Where Toronto allows them.
- Fourplexes: up to four units on any residential lot in the city, as-of-right since May 2023.
- Fiveplexes and sixplexes: in the Toronto and East York wards 4, 9, 10, 11, 12, 13, 14 and 19, and in Ward 23 Scarborough North (2025).
- Built form: since 2025, multiplexes get 45% lot coverage and no floor space index cap where the zone allowed less. Height, setbacks and building depth still apply.
- Parking: no minimum for most homes since 2022.
- Garden and laneway suites: can often be added on the same lot.
Development charges.
Toronto doesn’t charge its development charges or parkland fees on multiplexes of up to six units. Fourplexes were exempted first, and council extended the exemption to five- and six-unit buildings in 2025. Some other charges may still apply, so we confirm them for each project.
Building Code basics.
Most multiplexes are designed under Part 9 of the Ontario Building Code: up to three storeys and a 600 m² footprint. Every unit needs fire separations, and some layouts need sprinklers or extra exits. These choices change the plan and the budget, so we settle them at the concept stage.
What it costs.
We price multiplex construction at $285 to $375 per square foot of above-grade floor area, including stairs, walls and common areas (about 12% on top of the units). A basement apartment adds 75% of that rate for its floor area. Typical all-in budgets, including design, permits, contingency, demolition and services, before land and HST:
| Building | Above grade | All-in budget |
|---|---|---|
| Fourplex, 4 × 850 sq ft units | 3,800 sq ft | $1.27M–$1.79M |
| Sixplex, 6 × 850 sq ft units | 5,700 sq ft | $1.88M–$2.63M |
The numbers: a 6% cap rate.
Every budget we put in front of an investor is set to clear a 6% cap rate on all-in cost: net operating income divided by the lot, construction, design, permits, fees, financing and contingency.
On our investor calculator, a sixplex with $3,300 average rents, 850 sq ft units, construction at $300 per square foot and a $900,000 lot shows about 6.9%. The same inputs for a fourplex show about 6.0%, just under the line, which is why lot price and unit count matter so much.
Calculator assumptions: 12% added for common areas, design, permits and fees at 8% and financing and contingency at 5% of construction, 3% vacancy, operating costs at 15% of rent, all before HST. Rents and costs are estimates; the return itself can’t be guaranteed.
The timeline.
| Stage | Typical time |
|---|---|
| Lot test and Lot Check | 1 to 4 weeks |
| Design and pricing | 3 to 5 months |
| Building permit | 2 to 4 months |
| Construction | About 11 to 14 months |
Start to finish, plan on about 16 to 23 months. A variance adds three to six months.
Financing and incentives.
- CMHC MLI Select can offer better financing terms for rental buildings of five units or more that meet affordability, energy or accessibility targets.
- GST/HST rental rebates can apply to new purpose-built rental buildings with at least four units, if nearly all units are rented long-term.
- Ontario’s 2026 HST relief includes qualifying new rental properties; see our HST relief guide.
Each program has its own rules and deadlines. Check eligibility with your accountant and lender before you count on them.
General information, current to November 4, 2026. Rules and programs change; check the details for your property before you rely on them.