Buying a Multigenerational Home in Markham: Layouts, Credits and Financing

The short answer

A multigenerational home in Markham is a house that works for two or more generations of one family under the same roof. Buyers usually ask about layout first, then about money. The money side has two federal pieces: the Multigenerational Home Renovation Tax Credit (MHRTC) from the Canada Revenue Agency (CRA) and CMHC’s insured refinancing for adding a suite. Each has fine print that affects which house is the right one to buy.

This post is about the purchase. For the rules on registering a second suite, see our post on legal basement suites versus finished basements. For staying in an existing home, see stay or sell: aging in place in Ontario.

What do multigenerational buyers look for in a house?

These are layout features worth putting on a checklist. They come from how households use space rather than from any rule, so weigh them against your own routines.

• A bedroom and full bathroom on the main floor, so nobody needs stairs for daily use
• A second kitchen or a space where one could be added, with a believable route for plumbing and ventilation
• A separate entrance, ideally at grade, with a short route from the driveway
• Enough parking for the vehicles the household actually owns
• Walk-out or above-grade basement windows, which change how a lower level feels
• Sound separation between floors and a laundry location that suits more than one household
• A floor plan where the private spaces and the shared spaces are clearly different

In Markham these features show up in different forms. Larger detached homes often offer more room to separate living areas. Some townhouse and semi-detached layouts can suit a smaller extended household. Our Cornell guide describes a neighbourhood of freehold townhomes, semis and detached homes, most with rear lane garages. Read the guide for any area you are considering. Ask about the exact floor plan rather than assuming.

Does the federal tax credit apply when you buy?

The MHRTC is a refundable credit. The CRA says it is 14.5% of your costs, up to a maximum of $7,250, for each claim. You can claim up to $50,000 in qualifying expenditures for each qualifying renovation that is completed.

The detail that matters to buyers is the definition of the unit. The CRA says a secondary unit is a self-contained housing unit with a private entrance, kitchen, bathroom and sleeping area. It must also be newly constructed or created from existing living space that did not already meet local requirements for a secondary dwelling unit. It must meet local permits, codes and by-laws. So the credit is about creating a unit through a renovation. The CRA pages we read do not say how the credit treats a purchased home that already has an approved suite. They do not list the purchase price of a home among eligible expenses.

Question	What the CRA says
Who is the qualifying individual?	Someone 65 or older at the end of the renovation period tax year. The other route is someone aged 18 to 64 who is eligible for the disability tax credit
Who is a qualifying relation?	An adult who is a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece or nephew of the qualifying individual or their cohabiting partner
How many renovations can be claimed?	Only one renovation can be claimed for a qualifying individual during their lifetime
When is it claimed?	In the tax year the qualifying renovation is completed
What must happen after the work?	The home must be ordinarily inhabited (or reasonably expected to be) by the qualifying individual together with a qualifying relation within 12 months after the renovation period ends

The CRA also lists exclusions, including financing costs for the renovation, household appliances and the value of your own labour. Whether you qualify depends on your own household and the work you plan, so confirm it with an accountant before you rely on the credit in a purchase budget.

What does CMHC Refinance change for a buyer who wants to add a suite?

Many buyers choose a house that could take a suite later, rather than one that has it today. In that case the question is how to pay for the work.

CMHC says CMHC Refinance allows homeowners to refinance their existing properties and create secondary suites. The Department of Finance says the measure applies to insured mortgage applications that lenders submit on or after January 15, 2025. The main terms on the CMHC page are in the table below.

Term	CMHC Refinance
Borrower	Must already own the home
Occupancy	At least one unit occupied by the borrower or rent free by a person related by marriage, common-law partnership or a legal parent-child relationship
Loan to value	Up to 90%, including the value added by the suite
Property value	The maximum lending value or as-improved value must be below $2,000,000
Units	Up to 4 units, including the existing units
Amortization	Maximum of 30 years
Suite	Self-contained and in compliance with applicable bylaws and regulations
Rental use	Must not be rented for any period of less than 90 consecutive days

Two buyer points follow. First, the borrower must already own the property, so this is a plan for after closing and not a way to finance the purchase itself. Second, CMHC lists a building permit among the required documents. A house whose layout makes a permitted suite impractical is a poor fit for this route, however large it is.

CMHC says its information is subject to change. Lenders set their own terms. Ask a mortgage professional what a given lender will do before you write an offer on a house that depends on it.

How many units can a Markham lot have?

The City of Markham says that, because of the More Homes Built Faster Act (Bill 23), all urban residential parcels are now permitted to have up to three units per lot. The same page says all two-unit houses must be registered with the City and that a building permit is required for all new construction.

Treat that as the starting point and not the answer for a specific address. The Markham page we read does not cover garden suites or coach houses, so we have left them out. Ask the City about the exact property before you build a plan around extra units.

Does a multigenerational purchase affect how you buy and sell?

It can change the order of events. A household that needs the new home to be ready on a particular date has less room to wait. Our post on selling first or buying first explains both paths. If a relative is selling a home to join the household, our post on selling a parent’s house in Markham covers that side.

The cost of the step itself follows the same rules as any move up. Our post on the cost of stepping from a townhouse to a detached house walks through land transfer tax and the minimum down payment, which apply to a multigenerational purchase too.

If the house is older, plan for more inspection work, because wiring, plumbing and heating all have to carry a larger household. Our post on home inspections for Ontario buyers explains what an inspection covers.

What to do before you start looking

1. Write down who will live in the home, who needs a main-floor bedroom and who needs a separate entrance.
2. Decide whether you want a suite on day one or a house that could take one later.
3. Ask an accountant whether the MHRTC could apply to your household and your planned work.
4. Ask a mortgage professional how CMHC Refinance or another financing route would work for a future suite.
5. For any house with a suite, ask for the registration and permit paperwork before you make an offer.
6. Ask the City of Markham what the exact property allows.

Our upsizing in Markham page explains how we sequence a sale and a purchase. Our buyer services page covers the purchase side. If you would like to compare layouts and rules for the homes you are watching, contact us.