Most Ontario cities have recognized the need for more housing. Many municipalities now offer two-unit zoning where single-family (one-unit) housing used to exist. This creates an opportunity for some first-time homebuyers to add a secondary unit to a home that they purchase to assist with the monthly carrying costs of the homes.

We are seeing this in 1000+ sq. ft. bungalows where people live on the top floor and renovate/ rent the basement to offset monthly carrying costs and mortgage payments.

Family and/or friends have been pooling their resources to purchase a property together that they will all live in. An example of co-ownership is two different clients purchasing a 4-unit building together. Each client occupies a unit then they rent out the other two units. This fast-tracks their mortgage and builds equity.

Some people are lucky in that their family members have assisted them with a down payment or contribution towards their purchase. Positioning the money as an investment (instead of a donation) is attractive to those contributing. The two things that would entice family investors (or any investors in that case) would be an agreed-upon interest payment for the borrowed money, and/or a percentage of equity in the home related to their invested amount.

A second unit is a self-contained dwelling unit with a private kitchen, bathroom facilities and sleeping areas. It can be located in your house or on your property, above a laneway garage or in a coach house.

Adding a second unit is a great way to provide independent living for a family member or make a little extra money to help pay off the mortgage. But there are requirements you need to consider beforehand, so make sure to do your research.