Saskatchewan Extends Secondary Suite Incentive Through 2027

Written By Craig Bair

On February 3, 2026, the Government of Saskatchewan announced that the Secondary Suite Incentive (SSI) will be extended through the end of 2027. For homeowners considering a new build or adding a legal secondary suite to their property, this is significant news.

At D&S Homes, we design and construct homes with long term value in mind. The continuation of this incentive creates a powerful opportunity for homeowners to increase functionality, generate rental income, and strengthen resale potential while receiving meaningful financial support from the province.

What Is the Secondary Suite Incentive?

The Secondary Suite Incentive provides eligible homeowners with:

  • Up to 35% of eligible construction costs

  • A maximum grant of $35,000 per qualifying secondary suite

This program supports the construction of one new legal secondary suite at an owner’s primary residence. The structure of the incentive remains unchanged under the extension.

The program will continue accepting applications until December 31, 2027.

Why This Matters When Building a New Home

From a builder’s perspective, this extension provides clarity and confidence.

Homeowners planning a new build can now design with a secondary suite in mind, knowing the program remains in place through 2027. Whether you are:

  • Planning a mortgage helper suite

  • Building a long term income property component

  • Designing a multi generational living space

  • Increasing future resale appeal

The incentive reduces upfront construction costs and improves overall return on investment.

Secondary suites are not simply an add on. When integrated properly during the design phase, they enhance layout efficiency, privacy, and long term functionality.

What Qualifies as a Secondary Suite?

To qualify under the SSI, the suite must be a new, self contained dwelling unit located at the owner’s primary residence. Eligible suite types may include:

  • A suite within the primary residence

  • A laneway suite

  • A garden suite

  • A garage suite

Only one secondary suite per primary residence is eligible.

The suite must include:

  • A full kitchen

  • A bathroom

  • A separate entrance

It must also meet all applicable provincial and municipal bylaws, including required permits, inspections, and legal approvals for operating as a rental unit.

Eligible Cost Period and Timelines

To qualify for the incentive:

  • Eligible costs must be incurred between April 1, 2023 and March 31, 2027

  • Construction must be completed by December 31, 2027

  • Applications must be submitted by December 31, 2027

A cost is considered incurred if:

  • Materials are delivered by March 31, 2027

  • Goods and services are completed by that date

  • In the case of a new home purchase, a portion of construction has been completed

Signing a contract or paying a deposit alone does not qualify. Work must be completed and invoiced.

Eligible Expenses

The incentive applies to costs directly related to constructing a new qualifying secondary suite, including:

  • Engineering and architectural services

  • Construction materials and labour

  • Electrical, plumbing, and mechanical work

  • Interior finishing

  • Standard appliances, capped at $5,000

  • Applicable PST on eligible expenses

Ineligible expenses include:

  • Renovations to an existing secondary suite

  • Renovations to the primary residence

  • Minor appliances

  • Draperies, tools, and cleaning products

Combining With Other Incentives

The SSI is administered by the Ministry of Finance. Eligible applicants may combine it with other provincial programs, including the PST Rebate for New Home Construction, provided all eligibility requirements for each program are met.

Strategic planning at the design and budgeting stage is critical to maximize available incentives.

The Application Process

Before applying, construction must be completed and supported by an occupancy certificate or equivalent issued by the municipality.

Applicants must:

  • Complete the SSI application in full

  • Include all required invoices and supporting documentation

  • Submit the application by December 31, 2027

If a builder is involved:

  • The builder’s federal Business Number and PST vendor license number must be included

  • REALTORS® may verify the builder’s PST license through the PST Registry

  • If grant payment is assigned to the builder, a Notification of Assignment Form is required

  • The party receiving the grant must submit a direct deposit payment request form

Building Smart From Day One

At D&S Homes, we believe in building homes that perform as well financially as they do aesthetically.

Incorporating a secondary suite during the initial design phase allows for:

  • Seamless integration of separate entrances

  • Proper sound separation

  • Code compliant layouts

  • Efficient mechanical planning

  • Optimized construction timelines

Retrofitting later often increases complexity and cost. Designing intentionally from the beginning allows you to take full advantage of the incentive while maintaining architectural integrity.

Planning Your Build Before 2027

With construction required to be completed by December 31, 2027, homeowners considering a secondary suite should begin planning well in advance. Thoughtful design, permitting, and construction timelines all factor into eligibility.

The extension of this program creates a window of opportunity. The key is using it strategically.

If you are considering building a new home with a legal secondary suite in Saskatchewan, now is the time to explore how it can be integrated into your custom build.

Contact D&S Homes to discuss how we can design a home that maximizes both lifestyle and long term value.

Craig Bair
Next

Saskatchewan’s Housing Market Enters 2026 with Stability, Demand, and Lasting Affordability