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CMHC 90% Refinance Program: Turn Your Brampton Home Into a Legal Secondary Suite in 2026

Mortgages · Updated 2026-07-25 · By Richard Addo-Kessie, Realtor & Mortgage Agent

Direct answer: since January 15, 2025, CMHC has allowed homeowners with an insured mortgage to refinance up to 90% of their home post-renovation value - up to $2 million - specifically to build a self-contained secondary suite, and that program remains active in 2026. For Brampton homeowners sitting on equity and a basement that could become a legal rental unit, this is one of the more useful financing tools available right now.

## What the Program Actually Offers

The CMHC refinance option lets you borrow against what your home will be worth after the secondary suite is built, not just what it is worth today. In practice that means the projected rental unit itself helps fund its own construction. You can amortize the new mortgage over up to 30 years, which keeps monthly payments more manageable than a shorter-term renovation loan or a HELOC draw at a higher rate. This is distinct from the federal Secondary Suite Loan Program announced in the 2024 Fall Economic Statement - that separate loan product had not launched as of early 2026 according to government budget documents, so do not build your plans around it until a lender confirms it is actually available.

## Why This Matters More in Brampton Than in Many GTA Markets

Brampton detached and semi-detached homes commonly have basements with enough ceiling height and existing plumbing rough-ins to convert into a self-contained unit without a full structural overhaul. Combine that with Brampton's recent adoption of as-of-right multi-unit zoning policy - which removes the rezoning and public-hearing hurdle for adding units on many lots - and the regulatory and financing pieces are both more favourable this year than they have been in the past. A legal basement suite also directly supports your qualifying income: many lenders will count a documented rental income projection toward your debt service ratios, which can improve what you qualify for on the refinance itself.

## What Self-Contained Actually Requires

To qualify under the CMHC program, the suite needs its own kitchen, bathroom, living space and a separate entrance, and it must be suitable for full-time, year-round occupancy - not a seasonal or partial space. It also has to comply with Brampton zoning and Ontario Building Code requirements for a second dwelling unit, which typically means fire separation, egress window requirements, and proper electrical and plumbing permits. This is not a project to start without permits; an insured refinance appraisal will expect to see a legal, code-compliant unit, not an informal one.

## The Numbers Worth Modelling Before You Commit

- Current mortgage balance and current appraised value - your starting equity position.
- Estimated post-renovation appraised value - what an appraiser expects the home to be worth with a completed, legal suite.
- Realistic construction cost - basement conversions in the GTA commonly run well into six figures depending on scope, so get contractor quotes before assuming the numbers work.
- Projected rental income - and how much of it your lender will actually count toward qualifying.

A mortgage agent can model these together before you spend a dollar on construction, so you know whether the refinance actually covers the build, or whether you would be carrying a shortfall.

## Who This Makes the Most Sense For

Homeowners who already have meaningful equity, a basement with reasonable ceiling height and existing rough-in plumbing, and a genuine interest in either rental income or multi-generational living are the best fit. It makes less sense if your current mortgage is near the top of what you qualify for already, or if your lot has restrictions that limit what you can build - which is exactly why confirming zoning eligibility comes before applying for the refinance, not after.

## The Bottom Line

This is one of the few financing tools where the project largely pays for its own construction through the increased appraised value, but it only works if the numbers are modelled honestly and the suite is built to a standard that actually qualifies. Before you talk to a contractor, talk to a mortgage agent who can tell you what your home would need to appraise for, and whether your current file supports getting there.

Frequently asked questions

Is the CMHC secondary suite refinance program still available in 2026?

Yes. The program launched January 15, 2025, allowing insured mortgage refinances to access up to 90% of a home post-renovation value, up to $2 million, to fund a self-contained secondary suite. This is separate from the federal Secondary Suite Loan Program, which was announced but had not launched as of early 2026 - confirm current program status with your lender before planning around either one.

How much can I actually borrow to build a basement apartment in Brampton?

Under the CMHC program, you can refinance up to 90% of your home value after the suite is completed, amortized over up to 30 years. The exact amount depends on your current mortgage balance, your home value today, and the appraised value once the suite is built - a lender or mortgage agent can model this against your specific numbers.

Does the secondary suite have to be a legal basement apartment?

It must be self-contained with its own kitchen, bathroom, living space and entrance, suitable for full-time year-round occupancy, and compliant with City of Brampton zoning and building code requirements. A casual in-law space that does not meet those standards would not qualify for the insured refinance.