A-504 Additions & New Builds
Garden suites for Toronto lots without a lane
A garden suite is a detached home in the rear yard of a lot with no public lane. Toronto has allowed them since 2022, and a two-bedroom suite typically costs $295,000 to $625,000 all-in.
- Typical cost
- $295,000–
$625,000 - Timeline
- 16–28 weeks on site
- Permit
- Yes, building permit
- Prices checked
- 2026
- In-house engineering and permits
- Free on-site estimate
- MKC Guarantee: on time, within budget
Free, no-obligation estimate. We typically reply within 24 hours.
A-504.1 Why MKC
Why choose MKC for garden suites
Toronto’s garden suite by-law dates from February 2022, and Council loosened it in 2025 to match Ontario Regulation 462/24: a suite can now sit as close as 4 metres to the house, and the angular plane is gone. What decides most projects is the lot itself: yard size, protected trees and the path firefighters need from the street. Our engineering department checks those first and prepares the drawings and the permit, and the suite is built by the HCRA-licensed builder named in your contract.
What the rules allow on your lot
One suite per lot, up to 60 m² on one storey or 120 m² on two. Height is 4.0 m when the suite is less than 7.5 m from the house and 6.3 m beyond that. We only use ECRA/ESA-licensed electrical contractors to perform any electrical work. The suite’s wiring is done under an ESA permit.
A-504.2 Scope
What’s included
- A-504.1Lot and zoning reviewYard size, setbacks, separation from the house, trees and fire access, checked before design.
- A-504.2Design and drawingsCustom plans, or the City’s free pre-approved plans placed on your lot by our engineering team.
- A-504.3Permits and approvalsBuilding, plumbing and HVAC permits filed in-house, plus a minor variance application if needed.
- A-504.4Foundation and structureSlab-on-grade with frost walls or a full basement, then framing, roofing and the exterior.
- A-504.5Services from the houseWater, sewer and power trenched from the main house, with City-licensed plumbing contractors.
- A-504.6Interior and mechanicalKitchen, bathroom and finishes, with heating and cooling by a contractor with a City heating licence.
A-504.3 Cost guide
What it costs
in Toronto & the GTA
A site-built two-bedroom garden suite in Toronto typically costs $295,000 to $625,000 all-in. Studios and prefabricated units start lower.
Site-built two-bedroom suite, 800–900 sq ft, with design, permits and soft costs
Plan on 12 to 18 months from the start of design to occupancy. Toronto reviews complete garden suite permit applications within 10 business days, and a minor variance adds time. Site-built suites take about 16 to 28 weeks on site; modular units take 4 to 8 weeks.
Every project is different, so your estimate comes with its own written schedule, and we aim to beat the usual industry timeline on every job.
| Level of work | Typical cost |
|---|---|
| Studio or one-bedroom350 to 500 sq ft on one storey. Published garden suite studios start near $195,000. | $195,000– |
| Prefabricated or modular unitFactory-built unit craned into the yard and connected on site. Needs crane access. | $200,000– |
| Two-bedroom, site-built800 to 900 sq ft over two storeys with mid-range finishes. The mid-point is about $450,000. | $295,000– |
| Item | Typical price |
|---|---|
| Hard construction cost, site-built | $400– |
| Hard construction cost, modular | $300– |
| Survey, design, engineering, permits, insurance | $25,000– |
| Slab-on-grade foundation with frost wall | $40,000– |
| Full basement under the suite | $60,000– |
Worked examples
- Example 1
Single-storey suite at the 60 m² limit (646 sq ft), hard cost plus soft costs
$283,500–$495,000 - Example 2
500 sq ft one-bedroom suite, site-built, hard cost plus soft costs
$225,000–$400,000
What moves the number
- 01Size and storeys
Hard construction runs about $400 to $650 per sq ft in Toronto, so a 646 sq ft single-storey suite and a 900 sq ft two-storey suite land far apart.
- 02Foundation
A slab-on-grade foundation with a frost wall runs $40,000 to $55,000. A full basement under the suite runs $60,000 to $100,000.
- 03Site access
Everything reaches the yard past the house. Tight lots with no rear access add about 8% to 15% in labour, and prefab units need crane access.
- 04Design and soft costs
Survey, design, engineering, permits and insurance add $25,000 to $75,000. Toronto’s own permit fee is small: about $1,170 for a 60 m² suite.
- 05Finish level
On a 900 sq ft suite, the step from builder-grade to premium finishes accounts for roughly $80,000 to $150,000 of the total.
Rebates, subsidies and tax credits
- No development chargesToronto development charge exemption for additional units
The City’s development charges by-law exempts a second, third or fourth unit on a residential lot, including one in an ancillary building such as a garden suite, and provincial law exempts additional units as prescribed. The owner must show the City that the project qualifies.
Program rules - Free plansCity of Toronto pre-approved garden suite plans
Standard plans prepared by the City to the Ontario Building Code, free to use since July 2025. Your lot must still meet zoning, and the site-specific parts of the permit review still apply.
Program rules - Up to $7,500Multigenerational Home Renovation Tax Credit (federal)
15% of up to $50,000 of qualifying costs when the work creates a self-contained unit so a senior (65 or older) or an adult eligible for the disability tax credit can live with a qualifying relative. Your own labour does not count; keep contracts and invoices.
