A laneway suite is a fully self-contained secondary dwelling built at the rear of your property, accessed from a public laneway. Under current City of Toronto zoning, most residential properties abutting a laneway are eligible to add one. Garden suites — the backyard equivalent for properties without laneway access — are permitted in most Ontario municipalities.
Both are classified as Additional Residential Units (ARUs) under the Ontario Planning Act and are eligible for mortgage and rental income consideration.