Government help for multigenerational homes: tax credits, grants and loans in October 2026

The federal Multigenerational Home Renovation Tax Credit

The Multigenerational Home Renovation Tax Credit, or MHRTC, is a refundable federal credit for creating a self-contained secondary unit so that a senior, or an adult who is eligible for the disability tax credit, can live with a relative. The Canada Revenue Agency (CRA) page for line 45355 (dated 20 January 2026) states the credit at 14.5% of costs, up to a maximum of $7,250 for each claim, for the 2025 tax year. Qualifying costs are capped at $50,000 for each completed qualifying renovation. Several people can share a claim for one renovation, up to a combined $50,000.

The people involved must fit the CRA's definitions. The qualifying individual is 65 or older at the end of the tax year of the renovation, or is 18 to 64 and eligible for the disability tax credit in that year. The qualifying relation is 18 or older and is a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece or nephew of the qualifying individual or of their spouse or partner. The home must be in Canada, owned by one of them, and lived in by both within 12 months after the renovation ends. The CRA says the land counted as part of the home is usually limited to half a hectare.

The unit must be a self-contained housing unit with a private entrance, kitchen, bathroom and sleeping area. It must be newly built, or created from living space that did not already meet local requirements for a secondary unit, and it must meet local permits, codes and bylaws. The renovation must be finished in the tax year you claim. Only one renovation can be claimed for a qualifying individual during their lifetime.

The CRA's expenses page lists what counts: goods and services, including work by electricians, plumbers, carpenters and architects, building plans, permits, materials and equipment rentals. It excludes routine repairs, household appliances, financing costs, your own labour and tools, expenses without receipts, and goods or services from a person not dealing at arm's length with you, unless that person is registered for GST/HST. Expenses already claimed under the medical expense credit or the home accessibility credit cannot be claimed again. One CRA example treats a separate apartment built over a garage as a qualifying renovation. The pages do not say whether a whole new duplex or multiplex qualifies, so ask the CRA or a tax professional before counting on the credit for a new build.

Help for accessibility work for an older or disabled family member

The federal home accessibility tax credit is non-refundable and lets a qualifying individual claim up to $20,000 a year in eligible expenses (CRA page modified 24 July 2026). A qualifying individual is 65 or older at the end of the year, or eligible for the disability tax credit. The renovation must be of an enduring nature, be integral to the home, and either improve access or mobility or reduce the risk of harm. The page does not state the credit rate; the CRA worksheet calculates it.

The BC home renovation tax credit for seniors and persons with disabilities is refundable. It is 10% of qualifying expenses up to $10,000, a maximum of $1,000 per tax year, and residents of the same home can share it up to that maximum (gov.bc.ca page updated 29 April 2025). It is open to BC residents who are 65 or older or have a disability on 31 December, and to family members who live with them. The work must be on the principal residence and improve access, mobility or safety. The page names ramps, stair and wheelchair lifts, elevators, grab bars and wheel-in showers as examples, and excludes appliances and general maintenance.

BC Housing's BC Rebate for Accessible Home Adaptations, or BC RAHA, gives low and moderate income households up to $20,000 in rebates for home adaptations when someone in the household has a permanent disability or loss of ability (content current as of 22 September 2026). For homeowners, as of 22 September 2026, household income before tax must be under $146,270 and household assets under $100,000, not counting equity in the home being adapted. The home must be the principal residence of the owner and of the person who needs the adaptations. Adaptations completed before BC Housing approves them are not eligible, and approved applicants have 180 days to finish. Intake runs until funding runs out and renews on 1 April each year.

Property tax help: the home owner grant

The home owner grant lowers the annual property tax on a principal residence. The applicant must be the registered owner, a Canadian citizen or permanent resident, live in BC and occupy the home as their principal residence. Only one grant can be claimed for a property each year (page updated 22 September 2026).

The province states that effective 1 January 2027 the regular grant is $570 for properties in BC, and the total grant for seniors aged 65 or older is $845 (pages updated 22 September 2026 and 3 July 2026). The $200 extra grant for northern and rural properties has ended. As of the page updated 22 September 2026, owners must pay at least $350 of property tax before the regular grant applies, or $100 before the additional grant for seniors, veterans and persons with disabilities.

Value limits cut the grant on higher-value lots. The 2026 threshold is $2,075,000 (as of 22 September 2026). Above it, the grant drops by $5 for each $1,000 of value, reaching $0 above $2,189,000 for the regular grant and above $2,244,000 for the additional grant. A senior owner above the threshold with an adjusted net income of $32,000 or less may qualify for a low income grant supplement. On a multigenerational lot, the partitioned value rule can also help: the assessed value is divided by the number of residences, and laneway homes and the homes of a duplex, triplex or fourplex count, while a suite inside the main home does not.

Property tax deferment for owners 55 and over

Property tax deferment is a provincial loan program. The Ministry of Finance pays the property tax after the due date and places a lien on the property (page updated 17 April 2026). The regular program is for owners who are 55 or older during the year, a surviving spouse, or a person with disabilities. The owner must keep equity of at least 25% of the assessed value, and the home must be their principal residence. A families with children program asks for 15% equity (eligibility page updated 20 March 2026). Every registered owner must agree to the terms.

Interest changed in 2026. Taxes deferred for 2025 and earlier under the regular program carry simple interest at prime minus 2%. Taxes deferred for 2026 and later carry prime plus 2%, compounded monthly. The regular program charges a $60 fee on first application and $10 for each renewal, added to the loan with no interest charged on them (as of the page updated 2 July 2026).

Deferment limits what the family can do with the title. The loan must be repaid in full before the property is sold, before anyone other than a spouse is added to title, before a living owner is removed, and before the property is refinanced or subdivided (page updated 5 May 2026). A parent on deferment who plans to add a child to title, take a new mortgage to build a laneway home, or stratify the lot into a family duplex has to pay off the deferment first. Plan that payment into the project budget.

Programs that are closed or never opened

The BC Secondary Suite Incentive Program is closed. BC Housing's page says that as of 31 March 2025 it is no longer accepting applications, and that all existing pre-approvals and program mortgages will be honoured (content current as of 22 September 2026). The page states the program had offered eligible homeowners 50% of suite construction costs up to $40,000 (as of the page current 22 September 2026) as a forgivable loan, with the suite rented below market rates. Families who see it on older websites cannot apply now.

The federal Canada Secondary Suite Loan Program never opened. Annex 3 of Budget 2025 (page modified 4 November 2025) says the program, which was not yet operational, will not be implemented, because it overlapped with the government's insured mortgage rule changes announced in January 2025.

The federal route that remains is insured refinancing. CMHC's refinance factsheet (2025) lets homeowners add a secondary suite, an in-law apartment or a laneway home with an insured loan of up to 90% of the property value, up to 4 units including the existing home, a lending value below $2,000,000 (as of the factsheet read 24 October 2026), an amortization of up to 30 years and no short-term rental of the suite. Our mortgage post covers construction financing for a full rebuild.