Program rules - Up to 90% of improved valueCMHC Refinance for building secondary suites
Insured refinance through a CMHC-approved lender for owner-occupied properties with up to 4 units. The as-improved value must be below $2,000,000, the new unit must be self-contained and it cannot be rented for periods under 90 days.
Program rules
All-in ranges cover design, engineering, permits and construction, before HST. They leave out landscaping, furniture and work on the main house. Plan a contingency of 10% to 15% on top. Prices checked in 2026. Not a quote: your estimate is built from your own measurements and choices.
Where these numbers come from
- Garden Suites, City of Toronto, City Planning (2026)
- Zoning By-law 569-2013, Chapter 150.7: Garden Suites (office consolidation), City of Toronto (amendments to April 30, 2026)
- Expanding Housing Options in Neighbourhoods, City of Toronto, City Planning (2026)
- Building Permit Fees, City of Toronto (fees effective January 1, 2026)
- Building Permit Review Streams, City of Toronto (2026)
- Laneway and Garden Suite Development Charges Deferral Program, City of Toronto (2026)
- City of Toronto taking steps to reduce design costs and speed up building permit approvals, City of Toronto (2025)
- HCRA Advisory: Common Definition of “Home”, Home Construction Regulatory Authority (2021)
- Multigenerational Home Renovation Tax Credit, Canada Revenue Agency (2024)
- CMHC Refinance for Building Secondary Suites, CMHC (2026)
- Published 2026 price guides and GTA contractor price pages (2026)
G-003 How we work
How we deliver your garden suite
- 1
Free Estimate
Tell us what you have in mind. We review your space and goals and give you a clear estimate at no cost.
- 2
Design + Permits
Our in-house designers model your project in 3D so you can see it and settle every choice. Our in-house engineering team prepares drawings, engineering letters and permit applications.
- 3
Material Procurement
We order cabinets, tile, stone, pavers and decking from trusted suppliers such as Unilock, Techo-Bloc, TimberTech and Trex, and schedule deliveries around the work.
- 4
Construction Process
Our crews build to code with site supervision and regular updates, so you always know where things stand.
- 5
Project Completion
Final inspection, walkthrough and clean-up. On time, within budget and beyond expectations. That is the MKC Guarantee.
Plan your project
with a free estimate.
We review your space and goals and give you a clear estimate at no cost.
A-504.4 Questions
Questions about garden suites
Don’t see your question? Call (647) 637-6052 or ask in your estimate request.
How much does a garden suite cost in Toronto?
Typical cost in Toronto and the GTA: $295,000 to $625,000 (Site-built two-bedroom suite, 800–900 sq ft, with design, permits and soft costs). By level of work: Studio or one-bedroom: $195,000 to $400,000; Prefabricated or modular unit: $200,000 to $400,000; Two-bedroom, site-built: $295,000 to $625,000. Size and the number of storeys move the price most, followed by the foundation, how easily crews and materials can reach the rear yard, and the level of finish. These are typical ranges, before HST, with prices checked in 2026; your estimate is built from your own measurements and choices.
Can I build a garden suite on my lot?
Garden suites are allowed on Toronto residential lots zoned R, RD, RS, RT or RM under Zoning By-law 569-2013. The yard needs room for the suite at least 4 metres behind the house, the required setbacks, and a route for firefighters from the street. Properties still under a former municipal zoning by-law are not covered. We check your address before any design work starts.
What changed for garden suites in 2025?
Council amended the 2022 rules in summer 2025 to line up with Ontario Regulation 462/24. The minimum distance from the house is now 4 metres for a suite up to 4 metres tall, the angular plane is gone, and the floor area limit is 60 m² on one storey or 120 m² on two. In most of the city a suite taller than 4 metres still needs 7.5 metres of separation from the house.
How is a garden suite different from a laneway suite?
The lot. A laneway suite needs a lot that touches a public lane for at least 3.5 metres, and it faces that lane. A garden suite sits in a rear yard with no lane, so people, services and firefighters all reach it from the street, past the main house. Toronto allows one or the other on a lot, not both.
Do the trees in my yard matter?
Yes. Toronto protects private trees 30 cm or more in diameter, and City policy says a garden suite should not require removing a healthy protected tree. A Tree Declaration Form goes in with every permit application. We place the suite and its foundation to stay clear of protected roots, and bring in an arborist when one is needed.
Does a garden suite need an HCRA-licensed builder and Tarion enrolment?
Generally, yes. HCRA treats a new, self-contained dwelling built for year-round use on a permanent foundation as a new home, and its advisory lists coach and laneway homes on the same lot as an existing house: a licensed builder is required, and Tarion coverage applies when the suite is built by a builder rather than the owner. The contract records the licensed builder and the Tarion enrolment before work starts.
Can I sell the garden suite separately?
No. Toronto does not permit severing the lot to put the suite and the main house on separate properties, and water and sewer are meant to connect from the main house. Development charges generally do not apply: the City’s development charges by-law exempts a second, third or fourth unit on a residential lot, including one in an ancillary building such as a garden suite.
Can I see my garden suite in 3D before work starts?
Yes. We model the suite in 3D on your lot, with its rooms, windows and finishes, so you can see it from the house and the yard and approve the design before the permit application.
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