Legal Basement Apartments (ADUs) in Hamilton
Add a legal two-bedroom suite to your new home and let the rent help pay your mortgage.
We can build it, permitted and inspected, before you move in.
$125,000 + HST
Approx. price, varies by model and subject to change
2 Bed · 1 Bath
750-800 sq. ft. Suite
About $2,000/mo
Estimated Rent
Built Before Closing
Permitted & Inspected
What Is an ADU?
A second home inside your home
An additional dwelling units (ADU) / additional residential units (ARU) are self-contained apartment within your house, with its own separate entrance, kitchen, bathroom and bedrooms. Ontario allows a second unit in most detached homes. To be legal, it has to meet the Ontario Building Code and get a City permit. That is what makes it rentable, insurable and something a lender can count on.
Built to rental spec
- Two bedrooms with closets
- Full bathroom
- Full kitchen
- Stacked washer and dryer in the suite
- Linen and coat closets
- Electric baseboard heat with separate thermostats
- Its own HRV for fresh air
- Front storage area and furnace room stay accessible to you
Built to be legal
- Separate entrance from the side door
- Egress windows in both bedrooms
- Fire-resistant walls and ceiling with fire-rated drywall
- Self-closing, fire-rated door between the two units
- Interconnected smoke alarms in both units, plus carbon monoxide alarms
- Sound-insulated ceiling between the units
- Separate heating and ventilation, as the code requires in newer homes
- Separate water shut-off for each unit
- Building permit and municipal City inspections
Example Floor Plan
A 793 sq. ft. two-bedroom suite
Every suite is planned around your home design. Here is a typical layout.
Designed for this from day one
Most of our designs include a side entrance with direct access to the basement, designed exactly for this purpose. Tenants come and go without passing through your home, and you keep the storage area and utility room.
793 sq. ft.
11’10” x 11’10”
12’0″ x 10’1″
16’5″ x 14’9″
Bathroom, stacked laundry, HRV, linen and coat closets
The Numbers
What a suite does to your monthly payment
A side-by-side example: the same home, with and without a legal suite finished before closing.
| Â | Without a suite | With a suite |
|---|---|---|
| Total price | $1,100,000 | $1,241,250 |
| Deposit before closing (10%) | $110,000 | $124,125 |
| Due at closing (10%) | $110,000 | $124,125 |
| Mortgage (80%) | $880,000 | $993,000 |
| Monthly mortgage payment | $5,150 | $5,800 |
| Estimated rent | – | ($2,000) |
| Less utilities, insurance, upkeep and vacancy (25%) | – | $500 |
| Net monthly payment | $5,150 | $4,300 |
Illustrative only. Assumes a 5% mortgage rate, 25-year amortization, 20% down and rent of $2,000 a month. Suite price of $125,000 + HST ($141,250). Excludes property tax, insurance on the main home and income tax on rental income.
The takeaway
The home with the suite costs about $850 a month less to pay per month, and you own a more valuable home.
Borrowing Power
How much more you may be able to borrow
Lenders test whether you can afford your mortgage at a higher “stress test” rate (ex. 2% higher), not the rate you will actually pay. With a legal suite, most lenders will also count part of the rent as income. Many banks count 50% of the rent; for two-unit homes, CMHC rules allow up to 100%.
| Without a suite | With a suite (lender counts 50% of rent) | With a suite (lender counts 100% of rent) | |
|---|---|---|---|
| Rental income counted per year | $0 | $12,000 | $24,000 |
| Approximate maximum mortgage | $785,000 | $835,000 | $890,000 |
| Extra borrowing power | – | +$50,000 | +$105,000 |
| Home price that supports (20% down) | $980,000 | $1,045,000 | $1,110,000 |
Illustrative only. Assumes qualification at the stress-test rate of about 7%, up to 39% of income for mortgage, expenses of 25% of rent, no other debts, and rent of $2,000 a month. Lender policies vary.
Talk to a mortgage broker early
How much rent your lender counts makes a real difference. A broker can compare lenders and get you pre-approved with the suite included.
How It Works
Three steps to a home that helps pay for itself
Choose a design
Pick a home design with a side entrance to the basement. Our team will confirm which lots and designs work.
Add the suite
Add the suite package to your agreement of purchase and sale, so it is included in your price and your mortgage.
Ready at closing
We build the suite with a building permit and City inspections, so it is finished and ready to rent when you move in.
Who It's For
More than a rental
A mortgage helper
Rent from the suite can cover a large part of your monthly mortgage payment.
Family close by
A private home for aging parents or adult children, with their own entrance and kitchen.
Flexibility
Use it for family now and rent it later, or the other way around. A legal suite also adds appeal when you sell.
Questions
Legal Basement Apartment FAQ
Is the suite legal?
Yes. We build it to the Ontario Building Code with a City of Hamilton building permit and inspections. That is what lets you rent it, insure it, and have a lender count the rent.
Can I add the suite after I move in?
Yes, but building it before closing allows you to take advantage of the borrowing power benefits described above.
Will my lender count the rent before I have a tenant?
Usually, yes. For a legal suite, lenders typically rely on an appraiser’s estimate of market rent. How much of it they count varies by lender, so speak with a mortgage broker early.
Can family live in the suite instead?
Yes. Many buyers use the suite for parents or adult children, and rent it out later.
Is rental income taxable?
Yes. Rental income is taxable, and you can deduct eligible expenses such as a share of utilities, insurance, maintenance and depreciation. Speak with your accountant.
Does the HST relief apply to the suite?
When the suite is part of your agreement of purchase and sale, it is included in the home’s total price, which is what the HST relief is based on. Our team can show you how it affects your numbers.
Will my property taxes go up?
Possibly a little. A finished suite can increase your home’s assessed value. The rent is usually far more than the increase.
Book a Visit
Talk through a suite with our team
Visit our model home, see which designs have a side entrance, and walk through the numbers for your situation. We’ll get back to you within one business day.
Model Home
Open Houses
Saturday and Sunday, 1:00pm to 4:00pm. Other times by appointment.
Call or Email
All figures on this page are illustrative estimates as of November 2026, not a mortgage approval or financial, tax or legal advice. Rent, rates, lender policies and costs vary. Suite price of $125,000 plus HST is illustrative and is subject to change. Speak with a mortgage professional and your accountant about your situation. E.&O.E.
