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New Programs Keep Housing Affordable, Promote Construction And Provide Rental Units

Released on October 30, 2023

To help homeowners with rising costs, promote new home construction and increase the availability of rental units, the Government of Saskatchewan today announced details of the Provincial Sales Tax (PST) Rebate for New Home Construction and the Secondary Suite Incentive (SSI) grant program.

"Our government is committed to protecting families and ensuring affordability related to housing," Deputy Premier and Finance Minister Donna Harpauer said. "Our PST rebate helps make home ownership more affordable and our new SSI grant can contribute important secondary income to homeowners to help with affordability as well as increase needed rental units."

The programs are administered by the Ministry of Finance. Those participating in the PST Rebate for New Home Construction may also be eligible for the SSI grant program. Combined, the grant program and rebate will provide qualifying homeowners with up to $46,340 in cost savings. 

“In Canada and Saskatchewan, homeownership has historically been a key driver of wealth accumulation for many families," Regina & Region Home Builders’ Association President and CEO Stu Niebergall said. "One might go as far as saying, homeownership at best is a great investment and at worst is forced savings.”

“We acknowledge it is a challenging time for the Government of Saskatchewan to create such a program, with so many demands on their resources," Saskatoon & Region Home Builders’ Association CEO Nicole Burgess said. "We are very appreciative the Minister of Finance, Donna Harpauer, and her team at the ministry who have been very welcoming to our professional associations over the past years, listening to our concerns and allowing us to work with them on the development of a solution that would also bring value to our economy.”

The PST Rebate for New Home Construction provides a rebate of up to 42 per cent of the PST paid on the purchase of a newly constructed home. The rebate applies to contracts signed with builders, or new housing starts completed retroactive to, or after, April 1, 2023.

The new homes must be occupied by April 1, 2026, and rebate applications must be received by March 31, 2027.

The rebate is available for homes with a total price of less than $550,000 before taxes and excluding the value of the land and price of any furniture, furnishings, and appliances, with some exceptions. The percentage of the rebate is reduced for homes with a total price between $450,000 and $550,000.

Eligibility requirements, how to apply, and further information about the rebate is available at PST Rebate on New Home Construction.

The new SSI grant program will provide 35 per cent of the cost to build a new secondary suite at an owner's primary residence, to a maximum grant of $35,000 per qualifying property.

"Saskatchewan is growing at its fastest pace in more than a century and we need housing stock across a wide range of communities and price ranges," Harpauer said. "A secondary suite can help homeowners with the cost of a mortgage while providing affordable options for renters."  

“We applaud the Government of Saskatchewan on the targeted measures to support home ownership that were announced during the Speech from the Throne,” Saskatchewan REALTORS® Association CEO Chris Guérette said. “As our province experiences its most rapid growth in over a century, the significance of policies that promote affordable home ownership and strengthen our housing continuum cannot be overstated. Saskatchewan is often celebrated as the most affordable province to call home, and these programs are poised to reinforce that standing.” 

"Secondary suites will add much-needed rental supply for the province and our association looks forward to supporting new rental housing providers that arise as a result of this incentive," Saskatchewan Landlord Association CEO Cameron Choquette said.

The qualifying secondary suite must be on the property of a single-family home (e.g., basement suite, garden suite, laneway home, or garage suite) and include a separate entrance, full kitchen and full bathroom and meet all national, provincial, and municipal bylaws, codes and standards to be used as a rental unit. Costs of renovating an existing secondary suite or the primary residence are not eligible.

The SSI will be open to qualifying properties incurring eligible costs retroactive to April 1, 2023, to March 31, 2026, to accommodate projects that have already been initiated. Final applications must be submitted by March 31, 2027.

The necessary regulations, application form, and program guidelines will be published on the SSI webpage in January 2024. More information will be shared at that time.

Eligibility criteria and more information about the SSI grant program is available at Secondary Suite Incentive (SSI) grant program.



For more information, contact:

Jeff Welke
Phone: 306-787-6046

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