August 18, 2025 | Country Life
Can You Build 2 Dwellings on one Property?
As real estate agents, a question we are starting to receive more often is, “Can you build a second home on your property?” The short answer is: potentially, yes. However, this is a yes under the right building code compliance, municipalities and zoning code. Let’s highlight how this works in Ontario and the specific easements and restrictions that determine if you can have 2 dwellings on one property in Ontario.
About to buy a house? Check out our featured listings.
What Does ADU Stand For?
First, you are likely wondering what an Additional Dwelling Unit is – An ADU, for short, is a self-contained living space that is entirely separate from the primary dwelling. For a space to be considered an additional dwelling unit, it must have its own bathroom, kitchen and sleeping/ living area. Think of it as having your own mini living space, whether it is in your basement or on your property.
Two Types of ADUs
External ADU
An external ADU is the kind that you often see at sales centres selling tiny homes. They are those little homes parked on the front lot as you drive by and think, “tiny living might be for me”. In all seriousness, external ADUs are the kind that you park in your backyard (with proper permissions) and are not connected to the main dwelling in any way.
Internal ADU
An internal ADU is commonly found in attics and basements. However, it can also be an addition to the main floor, too. They are accessible through the primary suite; yet, a lot of times, they still have their separate entrance.
Thinking about building an ADU or tiny home? Read these related blogs.
- Building an Accessory Dwelling Unit in Ontario: What to Know
- How Much Does it Cost to Build a Tiny Home?
Can You Build 2 Houses on 1 Lot?
Thanks to Ontario Regulation 462/24, as of late 2024, property owners may have up to three residential units on a single lot. This means you can have the main house plus you can build 2 ADUs on 1 lot.
Can I Build a Guest House on My Property in Ontario?
Now, what about a Guest House? If you are interested in building an ADU for visitors on your property and you live in the Guelph Region, the good news is that you can!
There are some precautions you will want to watch out for, though. First, the ADUs must comply with the existing lot severance boundaries and setback requirements. If they do not, they can be flagged and result in either fines or even removal.
These are costly mistakes you will want to avoid by always referring to the building code in your region. Keep an eye on the building codes for: electrical, plumbing, VAC and fire separation to always stay ahead.
Building Multiple Houses on One Property: Where to Start
If you want to build an ADU on your property, there are specific requirements that will need to be met. For starters, you will have to create a professional building plan, submit it to the municipality, and obtain the required permits for construction before you build. Once you have these permits, you can finally break ground.
Searching for the perfect home? You may find helpful insights in these related blog posts!
- Best Small Towns in Ontario For Families
- How to Buy a Rural House in Ontario
- The Do’s & Don’ts of House Hunting
Steps to Building an ADU In Ontario
Here’s a look at everything it takes to build an ADU in Ontario from a bird’s eye view.
Check the Local and Municipal Zoning Regulations: This is particularly important if you are living in an area with small lot sizes. You will need to ensure that the depth requirements are met.
Engage with Trusted Professionals: If you are looking to buy a home to build an ADU on, you will want to engage with an experienced Realtor who works with investor clients of the same interest. If you already have the property, you will want to begin interviewing builders and architects if necessary.
Submit a Building Permit: The next step, once you have your blueprint, is to submit your plans in hopes of receiving a building permit for your ADU. You are not allowed to build legally without one.
Ensure Compliance to Code: Before you even lift a finger, you need to ensure that the building plans are in compliance with code so that issues do not arise in the future because of poor due diligence.
Pass Inspections: Ensure that your building passes the inspections throughout the process of building it so that there are no future setbacks or issues that arise down the line once the ADU is occupied.
Additional Documents and Information: Now, it is time to account for the final documents and information you need in place, such as home insurance, property taxes and any development charges. Depending on where you are building, municipal support may be available to offset some of the costs.
Key Takeaway
Can you build 2 dwellings on one property in Ontario? The simple answer answer is yes, within the restrictions imposed for that area. Under the Ontario Regulation 462/24, you can add up to 2 ADU’s either both in the main home or one separate from the main home and another in the basement, main floor or attic.
Buying or selling in Guelph? We can help! Reach us by email at info@capstonereps.com or call 519.824.9050.
Ready to Get Started?
Thinking about buying or selling a home in Guelph or Wellington County? Start the conversation with our team today.
