How to Benefit from the Multigenerational Home Renovation Tax Credit in Ontario
- wsrenk
- Mar 24
- 4 min read
By William Srenk
As housing costs continue to rise across Ontario, families are looking for creative solutions to make their homes more affordable and functional. One increasingly popular option is multigenerational living—where multiple generations of a family live together in the same home. Whether it’s parents moving in with their children or creating space for elderly relatives, multigenerational living is an effective way to stay connected while cutting down on living costs.
To help make these kinds of arrangements more feasible, the Canadian government introduced the Multigenerational Home Renovation Tax Credit (MHRTC) in 2023. This refundable tax credit helps offset the cost of creating a separate living space in your home for a senior (65+) or an adult eligible for the disability tax credit.
Here’s why choosing Elliam Contracting for your renovation needs makes sense and how the MHRTC can benefit you in Ontario’s York Region, Simcoe Region, Peel Region, and cities like Barrie, Newmarket, Orangeville, Caledon, Bolton, Nobleton, Aurora, and New Tecumseth.
What is the Multigenerational Home Renovation Tax Credit?
The MHRTC is a federal program designed to help families offset the cost of creating a self-contained living space for seniors or disabled adults in their homes. This could mean adding a suite to the basement (Basement Renovations | Transform Your Space with Elliam Contracting), converting a garage (Garage, Barn & Shop Conversions | Custom Renovations by Elliam Contracting), or even building a new addition to your property (Home Additions | Expand Your Living Space with Elliam Contracting). The renovation must meet certain criteria to qualify:
A separate entrance to the unit
A separate bathroom
A separate sleeping area
The credit offers 15% back on renovation costs, up to $50,000, which means you can receive up to $7,500 in tax relief for your renovation. This is a fantastic opportunity for Ontario families who are looking to create a more accessible and comfortable living space for loved ones.
Why Choose Elliam Contracting for Your MHRTC Renovation?
When it comes to a project as important as a multigenerational home renovation, choosing the right contractor is key. Elliam Contracting specializes in designing and building custom living spaces that are not only functional but also safe and comfortable for seniors and disabled family members. Here’s why you should choose us for your renovation project:
Experience in Multigenerational Renovations: We have years of experience working with families across York Region, Simcoe Region, and Peel Region. From creating basement suites to adding entire in-law apartments, we know how to make your space work for your needs. Our team understands the specific requirements for the MHRTC and can guide you through the process from start to finish.
Local Knowledge and Service: We’re proud to serve communities throughout Barrie, Newmarket, Orangeville, Caledon, Bolton, Nobleton, Aurora, and New Tecumseth. We know the local building codes, regulations, and zoning laws, which helps streamline the renovation process and ensures your project is completed on time and on budget.
Custom Solutions: Every family’s needs are different, and we offer personalized solutions to suit your home and lifestyle. Whether you need a private suite for a parent in Newmarket, a spacious addition in Barrie, or a fully accessible unit in Aurora, we’ll tailor the design to fit your requirements.
Professional & Reliable: At Elliam Contracting, we pride ourselves on our professionalism and reliability. We work closely with you to ensure every detail of your renovation is executed to your exact specifications. Our team handles all aspects of the project, from design to construction, so you can rest easy knowing your home is in good hands.
How to Apply for the MHRTC
Once your renovation is complete, applying for the MHRTC is straightforward. Here's a simple guide:
Complete the Renovation: Ensure that your renovation meets the required standards—separate entrance, bathroom, and sleeping area for a senior or disabled adult.
Keep Records: Save all receipts, contracts, and relevant documentation related to your renovation expenses.
Claim the Credit: When filing your taxes, use the appropriate lines and forms provided by the Canada Revenue Agency (CRA) to claim the credit.
Tip: Before starting your renovation, double-check the eligibility criteria on the CRA website to ensure your project qualifies for the tax credit.
Real Savings: MHRTC Case Study
Let’s look at how the tax credit can make a real difference. Imagine the Wong family in New Tecumseth decides to convert their basement into an in-law suite for their aging parents. The renovation costs $70,000, but they’re eligible for the MHRTC on the first $50,000 of that amount.
Renovation cost: $70,000
Amount eligible for tax credit: $50,000
Tax credit amount: $50,000 × 15% = $7,500
Net cost after tax credit: $70,000 - $7,500 = $62,500
This is a significant savings that can help ease the financial strain of creating a safe, comfortable space for elderly relatives—without sacrificing your financial future.
Additional Benefits Beyond the Tax Credit
Living in a multigenerational household isn’t just about the MHRTC. There are several cost-saving advantages that come with sharing a home:
Shared utilities: Lowering monthly utility bills through shared expenses.
Grocery savings: Pooling resources to buy in bulk and save on groceries.
Childcare: Family members often provide free childcare, reducing the need for expensive daycare.
Long-term care savings: Keeping elderly relatives at home reduces the cost of long-term care facilities.
Shared income: Pooling incomes can help build savings for emergencies and future investments.
Transportation savings: Carpooling and shared transportation cut down on commuting and vehicle costs.
These financial advantages can make multigenerational living even more appealing and help you get the most out of the MHRTC.
Ready to Get Started?
At Elliam Contracting, we are passionate about helping Ontario families create homes that meet their unique needs. Whether you’re in Barrie, Newmarket, Caledon, or beyond, we are here to help you make the most of the Multigenerational Home Renovation Tax Credit. Contact us today to discuss your project and learn how we can help you build a better, more functional home for your family.
Let’s work together to create a space that brings everyone under one roof—comfortably and affordably.
