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City of Toronto

Basement Second Unit Planner
Scarborough

Plan your legal basement apartment in Scarborough with real costs, stackable incentives, and rental ROI.

Standard Package

$77,000–$168,000

Max Cash Incentives

Up to $60,900

Rental Income

$1,800–$2,200/mo

Value Lift

13–20%

Choose Your Package

Budget

Basic legal compliance. No lowering, basic finishes, existing ceiling height.

$48,000–$77,000

Standard

Complete legal apartment. Full conversion with quality finishes.

$77,000–$168,000

Premium

High-end luxury suite. Premium finishes, smart home, maximum value.

$144,000–$240,000

Add-Ons & Upgrades

Backwater Valve

Prevents sewage backup into your basement. Required by most municipalities.

$2,000–$4,000

Rebate eligible

Sump Pump + Battery Backup

Primary sump pump with battery backup for power outages.

$1,000–$2,000

Rebate eligible

Energy-Efficient Egress Windows (x4)

Triple-pane, argon-filled egress windows with insulated wells.

$3,000–$6,000

Rebate eligible

Basement Wall Insulation (Spray Foam)

Closed-cell spray foam insulation for maximum energy efficiency.

$1,500–$3,500

Rebate eligible

Underpinning (if ceiling < 6'5")

Lower basement floor to achieve legal ceiling height. Major structural work.

$72,000–$144,000

Exterior Waterproofing

Full exterior excavation, membrane, weeping tile, and drainage.

$17,500–$38,500

Rebate eligible

HRV Ventilation System

Heat recovery ventilator for fresh air without energy loss.

$3,000–$6,000

Rebate eligible

Cost Breakdown

Standard Package$77,000–$168,000
Total Before Incentives$77,000–$168,000
Multigenerational Home Renovation Tax Credit (MHRTC)-$7,500
Ontario Secondary Suite Program-$40,000
Net Cost After Incentives$29,500–$120,500

Low-Interest Financing Available

Up to $125,000 in Toronto HELP low-interest financing (as low as 3%)

Return on Investment

Monthly Rental Income

$1,800–$2,200

per month

Payback Period

1.1–5.6 years

to recover investment

Annual ROI

17.9–89.5%

return on investment

Property Value Lift

13–20%

estimated increase

Why this is a smart investment: With monthly rental income of $1,800–$2,200 and a net cost after incentives of $29,500–$120,500, you can recover your investment in approximately 1.1–5.6 years. Plus, your property value increases by 13–20%, building long-term equity.

Available Incentives in Scarborough

Stack up to $60,900 in cash incentives + $125,000 in low-interest financing

Federal Programs

Multigenerational Home Renovation Tax Credit (MHRTC)

Up to $7,500

15% refundable tax credit on up to $50,000 of renovation costs for creating a secondary suite for a senior or disabled family member.

Eligibility

  • Canadian taxpayer
  • Creating a self-contained secondary unit
  • For a senior (65+) or disabled family member
  • Unit must have separate entrance, kitchen, bathroom
Learn more & apply

Canada Greener Homes Grant

Up to $5,000

Up to $5,000 for energy-efficient home improvements including insulation, windows, and ventilation.

Eligibility

  • Canadian homeowner
  • Home built before 2022
  • EnerGuide assessment completed
  • Qualifying energy upgrades
Learn more & apply

Provincial Programs

Ontario Secondary Suite Program

Up to $40,000

Up to $40,000 forgivable loan for creating a legal secondary suite. Forgiven after 10 years of maintaining the unit as affordable rental.

Eligibility

  • Ontario homeowner
  • Creating a new secondary suite or legalizing existing
  • Unit must be rented at or below average market rent
  • Must maintain as rental for 10 years
Learn more & apply

Municipal Programs — Scarborough

Toronto Basement Flooding Protection Subsidy

Up to $3,400

Up to $3,400 for basement flood protection including backwater valves, sump pumps, and waterproofing.

