Three units on one lot: additional residential units in Ontario
Ontario now permits up to three residential units on most serviced urban residential lots. It is the quickest way to add rental income without a severance.
What changed
The More Homes Built Faster Act, 2022 amended the Planning Act so that, on a parcel of urban residential land with full municipal services, up to three residential units are permitted: for example, up to three units in the main house, or two in the house and one in a separate building such as a garden suite or laneway house.
What still applies
- The Ontario Building Code. Fire separations, exits, ceiling heights and egress windows still apply to every unit. Most of the cost is here.
- Zoning standards. Setbacks, height and lot coverage for an accessory building still apply. Some limits on these units were removed by the province, and others remain local, so check your municipality's current by-law.
- Servicing. Water and sewer connections, and in some cases separate meters.
- A building permit for every new unit.
Severance or additional units?
Additional units keep one lot and one owner, and add rental income without a planning hearing. A severance creates lots you can sell separately, but takes longer and needs approval. We test both on the same lot and show you the numbers side by side.
Where ADB fits
Feasibility, drawings, the permit, priced trades and construction administration, on one fixed fee. Book a project review.
General information, not legal or planning advice. Confirm current rules with your municipality.