Financing & Incentives
What a carriage home or secondary suite costs to fund in September 2026: insured refinancing, a draw mortgage or HELOC, the rebates that still apply, and the honest status of the grants.
Written by Serge, Founder, Kelowna Carriage Homes
Where the incentives stand
The Province’s $40,000 Secondary Suite Incentive, a forgivable loan of up to 50% of costs, stopped accepting new applications on 30 March 2025. Existing approvals are being honoured. A federal replacement (announced at up to $80,000 at 2% over 15 years) was paused in Budget 2025 and is not running. We track both and will tell you if either reopens.
How owners fund the build
Insured refinancing. Since 15 January 2025, homeowners can refinance up to 90% of their property’s value (property value cap $2 million) specifically to add up to four rental units. For many owners this is now the cheapest money for a suite or carriage home.
Construction-draw mortgage. The lender advances funds in stages against inspections. Common for a full carriage home at about $350,000 to $550,000.
Home-equity line of credit. Draw as you go at about prime plus 0.5%, near 4.95% in September 2026 with prime at 4.45%. Common for a secondary suite at about $60,000 to $150,000.
CleanBC rebates. Up to about $5,500 for a ductless mini-split heat pump in a suite, stackable with a BC Hydro rebate of up to $2,000. These generally require an existing home, so a conversion may qualify where a brand-new carriage home does not.
“It costs too much” is usually a cash-flow question. With refinancing at mortgage rates and rent close to the Kelowna two-bedroom average of $2,118, many suites are near self-funding from the first tenant.
What the fixed price covers
Named as line items in your contract, so there are no surprises.
Design & engineering
Architectural drawings, structural engineering, energy modelling.
Permits & fees
Building permit, development cost charges, application and inspection fees.
Servicing
Water, sewer, and hydro from the unit to the main line.
Construction
Excavation to finishes, built to current BC Step Code.
Appliances & landscaping
Kitchen and laundry appliances; yard repair at the work area.
Warranty enrolment
2-5-10 home warranty registration on the completed unit.
Financing questions
More on the FAQ page.
Is the $40,000 BC grant still available?
What about the federal $80,000 loan?
How does the insured refinance work?
Do CleanBC rebates apply to a new carriage home?
Sources
BC Housing, Secondary Suite Incentive Program and BC Government, pilot program update (2025).
CMHC 2025 Rental Market Report, Kelowna CMA average rents and vacancy.
CleanBC Better Homes, heat-pump rebate amounts.
Prime rate, Canada, September 2026.
2025 BC laneway-home cost data (industry sources) for the build-cost range.
See what fits behind your house
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Costs, timelines, rents, and incentive amounts on this page are estimates from the sources cited, current as of September 2026. Each is confirmed in writing in your free feasibility study. Licensed and insured; documentation available on request.