Eligibility

  • Property within City of Toronto
  • Residential property owner
  • Licensed contractor performs work
  • Apply before work begins
Learn more & apply

Toronto HELP (Home Energy Loan Program)

$125,000 @ low interest

Up to $125,000 in low-interest financing (as low as 3%) for home improvements including secondary suites. Repaid through property tax.

Eligibility

  • Property within City of Toronto
  • Residential property owner
  • Good standing on property taxes
  • Qualifying home improvements
Learn more & apply

Utility Rebates

Enbridge Home Efficiency Rebate

Up to $5,000

Up to $5,000 for insulation, windows, and HRV systems through Enbridge Gas.

Eligibility

  • Enbridge Gas customer
  • Home energy audit completed
  • Qualifying upgrades (insulation, windows, HRV)
Learn more & apply

Scarborough Design Requirements

City-specific building code and zoning requirements

RequirementScarborough Standard
Ceiling HeightMin 6'5" (1.95m) finished ceiling
Egress WindowsMin 3.8 sq ft opening per bedroom
Fire Separation1-hour fire separation, interconnected smoke/CO alarms, fire-rated doors
Parking1 additional space (City of Toronto rules)
Electrical100A sub-panel, separate meter recommended
PlumbingBackwater valve mandatory, sump pump if below sewer
HVACSeparate heating zone, HRV recommended
Permit Timeline4–8 weeks
Permit Cost$2,500–$5,000
ZoningSame as City of Toronto: as-of-right in most residential zones since 2024. Scarborough has many older bungalows ideal for conversion.

Ontario Building Code (OBC) Universal Standards

Ceiling Height

Minimum 6'5" (1.95m) clear finished ceiling height in habitable rooms

Egress Windows

Minimum 3.8 sq ft (0.35 m²) unobstructed opening in each bedroom and living area

Fire Separation

1-hour fire-resistance rating between units (floor/ceiling assembly)

Smoke Alarms

Interconnected smoke alarms on each level, CO alarms near sleeping areas

Separate Entrance

Separate entrance required (can be interior or exterior)

Kitchen

Sink, cooking appliance, refrigerator, and food preparation space required

Bathroom

Toilet, sink, and shower/tub required. GFCI protection within 1.5m of water

Ventilation

Mechanical ventilation per OBC 9.32 — HRV recommended for efficiency

Electrical

Minimum 100A sub-panel, separate circuits for kitchen, bath, and laundry

Plumbing

Separate shutoff valve, backwater valve where required by municipality

Sound

STC 50 minimum between units (STC 55+ recommended for comfort)

Accessibility

Barrier-free path of travel to unit entrance recommended (not always mandatory)

Frequently Asked Questions — Scarborough

How much does a basement apartment cost in Scarborough?

Scarborough basement apartments cost $48,000–$240,000. Costs are about 4% below downtown Toronto. Budget at $48,000, standard $76,800–$168,000, premium $144,000–$240,000.

What incentives are available in Scarborough?

Same as Toronto: Ontario Secondary Suite ($40,000), MHRTC ($7,500), Toronto Flooding Subsidy ($3,400), Enbridge ($5,000), Toronto HELP financing ($125,000). Total: $60,000+.

How much rent can I charge in Scarborough?

Legal basements in Scarborough rent for $1,800–$2,200/month. Areas near Scarborough Town Centre, UTSC, and waterfront command premium rents.

Why is Scarborough good for basement apartments?

Scarborough has many older detached bungalows and raised ranches with deep lots — ideal for basement conversion. Strong rental demand from Centennial College, UTSC, and immigrant families.

Does Scarborough follow Toronto building rules?

Yes. Scarborough is part of the City of Toronto and follows the same building code, permit, and zoning requirements.

Does DrySpace work in Scarborough?

Yes. DrySpace serves all of Scarborough including Agincourt, Malvern, Rouge, Bendale, and Highland Creek.

Ready to Build in Scarborough?

DrySpace handles everything — permits, construction, inspections, and all incentive applications. Book your free basement assessment today.

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