A secondary suite—also known as an in-law suite, accessory dwelling unit (ADU), or basement apartment—is a self-contained living space within an existing home that can be rented out to a tenant. These suites typically have their own entrance, kitchen, bathroom, and living area, while sometimes sharing common spaces like laundry or storage. While many secondary suites are built in basements, they can also be additions to the main structure.
Why Build a Secondary Suite?
With rental demand at an all-time high in Ottawa, secondary suites provide an affordable housing solution while allowing homeowners to generate rental income. Vacancy rates for one-bedroom apartments in Ottawa are hovering at all time lows, making it difficult for renters to find suitable housing.
By converting unused space into a legal rental unit, homeowners can help address this housing shortage while benefiting financially. Additionally, Ontario’s rising property values have made homeownership increasingly challenging for first-time buyers.
Secondary suites offer a practical way to offset mortgage payments, making it easier to afford property in competitive neighborhoods. The Canadian Mortgage and Housing Corporation (CMHC) even allows homeowners to use 100% of rental income from legal secondary suites to qualify for a mortgage, making this an even more attractive investment.
The Benefits of a Secondary Suite
Adding a secondary suite not only creates additional housing but also provides homeowners with a steady source of income. Some key benefits include:
✔ Helping cover mortgage payments
✔ Increasing property value and resale potential
✔ Providing affordable rental options for students, seniors, and families
✔ Offering financial flexibility for home renovations or unexpected expenses
✔ Enabling multigenerational living arrangements
With government-backed programs and financing options available, now is the perfect time to explore adding a secondary suite to your home.