Guide · Basics

What Is an ADU? Accessory Dwelling Units in Ontario Explained

Short answer: an ADU is a self-contained second home on the same lot as a main house. Ontario calls it an additional residential unit and allows up to three units on most urban lots.

By Modular X Team5 min readUpdated October 2026

Short answer: An ADU (accessory dwelling unit) is a second, self-contained home on the same lot as a main house. In Ontario the legal term is additional residential unit, and the Planning Act lets most urban lots have up to three units, one of them in a detached building such as a garden or laneway suite.

Key takeaways

QuestionShort answerSource
What is an ADU?A self-contained second home on the same lot (kitchen, bath, sleeping area)Ontario — Add a second unit
Ontario termAdditional residential unit (ARU)Planning Act s. 16(3), s. 35.1
How many units?Up to three on eligible urban lots; one may be in an ancillary buildingPlanning Act
Permit needed?Yes, building permit plus electrical permitOntario — Add a second unit
Can it be modular?Yes; same permit and Building Code rulesOntario — Building a modular house

Types of ADU in Ontario

  • Basement or in-house suite — a second unit inside the main house.
  • Garden suite — a detached unit in the back yard. See garden suites.
  • Laneway suite — a detached unit on a lot that backs onto a public lane. See Toronto laneway suites.

What Ontario allows

The Planning Act (s. 16(3) and s. 35.1) stops municipalities from prohibiting up to three residential units on a serviced urban lot: for example a main house, a basement suite and a garden suite. Each city still sets zoning standards such as height, setbacks, lot coverage and tree protection, so the size and placement of an ADU vary by city. Our GTA garden suite rules comparison sets the main cities side by side.

How to add an ADU

  1. Check zoning and lot fit (lane access, setbacks, trees, servicing). Start with the free feasibility check.
  2. Prepare construction drawings that meet the Ontario Building Code.
  3. Apply for a building permit and an electrical permit.
  4. Build, site-built or factory-built, with municipal inspections at each stage.

More in our ADUs in Ontario overview and the full guides hub.

FAQs

An ADU (accessory dwelling unit) is a self-contained home on the same lot as a main house, with its own kitchen, bathroom and sleeping area. In Ontario the legal term is additional residential unit (ARU). Common types are basement suites, garden suites and laneway suites.

Sources

Disclaimer: Figures cited are market estimates provided for information only and are not a quote. Municipal rules, fees, and programs change — always verify current requirements with your local authority. Modular X provides exact pricing only after a site-specific feasibility review.