Accessory dwelling units , garden suites, laneway suites, and basement apartments , have gone from a regulatory headache to a genuinely accessible option for most Toronto homeowners over the past three years. Here's what's changed and what the rules actually say in 2026.
The Three Types of ADUs in Toronto
1. Basement Apartments (Interior Secondary Suites)
A self-contained unit within the existing footprint of the main house, with its own entrance, kitchen, and bathroom. The most common and generally least expensive ADU type to create.
2. Laneway Suites
A detached unit built at the rear of a property that backs directly onto a public laneway, with vehicle access from that lane. Legal in Toronto since 2018.
3. Garden Suites
A detached unit built in the rear yard of any eligible residential property , no laneway required. Legalized across Toronto in July 2022 under amendments to Zoning Bylaw 569-2013, dramatically expanding eligibility beyond the smaller pool of laneway-adjacent properties.
What Changed in 2025-2026
Following Ontario Regulation 462/24, which took effect November 20, 2024 and set province-wide standards for "additional residential units," Toronto updated its own zoning through By-laws 847-2025 and 849-2025. The practical effect: garden suites and laneway suites are now as-of-right in most residential zones across the city, meaning if your design meets the defined zoning parameters, the City must issue a building permit , no rezoning application or Committee of Adjustment hearing required.
Key Zoning Parameters (2026)
- Maximum footprint: generally the lesser of 10% of lot area or 60 square metres (~645 sq ft), with larger lots permitting up to 90 sq metres in some cases
- Maximum height: approximately 6 metres (about 20 feet)
- Setbacks: typically 1.5 metres minimum from rear and side lot lines
- Lot requirements: minimum frontage around 6 metres, and the property must be connected to municipal water and sewer
- Up to three units total are now generally permitted as-of-right on many residential lots: the main dwelling, one interior secondary suite (basement apartment), and one detached ADU (garden or laneway suite, not both)
Confirm your specific property's eligibility using the City of Toronto's official garden suites information page and laneway suites page, since heritage-designated properties, ravine-adjacent lots, and properties that already have one ADU type face additional restrictions.
What It Costs
Garden suite construction in Toronto typically ranges from roughly $195,000 to well over $300,000 depending on size, finishes, and site servicing complexity , with servicing connections (water, sewer, hydro) often the largest variable cost. Basement apartment conversions are generally the least expensive path, though older homes may require ceiling height modifications, egress window upgrades, and fire separation work to meet Ontario Building Code requirements.
Financing Help
The federal government's Secondary Suite Loan Program offers financing support for eligible ADU projects, and CMHC maintains dedicated secondary suite financing information , worth exploring before committing to a traditional HELOC or renovation mortgage. See CMHC's housing programs page for current details.
The Rental Income Case
With Toronto's rental market showing consistently high demand (see our GTA rental market report), a well-built basement apartment or garden suite can generate meaningful supplementary income, which lenders may factor into your borrowing capacity for a future purchase or refinance , ask your mortgage broker how rental income from an ADU is treated in your specific application.
Frequently Asked Questions
Do I need a rezoning application to build a garden suite in Toronto?
In most cases, no , as-of-right zoning under By-laws 847-2025 and 849-2025 means a standard building permit is sufficient if your design meets the defined parameters.
Can I build both a laneway suite and a garden suite on the same property?
Generally no , most Toronto properties are limited to one detached ADU (either a laneway suite or a garden suite) in addition to an interior secondary suite.
Do I need to live on the property to rent out a garden suite?
No , there is currently no owner-occupancy requirement for Toronto garden suites.
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*Thinking about adding a secondary suite to boost rental income or resale value? Talk to Hamodi Realty about which ADU option makes sense for your property.*