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Investors & Secondary Suites

Basement Apartment Programs

How to legally add a basement apartment in Ontario, plus available grants and financing.

Who it's for

Homeowners & landlordsOntario / Canada

Official source

Government of Ontario ↗Verify current details here

Last reviewed

2026Subject to change

Download — Basement Apartment Programs Fact Sheet

Free quick-reference guides (PDF, courtesy of TRREB). Save or print for easy reference.

⬇ Provincial Guide on Second Units (PDF) ⬇ Second Suites in Toronto — Q&A (PDF)

Overview

Ontario actively encourages second units (basement apartments). As-of-right rules let most homes add a second unit, subject to local zoning, fire and building code. Some regions offer forgivable loans (e.g. Ontario Renovates) to create affordable units.

Eligibility

✓  Detached, semi or townhouse permitting a second unit
✓  Compliance with fire code, building code and zoning
✓  Region-specific income limits for grant programs

Benefits

★  Rental income to offset your mortgage
★  Some regions offer forgivable loans (Ontario Renovates)
★  Increases property value

How to Apply

→  Verify zoning + second-unit rules with your city
→  Obtain building permits and pass inspections
→  Register the unit where required
Official program details — Government of Ontario ↗

Basement Apartment Programs — FAQs

Common questions about this program.

Are basement apartments legal in Ontario?

Generally yes — most homes can add a second unit, but it must meet zoning, building and fire code to be legal.

Related Resources

All Government Programs → Free Home Evaluation → Buyer Resources → Mortgage Calculator → Land Transfer Tax Calculator → FHSA / RRSP / TFSA Guide →

Buying, selling, investing or leasing in Ontario?

Contact Tej Thakor, Broker of Record at Royal LePage Terra Realty, for professional real estate guidance across the GTA and surrounding areas — in English, Hindi & Gujarati.

This page is for general informational purposes only and is not legal, tax, or financial advice. Program details, eligibility, amounts, and deadlines change frequently — confirm current information with Government of Ontario (linked above) and consult a qualified professional before relying on this information.
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