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As housing costs rise, you might be searching for alternative housing and income opportunities, such as multigenerational living and creating rental properties. Fortunately, under the new Ontario housing changes, you can build two dwellings on one property in Ontario. Nick’s Developments is a leading Toronto home builder that’s helping new and existing clients explore multi-dwelling options both legally and beautifully. Read on to discover everything you need to know about building two homes on one lot in Ontario.

Key Takeaways

  • You can build up to three residential units on one property in Ontario.
  • Bill 23 overrides existing zoning by-laws that restrict the number of units you can have on one lot.
  • Additional units you can build include duplexes, triplexes, garden suites, laneway homes, and basement apartments.
  • Municipal requirements will apply for permits, safety regulations, and building code compliance.
  • Multi-dwellings boost property value, provide a source of rental income, and improve comfort for multigenerational families.
  • Working with an experienced Ontario custom builder such as Nick’s Developments guarantees legal, safe, and high-quality multi-unit properties.

What the Law Says About Building Two Homes on One Lot in Ontario

If you want to build two homes on one lot in Ontario, you must first understand the legality of the process. Under Ontario’s Bill 23, More Homes Built Faster Act, you can have up to three homes on one property in any area with municipal water and sewer services and permitted residential uses. The changes are province-wide and override existing local zoning by-laws that restrict the number of units you can build on a single lot. Property owners with an existing single-family home, semi-detached house, or townhouse can build up to two additional units on their property without a zoning by-law amendment. This may include constructing basement apartments, duplexes, triplexes, garden suites, or laneway homes.

Here are a few key details of Bill 23:

Size: There are no size requirements or restrictions for additional units.

Parking: No more than one additional parking space is required per unit.

Location: Additional dwelling units can be built within the home or as stand-alone structures.

Common Ways to Add Multiple Dwellings on One Property

There are a variety of ways to build multiple dwellings on one property, including converting an existing space, such as a basement or garage, to an apartment or by building a side-by-side duplex. Here is a closer look at the benefits of common layouts:

Adding a basement suite and a garden suite to a house is perfect for rental opportunities and multigenerational families. This layout also boosts property value as it increases its square footage and attractiveness to potential buyers.

A side-by-side duplex provides two full-sized homes with separate entrances and living spaces under one roof. This is an ideal layout for families looking to move in aging parents or adult children without compromising privacy. You could also rent out one unit for a secondary income.

Building a laneway suite in your backyard can turn otherwise unused space into a separate rental property or a private residence for family members. This addition boosts property value while preserving the integrity of your home’s existing design.

Can You Build a Second House on the Same Lot in Ontario?

You can build a second house on the same lot in Ontario if your property meets specific zoning criteria, size requirements, and local planning approvals. Building a second home has varying rules and requirements than adding a residential unit, such as a garden suite or laneway suite. This is because secondary units are typically smaller than full houses. They’re also classified differently under municipal rules, which alters property taxes, development fees, and lot size/frontage requirements. Building a complete second house on the same lot as an existing primary residence typically comes with stricter zoning rules and building regulations. Moreover, adding a second house to one lot is often more expensive and doesn’t produce a higher return on investment (ROI) than a secondary unit.

What You Need to Know About Permits, Zoning, and Lot Requirements

To have two houses on one property, Ontario property owners must comply with municipality guidelines. Nick’s Developments assesses each lot’s potential and always makes sure projects adhere to local laws. Here’s a brief overview of the permit, zoning, and lot requirements:

Permits: You need to obtain proper building permits to add a second unit to your property. Working with a licensed contractor is also a common requirement.

Size, Height, & Location: Ceiling height requirements for new construction vary based on the location of the unit, such as a detached vs. basement suite.

Parking Spaces: Bill 23 limits the municipality’s parking space requirements to no more than one additional space.

Municipality Services: Additional dwellings can only be built in areas that have municipal water and sewer services with permitted residential uses.

Building Two Homes on One Lot: What the Ontario Building Code Requires

As with any form of new construction, there are safety requirements involved with building additional dwellings on your property. This includes scheduled building inspections, fire safety inspections, and the inclusion of fire exits. Although not all two-home setups will require major zoning changes, you will need to make sure the unit meets safety codes. Other building code requirements you’ll need to adhere to extend to:

  • Ventilation
  • Ceiling height
  • Foundation strength
  • Working with licensed contractors, architects, plumbers, and electricians

Benefits of Having 2 Homes on 1 Property in Ontario

There’s a wide range of benefits to having 2 homes on 1 property in Ontario. From improved comfort and privacy for multigenerational families to increased property value and monthly income. The following list includes some of the various advantages of multi-dwelling properties:

  • Housing elderly parents or adult children
  • Passive rental income
  • Increasing resale value
  • Avoiding costly land transfer taxes

Why You Need a Custom Home Builder in Ontario for Multi-Unit Projects

It’s vital to have an experienced and licensed Ontario custom home builder handle your multi-unit building project. Nick’s Developments makes sure every aspect of the project, from the planning stage to the final touches, adheres to building codes, municipality guidelines, and safety regulations. This includes staying updated with new housing changes, such as Bill 23. We perform thorough lot assessments, offer custom designs, and work with the best technicians, designers, and builders in the industry. Learn more about how we can help by calling Nick’s Developments today.

We perform thorough lot assessments, offer custom designs, and work with the best technicians, designers, and builders in the industry. Learn more about how we can help by calling Nick’s Developments today.

Final Thoughts

Building two dwellings on one property in Ontario is an excellent investment supported by the province. With the right lot, builder, and approvals, it’s a smart investment that can benefit you and your family. Contact Nick’s Developments to get started today!