Is a basement apartment legal in Ontario?
A basement apartment — officially a “second unit” or “secondary suite” — is legal in most Ontario municipalities, including Richmond Hill, Vaughan and across the GTA. But “legal” has a specific meaning: the unit must meet the Ontario Building Code, your local zoning bylaw and fire-safety rules, and the work must be permitted and inspected. A finished basement with a kitchen is not automatically a legal apartment.
The core requirements (2026 Ontario Building Code)
- Minimum ceiling height: 1.95 m (6'5") in habitable rooms; 1.85 m (6'1") under beams and ducts.
- Separate entrance: an independent exit for privacy and fire escape.
- Fire separation: at least a 45-minute fire-resistance rating between the suite and the rest of the house, plus interconnected smoke alarms.
- Egress windows: each bedroom needs a window large enough to climb out of.
- Full facilities: a private kitchen, bathroom and sleeping area.
- Ventilation, electrical and plumbing brought to code and inspected.
Zoning comes first
The Building Code sets construction standards, but your municipality decides whether a second suite is allowed on your lot — and may require extra parking, registration or a minimum lot size. Always confirm zoning before paying for drawings.
Do you need a permit?
Yes. Adding a second unit always requires a building permit. The permit is what gets your drawings reviewed and the work inspected — and it is what makes the suite insurable and rentable without the risk of an order to comply.
What does a legal basement apartment cost?
In the GTA in 2026, converting an unfinished basement into a code-compliant rental unit typically runs $75,000–$120,000, or roughly $80–$150 per square foot. If ceiling height is short and the floor must be lowered, underpinning adds $40,000–$80,000+. The payoff is ongoing rental income and added property value.
Frequently asked questions
Can I rent out my basement without legalizing it?
It is risky. An unpermitted unit can trigger an order to comply, fines, insurance problems and trouble collecting rent or evicting. Legalizing protects both you and your tenant.
How long does it take?
Construction usually runs 6–10 weeks, plus permit-approval time up front.
Build it right with Razco
Razco builds legal basement apartments across Richmond Hill, Vaughan and the GTA — drawings, permits and a fully code-compliant build under one fixed price. See our basement renovation services or call (647) 561-3333 for a free quote.