Accessory Dwelling Unit

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What is an Accessory Dwelling Unit?

Accessory Dwelling Units (ADUs) are self-contained living spaces built on the same lot as a primary residence. They can be:

  • Backyard suites (garden suites or laneway homes)

  • Basement conversions

  • Detached or attached units

ADUs are ideal for rental income, multigenerational living, guest houses, or downsizing while staying on your property.

Line drawing of a small house with a door, windows, and a sloped roof.

Types of ADUs

  • Modern backyard with a rectangular swimming pool, surrounded by a paved patio and green lawn, with outdoor seating, a small building, and a house, under a pink sunset sky.

    Detached ADU / Garden Suite

    A standalone unit built in the backyard or side yard of your property. This is one of the most flexible types of ADUs, it’s completely separate from your main house.

    Features:

    Full kitchen, bathroom, bedroom(s), and living space

    Privacy from the main house

    Custom design to match or contrast your main home

    Can include patios, porches, or separate yards

    Considerations:
    You’ll need space on your lot and must meet local setback, height, and size requirements.

  • Modern house with a metal and wood exterior, small bushes in front, dotted with small trees around, concrete driveway, adjacent older brick house, and garage doors.

    Laneway House

    A small, detached home built at the rear of a property facing a laneway (common in Toronto and other cities with alley-access lots).

    Features:

    Separate address and entrance via laneway

    Can include 1–2 floors, depending on zoning

    High resale value and rental demand

    Considerations:
    Zoning regulations are strict - you’ll need city approvals, and utilities may require new connections.

  • A modern blue tiny house with a slanted roof, sliding glass door, and multiple windows, situated in a landscaped yard with purple flowers, green plants, a small white table, a wooden lounge chair, a bicycle, a white car, and a white fence in the background.

    Garage Conversion

    An existing detached or attached garage is transformed into a livable suite.

    Features:

    Makes efficient use of existing structure

    Can include open-concept layouts due to garage dimensions

    Typically more cost-effective than new construction

    Considerations:
    May require structural reinforcement, insulation upgrades, and new plumbing/electrical systems. You may also lose garage storage or parking.

  • Half of a modern house with completed exterior, green lawn, and outdoor patio with people, and the other half as an architectural sketch or blueprint of the house.

    Attached ADU

    An addition built onto your existing house, often at the side or rear, that functions as an independent living unit.

    Features:

    Shares a wall with your main house

    Separate entrance

    Full amenities (kitchen, bathroom, laundry, etc.)

    Can be designed to feel like part of the original home or stand out as a modern extension

    Considerations:
    Must be carefully designed to avoid disrupting your home’s existing layout or flow.

  • Front view of a modern two-story gray house with a garage, surrounded by trees and greenery, with a gravel driveway.

    Over-Garage Suite / Carriage House

    A living space built above a garage, either existing or new. This is sometimes referred to as a carriage house.

    Features:

    Private entry via stairs or side access

    Often includes vaulted ceilings and compact design

    Can be attached or detached depending on garage setup

    Considerations:
    Stair access must meet safety codes. Ideal where lot size is limited but height allowances are generous

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Secondary Suite Loan

As part of the 2024 Fall Economic Statement, the Canadian government is making it easier for homeowners to build secondary suites by offering low-interest loans of up to $80,000.

This program, administered through CMHC, helps Canadians create affordable rental housing, increase property value, and support multigenerational living.

Whether you’re building a unit for rental income, family support, or to enhance your property, this federal program offers the financial flexibility to bring your plans to life, while contributing to affordable housing in your community.

Colorful row of Victorian-style houses with landscaped front yards, trees, and wooden steps leading to front doors, under a blue sky.

CMCH Refinance Mortgage Loan

The CMHC's Refinance Mortgage Loan Insurance program helps homeowners access equity in their homes by refinancing up to 80% of the property's current value.

This can be used for purposes like renovations, debt consolidation, or other significant expenses. By insuring the loan, lenders are protected against default, which may allow borrowers to access better interest rates and terms.

The program supports responsible lending and borrowing by requiring that borrowers meet certain eligibility criteria, including demonstrating the ability to repay the loan.

  • You must apply for a building permit and adhere to local bylaws (like setbacks, height limits, and emergency access). Our in-house design team handles all drawings and submissions to make it stress-free.

  • Yes. ADUs in Ontario are legal rental units, provided they meet building code and fire safety standards. You can use them for long-term rentals or family use.

  • Not necessarily. ADUs can share utilities with the main home or have separate connections depending on your preferences and the design. We’ll go over all the options with you.

  • Yes, an ADU is considered an improvement and will likely increase your property value and therefore your taxes. However, the rental income or use potential often outweighs this.

  • Yes. Most ADUs must be under 645 sq ft (60 m²), though this depends on your lot size, setbacks, and height restrictions. We’ll provide a tailored assessment.

  • Typically, 4–6 months from start to finish, depending on city approval times and site work. We provide a clear timeline at the start of each project.

FAQ’s

Small wooden backyard shed with black double doors, surrounded by potted plants, trees, and patio furniture, in a garden with a wooden fence.

Is an ADU right for you?

Thinking about adding a garden suite, laneway home, or rental unit? We’re here to help. Whether you’re just starting to explore the idea or ready to build, our team is happy to answer your questions and guide you through the process.

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