Grants and Loans for In-Law Suites in Nova Scotia (2026)

Search for "government grant for an in-law suite" and you will find confident articles promising $40,000 forgivable loans and $80,000 federal loans. In Nova Scotia in September 2026, several of those programs no longer take applications.

This guide lists what we could confirm from government sources, the date we checked, and what has ended. Most of the money that still exists is a tax credit or a mortgage product, not a free grant. Programs change quickly, so confirm current status with the administering agency before you count on any of it.

The Short Version (Checked September 16, 2026)

• Canada Secondary Suite Loan Program ($80,000): will not be implemented. It never opened.
• Nova Scotia Secondary and Backyard Suite Incentive Program: ended at the end of March 2026.
• HRM Second Unit Incentive Program: open, up to $13,000 in non-repayable grants, but the application deadline is October 11, 2026.
• Multigenerational Home Renovation Tax Credit: available, refundable, for suites built so a senior or an adult with a disability can live with a relative.
• CMHC insured refinance for secondary suites: available through lenders. This is borrowing, not a grant.

The $80,000 Canada Secondary Suite Loan Program

This is the program behind searches for the "80k secondary suite incentive program". In December 2024 the federal Department of Finance announced it would double the loan limit from $40,000 to $80,000, at 2 percent over a 15 year term, administered by CMHC, with a launch planned for early 2025.

It never launched. Federal Budget 2025 (November 4, 2025) states that the Canada Secondary Suite Loan program, "which is not yet operational, will not be implemented," because it overlapped with the insured mortgage rule changes from January 2025. If a website tells you to apply for the Canada secondary suite loan program in 2026, that information is out of date. There is no application.

What the federal government offers instead

CMHC now insures a refinance of an owner-occupied home to fund a new self-contained suite. According to CMHC, you can borrow up to 90 percent of the property's value, the value must be under $2,000,000, amortization can run up to 30 years, the property can have up to four units in total, and the suite cannot be rented for less than 90 consecutive days. You apply through a lender, not through CMHC directly. It is still a mortgage you repay with interest.

The Nova Scotia Secondary and Backyard Suite Incentive Program

The provincial program launched in 2023 and offered forgivable loans of up to $40,000 for homeowners who built a secondary or backyard suite, including suites for family members aged 65 or older or living with a disability. CBC News reported on May 9, 2026 that the program concluded at the end of March 2026. Housing Minister John White said 624 applications were approved before the end date, and funding remains in place for approved projects still being finished.

If you did not have an approved application before the program ended, you cannot apply now. The province's housing programs page no longer lists a suite incentive for homeowners. Our post on the Nova Scotia Secondary Suite Incentive Program covers how the program worked and what changed.

HRM's Second Unit Incentive Program

If your property is in Halifax Regional Municipality, this is the one real grant still open. It is funded through the federal Housing Accelerator Fund. HRM's page (checked September 16, 2026) says homeowners can apply for up to $13,000 in non-repayable grants for a basement apartment or in-law suite, a backyard suite, or a duplex conversion. It has two parts:

• Halifax Water Fees Grant: up to $2,762.96 toward Regional Development Charges for one secondary unit, plus $150 for the required inspection fee on backyard suites
• Water and Wastewater Infrastructure Grant: up to $10,000 toward new water and sewer connections or well and septic systems

Key rules from HRM's page:

• You must own the property, live there as your primary residence, and be up to date on property taxes
• Your building permit must have an application date after March 18, 2025, and it must be issued before you apply for the grant
• HRM says there are no rent limits, but the suite cannot be a short-term rental for five years after occupancy, or the grant must be repaid
• The grant must also be repaid if you do not have your occupancy certificate by April 1, 2027
• Contractors cannot apply for the grant on your behalf

The deadline matters. Applications close October 11, 2026, and HRM says you must have a valid building permit issued by that date. HRM also warns the program may end sooner if funds run out. If you are only starting design now, plan as if you will miss this intake. Our Halifax Second Unit Incentive Program guide has more background.

The Multigenerational Home Renovation Tax Credit

This federal credit fits in-law suites better than anything else still available, because it is built for families living together. Per the Canada Revenue Agency (page updated January 20, 2026):

• It is a refundable credit claimed on line 45355 of your tax return
• You can claim up to $50,000 in qualifying expenses per qualifying renovation
• For the 2025 tax year CRA lists the credit at 14.5 percent of costs, to a maximum of $7,250. The rate has changed before, so check CRA for the year your renovation is finished
• The suite must let a senior (65 or older) or an adult aged 18 to 64 who is eligible for the disability tax credit live with a qualifying relative aged 18 or older
• The suite must be self-contained, with its own private entrance, kitchen, bathroom and sleeping area, and meet local permits, codes and bylaws
• Only one renovation can be claimed for each qualifying individual in their lifetime

This is a tax credit, not a cheque up front. You pay for the work, then claim it. Keep every invoice and ask your accountant how it applies to your family.

Seniors, Accessibility and Energy Programs

Nova Scotia's Housing Repair and Accessibility Program helps low and moderate income homeowners with accessibility adaptations so seniors and people with disabilities can stay in their homes. It is aimed at upgrades like adaptations and repairs, not at building a new suite, but it may help with accessibility work inside an existing home. Check eligibility with the province.

On energy, the federal Canada Greener Homes Grant is closed. Natural Resources Canada confirms the Nova Scotia stream is closed, with final deadlines at the end of 2025. Efficiency Nova Scotia rebates change often, so check efficiencyns.ca before assuming any rebate applies to your suite.

Budget As If There Is No Grant

An in-law suite is a significant investment, and the honest planning approach is to make the numbers work without incentives, then treat anything you qualify for as a bonus. Our in-law suite cost guide covers what drives the price. For the wider picture on backyard suites, see our backyard suite grants and incentives roundup.

Frequently Asked Questions

Are there free government grants for in-law suites in Nova Scotia?

Very few. As of September 16, 2026, the only non-repayable grant we could confirm is HRM's Second Unit Incentive Program, up to $13,000, for properties in Halifax Regional Municipality, with an application deadline of October 11, 2026. The provincial forgivable loan ended in March 2026.

Is the Canada Secondary Suite Loan Program available in 2026?

No. Federal Budget 2025 confirmed the $80,000 loan program will not be implemented. The federal alternative is CMHC insured refinancing through your lender.

Is there a government grant for a legal basement suite?

In HRM, a basement apartment or in-law suite can qualify for the Second Unit Incentive Program if your permit and application meet its deadlines. If the suite is for a senior or an adult with a disability living with family, the Multigenerational Home Renovation Tax Credit may also apply.

Can I combine the HRM grant and the tax credit?

They are separate programs, and we found no published rule on combining them. Confirm with HRM and your accountant before you count on both.

Talk to a Halifax In-Law Suite Builder

Halifax General Contractors is a licensed, insured and WCB covered design-build contractor with 16+ years of experience, based at 2569 Windsor St in Halifax. We can walk you through permits, timelines and program deadlines before you commit to a plan.

Book your free quote and estimate, or call (902) 454-2273 to talk through your suite.