Building a Backyard Suite in Nova Scotia? You Could Qualify for Over $50K in Incentives
- Andrew Landry
- May 16, 2025
- 3 min read
Looking to Build a Backyard Suite? You Could Qualify for Up to $52,762 in Incentives
Here’s how current programs in Nova Scotia can help you build a more affordable garden suite.
There's never been a better time to act if you’ve been considering a backyard suite—whether for a family member or as a rental unit. Thanks to two major incentive programs available in Nova Scotia, eligible homeowners could receive up to $52,762.96 to help offset construction costs.
At Willow Tree Developments, we specialize in custom garden suites and stay current on all the latest funding opportunities to help our clients make informed decisions. Below is a breakdown of the two programs currently available to Nova Scotia homeowners.
1. Nova Scotia Secondary and Backyard Suite Incentive Program
Maximum: $40,000 (forgivable loan) Available across all of Nova Scotia
This province-wide program is a forgivable loan offered by the Government of Nova Scotia – Department of Growth and Development – Housing Services. It can cover up to 50% of the eligible project cost, up to a maximum of $40,000.
To qualify, homeowners must:
Be the registered owner of the property
Live on the property as their primary residence
Have up-to-date property taxes
Be a Nova Scotia resident (and a Canadian Citizen or Permanent Resident)
Have the funds available to pay for the construction upfront
The loan is forgiven after 5 years if you continue to live on the property and your tenant meets one of the following conditions:
A family member who is 65 years or older or living with a disability
You (the homeowner) are 65+ or living with a disability, and the unit is for a family member
The unit is rented to a low- to moderate-income household at below-market rates
“Family member” includes parents, children, siblings, nieces, nephews, and even in-laws or step-relatives.
2. HRM Second Unit Incentive Program (SUIP)
Maximum: $12,762.96 (grant) Available in Halifax Regional Municipality
Residents of the Halifax Regional Municipality may be eligible for an additional incentive through the SUIP, funded by the Housing Accelerator Fund (HAF). This program includes two grants:
Halifax Water Fees Grant Up to $2,762.96 to cover Regional Development Charges and initial inspection fees.
Water & Wastewater Infrastructure Grant Up to $10,000 to help cover new water and wastewater connections (or on-site well/septic systems).
To qualify for these HRM-specific grants, you must:
Be building your first secondary unit
Own or co-own the property (with consent from all other owners)
Live on the property as your primary residence
Be up to date on property taxes
Have a valid building permit with an application date after March 18, 2025
Important Deadlines to Keep in Mind
To qualify for these grants and incentives, timing is key:
Building permit application must be dated after: March 18, 2025
Grant applications due by: June 1, 2026
Construction must be complete by: October 11, 2026
Ready to Start Planning?
At Willow Tree Developments, we help clients design and build custom garden suites that meet all local permitting requirements and qualify for available incentive programs. Whether you’re building for a family member or creating a future income stream, we can walk you through the process from design to move-in.
Contact us today to learn more about building a backyard suite on your property.