Toronto Laneway Housing Project
The recent changes to the Federal GST/HST New Housing Rebate have created one of the biggest financial opportunities we’ve seen for homeowners building laneway and garden suites.
For projects with construction commenced prior to April 2027, homeowners can recover up to the full 13% HST through a combination of federal and provincial rebates.
On a $500,000 project, that could mean up to $65,000 in savings.
Laneway suites have quickly become one of the most popular ways to add value and flexibility to properties across Toronto. What many homeowners donāt realize, however, is that these projects are legally considered new homes in Ontario.
That classification comes with clear requirements. Any laneway or garden suite must be built by a builder licensed with the Home Construction Regulatory Authority (HCRA) and registered with the Tarion Warranty Corporation. This applies whether you plan to rent the space out, use it for family, or live in it yourself. Under Tarion, it is still considered a contract home.
The City of Toronto is on the verge of enacting significant amendments to the garden suite bylaw at this monthās Planning and Housing Committee. This will eventually go on to the August City Council meeting to be approved. Some of the changes are good, but some might be bad. Here is a look at what is being proposedā¦
Building a laneway or garden suite can be a fantastic way to maximize the use of your property, provide multigenerational living space, or generate rental income. Deciding whether to build a single storey or a two storey suite involves weighing various factors. When you start work with us, we will often design both configurations, and show you the associated construction cost, so you have the details needed to make an informed decision.Ā
As Toronto’s real estate market continues to expand, many homeowners and investors are exploring the potential of laneway and garden suites. These standalone units can add significant value to a property and provide additional living space or rental income. If you’re searching for a property in Toronto with good potential for a laneway or garden suite, hereās what you need to consider when searching for an ideal lot.
