Types of Housing in Canada 

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The word home has a distinct meaning for everyone. Canada is home to a diverse range of property types that have catered to the unique needs of individuals and families for decades. From detached houses to downtown condos, the most popular The word home has a distinct meaning for everyone. Canada offers a wide range of housing options, each designed to meet different lifestyles, budgets, and long-term goals. From urban high-rises to suburban family homes and rural properties, the variety of home types across the country reflects the diverse needs of individuals and families at every stage of life.

Buying a home is not just about choosing a place to live. The type of property you purchase can affect your down payment requirements, mortgage qualification, property taxes, maintenance costs, and long-term equity growth. From detached houses to high-rise condos, each type of home comes with different financial considerations that matter just as much as layout or location.

Let’s review the most common residential property types in Canada and discuss how each affects their mortgage financing options. of housing are from Ontario to British Columbia and everywhere in between.

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Key Takeaways

• Canada is home to several popular property types, including detached, semi-detached, condos, and townhomes.
• Homeowners choose their homes based on a combination of factors, including location, space, renovation potential, and aesthetics.
• The type of home you choose can influence your mortgage approval, ongoing costs, and long-term financial flexibility.

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Types of Homes in Canada

Before committing to a home purchase, it is important to understand the structural and ownership differences between Canada’s most common housing types. While some homes offer more privacy and space, others provide lower maintenance and shared costs. Here is how each property type works and what makes them distinct.

Detached

A detached home stands on its own lot and does not share any walls with neighbouring properties. Because of the added privacy, larger lot size, and greater square footage, detached homes are typically the most expensive housing type in many Canadian markets. Higher property values also translate into higher property taxes, and homeowners are fully responsible for the costs associated with maintaining their homes and the surrounding property. 

For many buyers, full ownership of both the structure and the land represents the ultimate form of homeownership. Detached homes often include front and back yards, garages, and additional living space, making them a popular choice for families or buyers looking for long-term price appreciation and room to grow.

Semi-Detached

A semi-detached home is one half of a pair of homes built side by side, connected by a single shared wall. These types of homes function similarly to detached homes. Each side has a different owner, entrance, utilities, and outdoor space, even though they are connected.  

In many Canadian cities, semi-detached homes are a practical middle ground between owning a detached home and a townhome. They typically offer more interior space and yard area, while remaining more affordable than fully detached properties in the same neighbourhood. Their affordability makes semi-detached properties a popular option for first-time buyers and growing families who want added privacy without the higher price tag of a standalone detached home.

Townhouses

Townhouses are typically multi-level homes built in a continuous row, with each unit connected to its neighbours by shared walls. Unlike detached or semi-detached homes, townhomes maximize land use by building upward rather than outward, which helps keep purchase prices more accessible in many urban and suburban markets.

Traditional townhomes often feature 2 or 3 floors, small private yards or terraces, and, sometimes, attached garages. They offer a balance between space and affordability, making them attractive to buyers who want more room than a condo without the full cost of a detached property.

Condos

A condominium is a privately owned unit within a larger residential building or complex. Condo owners hold title to their individual unit, while common areas such as hallways, elevators, gyms, and exterior elements are owned collectively and managed by a condo corporation. While owners have full ownership of their interior space, the building’s common areas and exterior are managed by a condo corporation.

Condo living is often found in urban environments, where high-rise and mid-rise buildings provide convenient access to transit, employment, and amenities. Monthly condo fees contribute to building maintenance, repairs, insurance, and shared services. Condos are often one of the more accessible entry points into homeownership in major Canadian cities.

Buyers should carefully review a building’s financial health, reserve fund, and management before purchasing. Participation on a condo board can also give owners greater involvement in building decisions.

Condo Townhomes

Condo townhomes combine the layout of a townhouse with the ownership structure of a condominium. While the unit may resemble a traditional townhome from the outside, the property is governed by a condo corporation that manages and owns exterior maintenance and shared elements. Owners pay monthly condo fees similar to those in apartment-style condominiums. These fees cover building maintenance and shared amenities, as with a typical condo. 

Stacked townhomes are a variation in which units are stacked vertically rather than stretched side by side. In this layout, one unit may occupy the lower levels while another sits above it, each with a separate entrance.

Bungalows

A bungalow is typically a single-storey detached home, sometimes with a finished or unfinished basement. All primary living spaces are located on one main level, which makes this style attractive to buyers seeking accessibility. 

Bungalows may sit on larger lots and can provide expansion opportunities through basement renovations or additions. Although less common in newer large-scale developments, they remain a recognizable and sought-after housing type across Canada.

Split-Level

Split-level homes are unique property types that feature multiple floors connected by short staircases. Rather than full floors stacked vertically, the layout divides living areas into distinct zones across multiple partial levels. 

