Start With The Agreement, Not The Maximum
The $20,000 construction grant, $45,000 affordable grant, $45,000 Indigenous grant, $20,000 new-home grant and repayable loan serve different situations. Similar dollar values do not make them interchangeable.
Why The City Uses Both Grant And Forgivable-Loan Language
The current program names are construction grants. For the three homeowner grant streams, the City says funding is issued after the ARU is constructed and a legal agreement is signed, then registered on title as a forgivable loan. Compliant completion of the 10-year term leads to forgiveness; default can make the amount and accrued interest payable. The separate Additional Residential Unit Loan is repayable on its stated schedule.
The Affordable Grant Changes The Rent Math
The $45,000 Affordable ARU Construction Grant uses 100% of the applicable CMHC Average Market Rent during the required affordability period. Use the London CMHC rent calculator and include vacancy, financing, maintenance, utilities, insurance and taxes.
The Repayable Loan Is Separate
The Additional Residential Unit Loan is not a grant. The current City description provides up to $45,000 with 108 monthly payments beginning one year after the advance. Confirm security, default and advance terms in the current agreement.
Funding Does Not Override The Property
Every route still depends on zoning and property fit, building permits, servicing, grading, access, rental licensing and project timing. Screen the site before committing to design or a builder deposit.
Verify The Permit Window
The City has described temporary building-permit-fee support for eligible permits issued by September 7, 2026, subject to funding, location and program rules. Recheck status immediately before relying on the deadline.
Side-by-side
Grant versus repayable loan
Use the interactive comparison above for all current paths.
FAQ
Common Questions About London ARU Grants And The Separate Loan
What is the current London ARU Construction Grant?
The City currently describes a $20,000 construction grant without an affordable-rent cap, subject to eligibility, agreement and a 10-year rental commitment.
What is the $45,000 Affordable ARU Construction Grant?
It is a separate construction-grant path tied to 100% of applicable CMHC Average Market Rent and a 10-year affordability and rental commitment.
Is the $45,000 ARU Loan a grant?
No. The current ARU Loan is repayable over 108 monthly payments beginning one year after the advance.
Are only detached garden suites eligible?
No. The 2026 expansion considers multiple ARU types on eligible properties. The property and selected program still need City confirmation.
Can a London ARU grant and the repayable loan be combined?
The current City incentive page says the construction-grant program may be stacked with the Additional Residential Unit Loan. Confirm the combined amount, legal agreements, payment timing and property-specific eligibility with City CIP staff before including both in the budget.
When should I contact the City about ARU funding?
Before starting work or signing commitments that depend on the incentive. Confirm the current agreement, approval sequence, permit timing and payment milestones for the selected path.
Why does another City page still call the $45,000 program detached-only?
City pages are not fully synchronized. The newer Community Improvement and Incentives page and April 29 expansion announcement say the grant structure was broadened to all ARU types on eligible properties, while an Affordable Housing summary page still uses earlier detached wording. Use the current incentive page and confirm the agreement with City staff.
Check The Property Route
Funding only helps when the project and site can comply.
Run The London ARU Screen