ADU FUNDING · LONDON, ONTARIO
ADU Grants & Loans in London, Ontario
The City of London funds Additional Residential Units through its Affordable Housing Community Improvement Plan. The programs were restructured during 2026 and the City's own pages currently describe different tiers, so every figure below is attributed to the City source that published it, with that source's date.
Read this before you budget. We could not reconcile the City's published ARU figures as of 2026-10-14. Two official London sources describe different programs with different maximums, and at least one widely-copied figure circulating on builder websites matches neither.
Confirm the current program, the current maximum and your eligibility with the City of London directly before you commit to a build on the strength of a grant.
What the City has published
| Stream | Maximum | Type | Source |
|---|---|---|---|
| Repayable loan — any ARU type, any rent | Up to $45,000 | Repayable | City of London, Affordable Housing Development Programs page last updated 2026-06-17 |
| Forgivable loan / grant — new ARU in a detached structure | Up to $45,000 | Forgivable | City of London, Affordable Housing Development Programs page last updated 2026-06-17 |
| ARU Construction Grant — no rent restriction | Up to $20,000 | Forgivable loan or grant, minimum 10-year rental commitment | City of London newsroom, "City approves expanded incentives to boost housing supply before federal deadline" published 2026-04-29 |
| ARU Construction Grant — affordable ARU at average market rent | Up to $45,000 | Forgivable loan or grant, minimum 10-year rental commitment | City of London newsroom, "City approves expanded incentives to boost housing supply before federal deadline" published 2026-04-29 |
Sources read 2026-10-14. The two City pages above describe overlapping programs in different terms; we have not collapsed them into one number because doing so would require guessing which one supersedes the other.
What these programs generally ask of you
Across the streams the City has described, the recurring conditions are worth knowing before you apply, because they attach to the property and outlast the cheque:
- A multi-year rental commitment. The April 2026 grant streams require a minimum 10-year rental commitment.
- Rent caps on the larger tier. The higher affordable-stream maximum comes with rents capped at average market rates.
- Approval before you build. Municipal incentive programs generally require approval before work starts, and pay out after the unit is complete, inspected and paid for.
- Intended use matters. Short-term rental use is commonly excluded from programs aimed at adding long-term housing supply. Confirm your intended use qualifies before designing around it.
We are a builder, not the City, and none of this is legal or financial advice. Eligibility is determined by the City of London, not by us. Read the City's program page or call their housing development team.
Where the money actually moves the needle
An incentive changes what you net, not what the build costs. Our detached models carry published starting prices with planning and building permits included, so you can work out the real number first and treat any municipal funding as upside rather than as the thing that makes the project viable.
Frequently asked questions
Is there a grant for building an ADU in London, Ontario?
Yes. The City of London runs financial incentives for Additional Residential Units through its Affordable Housing Community Improvement Plan, including both repayable and forgivable streams. The City restructured and renamed these programs during 2026 and its own published pages currently describe different tiers and amounts, so confirm the current terms and the current maximum directly with the City before you budget around a figure.
How much is the City of London ARU grant?
The City has published maximums of up to $45,000 on its Affordable Housing Development Programs page (last updated 17 June 2026), covering a repayable loan for any ARU type and a forgivable loan for a new ARU in a detached structure. A separate April 2026 City announcement described the renamed ARU Construction Grant Program with up to $20,000 where there is no rent restriction and up to $45,000 for an affordable unit at average market rent, each requiring a minimum 10-year rental commitment. Because those sources differ, treat any single number you read online — including ours — as a starting point for a conversation with the City, not as a budget line.
Do I have to rent the ADU out to get the funding?
The grant streams the City announced in April 2026 require a minimum 10-year rental commitment, and the affordable stream caps rent at average market rates. That is a long obligation attached to the property, not just to you, so read the agreement before you take the money. If you are building for a family member or for short-term rental, check whether your intended use qualifies at all.
Can I combine a City grant with a mortgage or HELOC?
Usually yes — municipal incentives are typically paid after the unit is complete and inspected, which means you still need to finance the build itself. Most homeowners fund construction with a refinance, a HELOC or a construction mortgage and treat the municipal money as a rebate that arrives at the end. Our financing guide walks through those options.
Does the grant change what an ADU costs to build?
No. Incentives change what you net, not what the build costs. Our pre-designed detached models start at a published $148,000 with planning and building permits included, and that number is the same whether or not you qualify for anything. Start from the real build cost, then treat any incentive as upside.
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