This design maximizes usable space, often separating living, dining, and bedroom areas while maintaining a relatively compact footprint. Split-level homes became popular in mid-to-late 20th-century suburban developments and can still be found throughout many Canadian communities.

Multiplexes – Duplex, Triplex, Fourplex

A duplex contains two separate residential units within a single building, while triplexes and fourplexes contain three and four units, respectively. These properties are commonly found in urban centres and older neighbourhoods and play a significant role in Canada’s rental housing supply. These multiplex properties are increasingly being promoted as the missing middle housing solution to increase density in single-family neighbourhoods and alleviate Canada’s housing shortage. 

Multiplex properties can serve several purposes. Some buyers choose to live in one unit while renting out the remaining units, benefiting from owner-occupied plus rental mortgage pricing and lending, helping offset mortgage payments and operating costs. Others purchase the entire building purely as an investment property to generate long-term rental income and build equity. Plex properties are also frequently used for multi-generational living, allowing extended family members to share the same property while maintaining independent living spaces.

Laneway House

A laneway house is a small, self-contained residential unit built on the same lot as an existing home, typically facing a back lane or alley. These types of homes are also known as garden suites or accessory dwelling units (ADU) in some municipalities. A laneway house is separate from the main home but remains part of the same property title.

Laneway houses are most commonly found in larger Canadian cities where zoning has evolved to support additional housing supply. They are usually compact in size and include their own kitchen, bathroom, and living space. Homeowners may use a laneway house to accommodate extended family, create a rental unit, or add long-term value to their property.

How Home Type Can Impact Mortgage Approval

The type of home you choose directly affects how lenders evaluate your application. From purchase price and property taxes to condo fees and potential rental income, each housing type changes how your debt service ratios are calculated and how much you can qualify for. Understanding these differences in advance can help you set a realistic budget and avoid surprises during the mortgage process.

Detached, Bungalows, and Split-Level Homes

These types of homes are often the most expensive property type in a given area. Higher purchase prices usually mean larger down payments and higher income requirements to qualify. Since property taxes are based on assessed value, they can also increase your monthly housing costs, which directly affects your gross debt service ratio.

Semi-Detached and Townhomes

These homes often have purchase prices lower than detached properties, which may reduce the income required to qualify. There are typically additional carrying costs for townhouse ownership. The monthly costs could range from exterior maintenance fees for row homes to condo fees if part of a larger condominium corporation. 

If the townhome is part of a condo corporation, monthly condo fees must be included in your debt service calculations. Lenders typically factor 50% of condo fees into your qualification ratios, which can reduce your maximum borrowing power. 

Condominiums 

These units typically come with additional underwriting considerations. Beyond your income and credit profile, lenders may review the financial health of the condo corporation. This includes reserve fund studies, special assessments, and litigation risks, typically outlined in the Status/Estoppel Certificate. 

Monthly condo fees also impact affordability. Since these fees are included in debt service calculations, higher fees can limit how much mortgage you qualify for. In some cases, certain buildings may not meet a lender’s approval criteria. Each $100 in monthly condo fees reduces your mortgage qualifying amount by around $10K.

Multiplex Properties

These multiplex properties can generate rental income if you purchase the entire building. Lenders may allow you to use a portion of projected rental income to help qualify. However, different lenders apply different rental income, and some are more conservative than others. These properties may also require a larger down payment, depending on the number of units available and whether the property is owner-occupied. Mortgage insurance rules can vary for multiplexes.​​ 

Lenders typically allow multiplexes with up to 5 units to be purchased on the residential side. As an owner-occupied rental with one unit occupied by the buyer, it can be financed as a high-ratio mortgage with CMHC, Sagen or Canada Guaranty. Lenders will typically consider 50% of the lower of the current market rent as per the appraisal report or the active leases for the units already rented.

Frequently Asked Questions (FAQ) About Residential Property Types in Canada

Final Thoughts

Choosing the right home goes far beyond square footage or curb appeal. Every property type comes with different ownership responsibilities, monthly costs, and mortgage qualification implications. The right home is the one that fits your lifestyle, budget, finances and long-term mortgage strategy.

If you are comparing home types or preparing to buy, connect with nesto mortgage experts to review your numbers, explore lender options, and build a financing plan tailored to your unique situation.

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Why Choose nesto

At nesto, our commission-free mortgage experts, certified in multiple provinces, provide exceptional advice and service that exceeds industry standards. Our mortgage experts are salaried employees who provide impartial guidance on mortgage options tailored to your needs and are evaluated based on client satisfaction and the quality of their advice. nesto aims to transform the mortgage industry by providing honest advice and competitive rates through a 100% digital, transparent, and seamless process.

nesto is on a mission to offer a positive, empowering and transparent property financing experience – simplified from start to finish.

Contact our licensed and knowledgeable mortgage experts to find your best mortgage rate in Canada.

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