Homeowners and homebuyers in Saskatoon, Saskatchewan have more reason than ever to explore secondary suites as the Government of Saskatchewan has officially extended the Saskatchewan Secondary Suite Initiative (SSI) into 2027. This popular grant program continues to help offset construction costs while supporting affordable housing and long-term rental income opportunities.

For anyone considering a mortgage in Saskatoon, this extension could significantly improve affordability, borrowing power, and return on investment.

What Is the Saskatchewan Secondary Suite Initiative (SSI)?

Originally launched in 2023, the Saskatchewan Secondary Suite Initiative provides homeowners with up to 35% of eligible construction costs, to a maximum of $35,000, for building a new secondary suite on their primary residence.

The province recently confirmed a one-year extension, meaning homeowners can incur eligible construction costs until March 31, 2027.

According to Saskatchewan’s Deputy Premier and Finance Minister Jim Reiter, the program has already helped add nearly 1,000 new housing units across the province—making it one of Saskatchewan’s most successful housing initiatives.

Why This Matters for Saskatoon Homeowners and Buyers

Saskatoon has seen the greatest benefit from the program so far. Thanks to more progressive zoning regulations, the city experienced:

• Approximately 350 new secondary suites built in 2023
• Over 860 new suites added in 2024
• More than double the growth in just one year

This makes Saskatoon a standout market for homeowners looking to:

• Offset rising mortgage payments
• Generate rental income
• Increase property value
• Improve mortgage qualification using rental income

As a Saskatoon mortgage broker, this is an important opportunity to help clients structure financing that includes secondary suite income.

What Types of Secondary Suites Qualify?

To qualify for the SSI grant, the suite must be:

• A new, self-contained unit
• Located on the same property as the owner’s primary residence
• Equipped with:
  • A full kitchen
  • A full bathroom
  • A separate entrance

Eligible suite types include:

• Basement suites
• Garden suites
• Laneway homes
• Garage suites

⚠️ Renovations to existing suites do not qualify.

All suites must meet local building codes and safety standards.

How the Grant Helps With Mortgage Affordability

The average rebate issued under the program is around $26,000, which can substantially reduce upfront construction costs.

From a mortgage perspective, this can:

• Reduce overall debt load
• Increase net rental cash flow
• Improve mortgage approval odds
• Help first-time buyers qualify for larger homes
• Offset rising interest rates

A knowledgeable mortgage broker in Saskatoon can help structure financing so that rental income from the suite is included in your mortgage application, potentially increasing how much you can borrow.

Strong Support From Home Builders and Housing Experts

Industry leaders across Saskatchewan have praised the program:

• The Regina & Region Home Builders’ Association called SSI “one of the most effective tools” for increasing housing supply.
• The Saskatoon & Region Home Builders’ Association highlighted the program as a “made-in-Saskatchewan” solution that supports both renters and homeowners.

According to Saskatoon builders, the program not only boosts rental availability but also helps families manage rising housing costs by investing in their homes.

Why Now Is a Smart Time to Act

With the extension confirmed until March 31, 2027, homeowners still have time—but demand is increasing. Rising construction costs, strong rental demand in Saskatoon, and competitive mortgage markets mean planning early is key.

If you’re:

• Buying a home with suite potential
• Refinancing to add a secondary suite
• Building a new home with rental income in mind

…this program could make a major difference to your long-term financial picture.

Talk to a Saskatoon Mortgage Broker Before You Build

Financing a secondary suite requires proper mortgage structuring, lender approval, and income planning. A local Saskatoon mortgage broker can help you:

• Qualify using rental income
• Access competitive mortgage rates
• Structure construction or refinance financing
• Maximize affordability with grants like SSI