Secondary Suite

Learn about secondary suites in Canadian housing — what they are, their benefits, and the legal requirements for adding one.

Secondary Suite



What is a Secondary Suite?

A secondary suite is a self-contained residential unit within a single-family home, often in a basement or accessory building, designed for rental or extended family use.

Why Secondary Suites Matter in Real Estate

In Canadian housing, secondary suites help increase housing supply, provide rental income, and support multigenerational living.



Key features:
  • Private entrance and living space
  • Full kitchen and bathroom facilities
  • Separate heating and ventilation systems (often required)



Secondary suites must comply with zoning, building, and fire safety codes to be legal. They may also impact mortgage qualification and insurance.



Understanding secondary suites helps buyers, owners, and investors assess income potential and regulatory compliance.

Example of a Secondary Suite in Action

The homeowner added a legal secondary suite in the basement to generate rental income and help qualify for a larger mortgage.

Key Takeaways

  • A self-contained unit within a home
  • Provides rental or extended family housing
  • Must meet legal and safety standards
  • Boosts property value and income potential
  • Affects financing and insurance

Related Terms

Additional Terms

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

More For You

Bank Of Canada Cuts Interest Rate To 2.50% After Three Consecutive Holds
Shutterstock

On Wednesday morning, the Bank of Canada (BoC) announced that they are cutting the policy rate to 2.50% for their July decision. This decision follows three consecutive holds from the central bank in April, June, and July.

The BoC has delivered a total of 225 basis points (bps) worth of cuts since June 2024, including half-point cuts in both October and December of last year.

Keep ReadingShow less
Housing Starts Fall 16% In August, Pointing To Construction Slowdown
Shutterstock

August represented one of the weaker months this year for housing starts, according to the latest data from the Canada Mortgage and Housing Corporation (CMHC). At the national level, the total monthly seasonally adjusted annual rate (SAAR) of starts fell 16% last month, compared to a 4% increase in July.

This marks the largest SAAR decline so far this year and puts the metric well below the six-month trend in housing starts, which increased 1.6% to 267,259 units in August. CMHC’s Deputy Chief Economist, Kevin Hughes, says this gap is notable. "If sustained, this adjustment in the level of housing starts would be consistent with both our forecast and current market intelligence indicating a slowdown in the pace of housing construction."

Keep ReadingShow less
Modern Ease Meets Elegance At This Rosedale Family Home

Set along one of Rosedale’s most admired streets, 111 Roxborough Drive is a rare find: a home that honours its heritage while embracing thoughtful, design-forward updates. The detached home captures the timeless appeal of Rosedale living with a distinctly modern sensibility, blending early-neighbourhood character with a fresh, turn-key finish.

From the street, the house presents with stately confidence, its restored red-brick exterior and newly installed custom south-facing windows hinting at the care that’s been poured into every detail. Recent upgrades include a brand-new roof, complete exterior waterproofing, and newly laid sod in both the front and back gardens, reinforcing not only curb appeal but longevity. It’s the kind of careful restoration that respects the home’s heritage while setting the stage for the next chapter.

Keep ReadingShow less
​A rendering of three landmark towers planned for 501 and 595 W Georgia Street in Vancouver.

A rendering of three landmark towers planned for 501 and 595 W Georgia Street in Vancouver. / Henriquez Partners Architects, Holborn Group

Three months ago, Vancouver-based real estate developer Holborn Group — the Vancouver arm of Malaysia-based real estate giant TA Global — announced their plans for a collection of four towers in downtown Vancouver. Now, full details around those plans have finally been revealed with the City of Vancouver publishing the rezoning application(s) last week.

Altogether, the four towers will deliver 1,939 new homes, 920 hotel suites, 70,130 sq. ft of conference space, Indigenous art, and a significant amount of public amenities. All four towers are designed by Vancouver-based Henriquez Partners Architects and draw inspiration from the rare glass sea sponge reefs that are unique to the Pacific Northwest.

Keep ReadingShow less
Picturesque In Picton: Don't Miss This Restored Queen Anne Gem

In the heart of Picton, just steps from Main Street, an iconic heritage home has been reimagined for modern living — without sacrificing any of its historic soul.

Known as the Bigg/Strong House and dating back to 1900, this Queen Anne beauty at 29 Queen Street is a rare blend of architectural character and contemporary sophistication.

Keep ReadingShow less
Montreal, Ottawa Lead National Home Sales To Best August Since 2021
Shutterstock

August brought a fifth-straight gain in national home selling activity, with the Canadian Real Estate Association (CREA) reporting a 1.1% bump in transactions in its latest statistics package, released Monday morning. Although a 1% uptick is nothing to write home about, it marks “the best month of August for sales since 2021” and contributes to a cumulative 12.5% rise since March, CREA said.

While recent months’ gains were “led overwhelmingly” by the Greater Toronto Area, according to the national association, August’s activity was driven by sales in Montreal and Ottawa — and to a lesser degree, Greater Vancouver.

Keep ReadingShow less
Ana Bailão will be serving as the inaugural CEO of Build Canada Homes.

Ana Bailão will be serving as the inaugural CEO of Build Canada Homes. / Government of Canada

[This is Part Two of a two-part series about the launch of Build Canada Homes, the Government of Canada's new housing entity. Part One is about what the new entity will do and its first round of investments.]

On Sunday, Prime Minister Mark Carney announced the launch of Build Canada Homes, the Government of Canada's new housing entity, and its inaugural Chief Executive Officer will likely be a familiar name to Torontonians: Ana Bailão.

Keep ReadingShow less
​Prime Minister Mark Carney and Minister of Housing Gregor Robertson announcing the launch of Build Canada Homes on Sunday, September 14.

Prime Minister Mark Carney and Minister of Housing Gregor Robertson announcing the launch of Build Canada Homes on Sunday, September 14. / Mark Carney, Twitter

[This is Part One of a two-part series on the launch of Build Canada Homes, the Government of Canada's new housing entity. Part Two is about Build Canada Homes CEO Ana Bailão.]

On Sunday, Prime Minister Mark Carney announced the launch of Build Canada Homes, a new federal housing agency that doubles as the new government's flagship response to the housing crisis.

Keep ReadingShow less
Build Canada Homes Launches With $13B In Funding And First Round Of Projects