What are the ARU rules in Toronto?
Toronto allows multiplexes of up to four units city-wide, six in Toronto and East York and Ward 23, plus one garden or laneway suite per lot. A two-storey garden suite can be 120 m² and 6.3 m tall. Development charges on rear-yard suites can be deferred 20 years.
| Rule | What it says | Source |
|---|---|---|
| Units per lot | Multiplexes up to 4 units city-wide, up to 6 in Toronto and East York and Ward 23 (June 2025) | Official source |
| Garden or laneway suite | One ancillary building per lot with either a garden suite or a laneway suite, not both | Official source |
| Garden suite size | Max 120 m² for two storeys, 60 m² for one storey, less than the main house | Official source |
| Garden suite height | 4.0 m within 7.5 m of the house, 6.3 m when 7.5 m or more away | Official source |
| Laneway suite | Max 10.0 m long and 8.0 m wide, beside a public lane with at least 3.5 m frontage | Official source |
| Fire access | Path from the street, 45 m prescriptive limit, up to 90 m with sprinklers or strobes on pre-approved plans. Cannot be varied | Official source |
| Zoning bylaw | Zoning By-law 569-2013 (Ch. 150.7 garden, 150.8 laneway, 150.10 secondary suites) | Official source |
Servicing: Toronto Hydro raised the basic connection allowance from $1,396 to $3,059 in 2026. Plumbing must meet the Building Code for separate or shared services. (source)
These local rules sit on top of Ontario's province-wide ARU rules. See how Toronto compares in our ARU rules by city comparison.
How do I get an ARU building permit in Toronto?
Apply through Toronto Building Online Services. A zoning review is recommended first, plus a tree declaration, site plan, grading plan and SB-12 energy form. Minor zoning relief needs a Committee of Adjustment variance.
Permit-ready drawings are where most delays start. Our ARU design and permit service prepares the full set and answers reviewer comments.
Are there grants for secondary units in Toronto?
In Toronto, the best local incentive right now is: DC deferral, no cash grant. Second and third units are also exempt from development charges, and the federal CMHC-insured refinance lets owners borrow up to 90% of the finished home's value. Check each program's status below before you plan around it.
| Program | Amount | Conditions | Status |
|---|---|---|---|
| Laneway and Garden Suite DC Deferral | Development charges deferred 20 years | No severance or condo, agreement on title, apply with the Housing Secretariat | Active |
| DC exemption for multiplex units | 2nd to 4th unit exempt (up to 6 plus a suite under a deferral agreement) | Parcel unit limits apply | Active |
| Affordable Laneway Suites Program | Forgivable loan (pilot) | Not applicable | Discontinued |
Federal options apply everywhere, including CMHC-insured refinancing of up to 90% of the finished home's value. Read the secondary suite financing guide.
What rent can a secondary unit earn in Toronto?
The average rent across all unit types in the Toronto CMA was $1,917 a month in October 2025, with 3.0% (2025) vacancy. Bedroom-level averages were not published on the CMHC page we checked. New garden and laneway suites usually rent above the all-unit average.
Source: CMHC Rental Market Survey.
Averages for existing rental units. A new, private suite often rents above the average. Data source.
Can I use the unit as a short-term rental?
Short-term rentals are allowed only in the operator’s principal residence. You cannot rent out the suite short-term while living in the main house. Registration is $390 and entire-home rentals are capped at 180 nights a year. Official rules
Are there pre-approved ARU designs in Toronto?
"Made in Toronto" pre-approved plans for garden and laneway suites: a studio and a 2 bedroom for each type, with three fire-access options, pre-reviewed for the Building Code and zoning. Any change voids the pre-approval. See the designs.
Worth knowing
- A lot can have a garden suite or a laneway suite, not both.
- The City warns owners not to pay development charges up front on a rear-yard suite, because they cannot be credited back.
- O. Reg. 462/24 cut garden suite separation to 4 m and allows 45% lot coverage.
Who do I call in Toronto?
Start with the City of Toronto building or planning office for zoning and permit questions. These numbers come from the municipality's own website.
| Office | Contact |
|---|---|
| Toronto Building | 311 |
| Applications | bldapplications@toronto.ca |
| Short-term rentals | 416-395-6600 |
Our crews build in Eastern Ontario, from Cobourg to Brockville. We keep this Toronto guide as a reference for owners comparing rules. Ask us a question.
Toronto secondary unit FAQ
How big can a garden suite be in Toronto?
A two-storey garden suite can have up to 120 m² of floor area and a one-storey suite up to 60 m², and it must be smaller than the main house. Height is 4.0 m within 7.5 m of the house and 6.3 m beyond that.
Do I pay development charges on a Toronto garden suite?
Rear-yard suites can use the City’s deferral program, which defers development charges for 20 years as long as the lot is not severed or turned into a condo. The City advises not paying them up front, because they cannot be credited back later.
Can I Airbnb my Toronto laneway suite?
Only if it is your own principal residence. Toronto limits short-term rentals to the operator’s principal residence, so you cannot live in the main house and rent the suite short-term.
Sources
Checked October 26, 2026. Rules change; confirm with the municipality before you apply. We are builders, not planners or lawyers.
- City of Toronto: Garden suites
- City of Toronto: Multiplex housing
- City of Toronto: Laneway suites zoning (Ch. 150.8)
- City of Toronto: Pre-approved garden and laneway suite plans
- City of Toronto: Secondary suites permit guide
- City of Toronto: Laneway and garden suite DC deferral
- City of Toronto: Short-term rental operators
- CMHC: Toronto rental market statistics