A-505 Additions & New Builds
Laneway suites built to Toronto’s lane rules
A laneway suite is a detached home at the back of a lot that touches a public lane. In Toronto it can be up to 8 m wide by 10 m long, and a two-bedroom typically costs $400,000 to $700,000.
- Typical cost
- $400,000–
$700,000 - 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-505.1 Why MKC
Why choose MKC for laneway suites
A laneway suite faces the lane, but almost everything else still comes from the street. Firefighters must be able to reach its door within 45 metres of a public street along a clear path, and water, sewer and power usually run from the main house. Those two checks decide whether a lot works, so our engineering department does them before design. Then we prepare the drawings and file the permits, and the suite is built under one contract by the HCRA-licensed builder it names.
Fire access decides the design
The path to the suite’s door must be 0.9 m wide, 2.1 m high and no more than 45 m from the street, or up to 90 m with sprinklers or upgraded fire protection. We only use ECRA/ESA-licensed electrical contractors to perform any electrical work. The wiring is done under an ESA permit.
A-505.2 Scope
What’s included
- A-505.1Lane and lot checkLane frontage, the 8 m by 10 m envelope, setbacks, landscaping and fire access, confirmed first.
- A-505.2Design and drawingsSite plan, lot grading plan, floor plans, elevations and sections to the City’s laneway suite guide.
- A-505.3Permits and approvalsBuilding, plumbing and HVAC permits filed in-house, with a minor variance application if needed.
- A-505.4Services and trenchingWater, sewer and power run from the main house, by City-licensed plumbing and drain contractors.
- A-505.5Structure and exteriorFoundation, framing, fire-rated walls near lot lines, roofing, windows and cladding on the lane side.
- A-505.6Interior and mechanicalKitchen, bathroom and finishes, with heating and cooling by a contractor with a City heating licence.
A-505.3 Cost guide
What it costs
in Toronto & the GTA
A site-built two-bedroom laneway suite in Toronto typically costs $400,000 to $700,000 all-in. One-bedroom suites run $280,000 to $400,000.
Site-built two-bedroom suite, 800–1,000 sq ft, with design, permits and soft costs
Plan on 14 to 20 months from the start of design to occupancy. Toronto reviews complete laneway suite permit applications within 10 business days, and a minor variance adds time. A site-built suite takes about 16 to 28 weeks on site.
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 |
|---|---|
| One-bedroom, single storey350 to 500 sq ft, site-built at the lane. | $280,000– |
| Two-bedroom, two storeys800 to 1,000 sq ft, site-built. Lane-side finishes and servicing cost more than in a garden suite. | $400,000– |
| Prefabricated or modular unitFactory-built unit craned in from the lane. Range published for garden suites; needs crane access. | $200,000– |
| Item | Typical price |
|---|---|
| Hard construction cost, site-built | $450– |
| Survey, design, engineering, permits, insurance | $30,000– |
| Slab-on-grade foundation with frost wall | $40,000– |
Worked examples
- Example 1
800 sq ft two-bedroom suite on two storeys, hard cost plus soft costs
$390,000–$620,000 - Example 2
500 sq ft one-bedroom suite on one storey, hard cost plus soft costs
$255,000–$410,000
What moves the number
- 01Size and storeys
Hard construction runs about $450 to $700 per sq ft. A 350 to 500 sq ft one-bedroom costs $280,000 to $400,000, and a two-storey two-bedroom costs well above that.
- 02Fire access distance
Past 45 m from the street, the suite needs sprinklers designed by a Professional Engineer or upgraded wall construction, plus a strobe light and warning system.
- 03Servicing run
Water, sewer and power are trenched the length of the yard from the main house. A long or obstructed run adds excavation and restoration.
- 04Lane conditions
A narrow lane limits deliveries, concrete trucks and cranes, and walls close to a lot line need fire-rated construction with few or no openings.
- 05Soft costs
Survey, design, engineering, permits and insurance add $30,000 to $60,000. Toronto’s permit fee on a full 160 m² two-storey suite is about $3,026.
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 laneway 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 laneway 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
- New Laneway Suite (building permit application guide), City of Toronto (2026)
- Providing Fire Department Access to a New Laneway Suite, City of Toronto (2026)
- Zoning By-law 569-2013, Chapter 150.8: Laneway 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 laneway 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-505.4 Questions
Questions about laneway suites
Don’t see your question? Call (647) 637-6052 or ask in your estimate request.
How much does a laneway suite cost in Toronto?
Typical cost in Toronto and the GTA: $400,000 to $700,000 (Site-built two-bedroom suite, 800–1,000 sq ft, with design, permits and soft costs). By level of work: One-bedroom, single storey: $280,000 to $400,000; Two-bedroom, two storeys: $400,000 to $700,000; Prefabricated or modular unit: $200,000 to $400,000. Floor area and the number of storeys move the price most, then the fire access upgrades the lot needs, the length of the servicing trench and how easily trucks can use the lane. These are typical ranges, before HST, with prices checked in 2026; your estimate is built from your own measurements and choices.
Does my lot qualify for a laneway suite?
The rear or side lot line has to abut a public lane for at least 3.5 metres. The suite also has to fit: at most 8 metres wide and 10 metres long, at least 4 metres from the house, and generally 1 metre back from the lane. A lot can have one laneway suite or one garden suite, not both. We check the lane, the survey and the zoning for your address first.
How big and how tall can a laneway suite be?
Up to 8 metres wide and 10 metres long, on up to two storeys, with a floor area smaller than the main house’s. Height is limited to 4.0 metres when the suite is less than 7.5 metres from the house, and 6.3 metres when it is 7.5 metres or more away. No parking space is required, but two bicycle parking spaces are.
What are the fire access rules?
Firefighters need a path at least 0.9 metres wide and 2.1 metres high from a public street to the suite’s entrance, no longer than 45 metres, with a hydrant within 45 metres of where the truck would park. The path can be on your own lot or shared with a neighbour under a Limited Distance Agreement. The distance can extend to 90 metres through the lane if the suite has sprinklers or upgraded fire protection, plus an exterior strobe light and a warning system.
Are water, sewer and power connected from the lane?
Usually not. Laneway homes typically have no service connections of their own and rely on the main house, so the pipes and cables run in a trench across the rear yard. We confirm the route and the electrical service with the City and the utility during design. Plumbing and drain work is done by City-licensed contractors, with permits and inspections.
Does a laneway suite need an HCRA-licensed builder and Tarion?
HCRA’s advisory on what counts as a home lists coach and laneway homes built on the same lot as the main house. A licensed builder is required, and the home has Tarion warranty coverage when it is self-contained, built for year-round use to Part 9 of the Ontario Building Code, and built by a builder rather than the owner. Your contract names the HCRA-licensed builder and the Tarion enrolment before work starts.
Do I pay development charges on a laneway suite?
Usually not. Toronto’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 laneway suite, and the owner shows the City that the project qualifies. The City’s former Affordable Laneway Suites loan has been discontinued. The 2026 permit fee is $18.56 per square metre plus $56.33 for the new unit.
Can I see my laneway suite in 3D before work starts?
Yes. We model the suite in 3D on your lot, from the lane side to the rooms inside, so you can see it in place and approve the design before the permit application goes in.
More from
additions & new builds
View all 
A-501
A-502
A-503
A-504G-009 Free estimate
Get a free estimate.
Claim up to $2,500 in savings.
Fill out the form to claim up to $2,500 in savings on your next project. Tell us what you’re planning and we’ll book a visit to see the space. Offer terms