Grants, Loans, and Incentives for Building an ADU or Rental Suite in Squamish

Financing & Incentives for Building an ADU or Rental Suite in Squamish

Maximize Your Savings with Government Grants, Loans & Incentives for ADU Construction

Building a carriage house, laneway home, or backyard suite in Squamish is one of the smartest ways to increase your property value, generate rental income, or create private space for family members. But let’s be real, building a high-quality, fully custom ADU isn’t cheap. That’s where NewlinesADU comes in.

We help homeowners take advantage of every available grant, forgivable loan, low-interest financing program, and permit fee reduction to offset costs and make your ADU project as affordable as possible, without compromising quality.

Whether you’re investing in rental income, preparing for multi-generational living, or future-proofing your property, these programs can cover up to $120,000 of your project costs.

Government Grants & Loan Programs You Should Know About

BC Secondary Suite Incentive Program (SSIP)

Up to $40,000 in Forgivable Loans
The BC Secondary Suite Incentive Program offers forgivable loans covering up to 50% of eligible construction costs, to a maximum of $40,000.

This is essentially free money for homeowners who rent their new carriage house, laneway home, or secondary suite at below-market rates for at least five years.

Who Qualifies?
✅ Homeowners building a new legal secondary suite or detached ADU
✅ The property must be your primary residence (no investment properties)
✅ The unit must be rented at below-market rates for 5 years
✅ The ADU must meet local zoning & BC Building Code requirements
✅ You cannot have previously received a grant under this program

This program is perfect for Squamish homeowners looking to build a luxury ADU for rental income, while cutting down the upfront costs.

Low-Interest Loans for Rental Suites

Up to $80,000 in Flexible Financing

In addition to forgivable loans, the province also offers low-interest financing up to $80,000 to help homeowners cover construction costs for rental units. This loan program is designed to make adding rental housing easier for homeowners by offering:

✅ Low interest rates
✅ Flexible repayment terms that align with rental income
✅ Compatibility with the forgivable loan, so you can stack both programs for maximum savings.

Real Cost Example for a Premium ADU

With both programs combined, you could reduce your upfront costs by over $120,000, making high-end ADU construction far more accessible.

Squamish-Specific ADU Incentives

Pre-Reviewed ADU Plans & Faster Permits

If you’re building your ADU in Squamish, you can save time and money by using one of the District’s pre-reviewed ADU designs. These designs were selected through the Squamish ADU Design Competition and have already passed key design reviews.

✅ Shorter permit review times — saving weeks or months
✅ Reduced design costs — you start with ready-to-go plans
✅ Guaranteed compliance with Squamish zoning & design standards

At NewlinesADU, we build modular, pre-reviewed and fully custom ADUs, giving you maximum flexibility.

 Permit Fee Reductions for Energy-Efficient ADUs

If you opt for high-performance, energy-efficient construction that exceeds BC Energy Step Code minimums, you could qualify for:

✅ Reduced permit fees
✅ Potential property tax benefits, depending on your final design and energy efficiency rating

Our design and construction methods are already optimized for energy efficiency, durability, and long-term savings, so it’s easy for us to help you tap into these extra incentives.

 
Who Qualifies for These Programs?

Not every property or project qualifies, here’s a quick summary:

✅ Qualifies
- Homeowners adding a new legal ADU or suite on their primary residence
- Detached ADUs: carriage homes, laneway houses, backyard suites
- Attached ADUs: basement suites, secondary suites inside existing homes
- Units rented as long-term rental housing at below-market rates (for forgivable loan)

❌ Doesn’t Qualify
- Investment properties (where the owner does not live on-site)
- Short-term rentals like Airbnb or VRBO
- Unpermitted/illegal suites
- Renovating existing suites (the forgivable loan only applies to new suites)
- ADUs built purely for personal/family use (without rental income)

Pro Tip: If you plan to rent your ADU for the first 5 years, you can switch it to family use later,  and still keep the $40,000 forgivable loan.

 
We Handle the Paperwork - You Get the Savings

Most homeowners miss out on tens of thousands of dollars in government incentives because they either don’t know these programs exist or assume the paperwork is too complicated.

At NewlinesADU, we:

✅ Review your property & plans to identify every available program
✅ Design & build your ADU to ensure it meets all eligibility criteria
✅ Follow up to make sure you stay compliant and keep your forgivable loan
✅ Track local and provincial programs so you’re always up-to-date

With one trusted partner handling design, permits, financing guidance, and construction, you can focus on the exciting part, imagining how you’ll use your new space.

See How Much You Could Save

Let’s talk numbers! With our Free Lot Assessment and ADU Financing Review, we’ll show you:

✔️ Estimated total project cost
✔️ How much you could save with grants, loans & fee reductions
✔️ Financing options (HELOC, construction loans, government programs)
✔️ How quickly you could break even with rental income

Contact NewlinesADU Today

We’re here to make high-quality ADU construction in Squamish affordable, efficient, and stress-free. Book your free consultation today and let’s turn your backyard into your smartest investment yet.