licensed by the local municipality.
How to apply
We are no longer accepting applications for this program.
Program details
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. 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 to ensure that the unit is legal for its use, must also be met.
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.
Additional costs
There are additional costs that are not covered by the forgivable loan. These charges may include, but aren’t limited to:
- Architectural drawings: homeowners are required to submit architectural drawings to the city 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.
Financial terms and conditions
To obtain the forgivable loan for the My Home Second Unit Renovation Program, approved applicants must:
Register a mortgage on title in second priority
We’ll 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.
This makes sure that Peel Region will receive repayment of the loan amount if the homeowner decides to sell their home within the 10-year term.
We will conduct a financial assessment of your current registration on title.
Requests for postponement will only be granted once a year where you’re refinancing an existing mortgage, or the current property value exceeds all charges on the property.
Peel Region reserves the right to deny requests for postponement, in its sole and absolute discretion.
Debt on your home cannot exceed MPAC assessed value
To be eligible for this funding you cannot have more debt or mortgage registrations registered on the title of your home, that are greater than the Municipal Property Assessment Corporation (MPAC) assessed value of your home.
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
Your second unit must be rented at an affordable rental rate for a period of 10 years. Once you have a tenant, follow the rent increase guidelines set by the Ontario government.
Affordable rental rates you can charge for 2023:
| Municipality | 1 Bedroom | 2 Bedroom | 3 Bedroom + |
|---|---|---|---|
| Brampton | $1,297.60 | $1,492.80 | $1,601.60 |
| Caledon | $1,297.60 | $1,492.80 | $1,601.60 |
| Mississauga | $1,300.00 | $1,484.00 | $1,573.60 |