There's a widespread assumption that Toronto legalised sixplexes citywide. It didn't — and if you're evaluating a property on that assumption, you may be valuing it wrong.
Here's the actual state of things.
Four Units: Almost Everywhere
Since May 2023, Toronto has permitted multiplexes of up to four units as-of-right on virtually every residential lot in the city. No rezoning. Duplex, triplex, fourplex — if your lot is residential, the permission is there.
This is the change that opened the door, and it's the one our entire approach is built around. As-of-right means the zoning already allows what you want to build, so you skip the rezoning process entirely.
Six Units: Only in Some Places
Sixplexes are a different story. As of June 2025, six units are permitted as-of-right across the Toronto and East York district and in Ward 23 (Scarborough North). Other wards have an opt-in path, but they aren't automatically included.
So whether your lot supports six units is a question about where it is, not just how big it is. Two properties of identical size and shape, a few kilometres apart, can have materially different development potential — and that difference flows directly into what the land is worth.
This is the first thing we check on any site. Not the price, not the dimensions. The permission.
Why the Fifth Unit Is the Important One
Most of the conversation about this treats it as four-versus-six. In practice, the more consequential threshold sits between them.
CMHC MLI Select requires at least five self-contained rental units. A fourplex doesn't qualify on its own. That single fact changes the financing available to a project more than the marginal rent from two extra units does — MLI Select can reach up to 95% loan-to-value and, at the top affordability tier, amortizations as long as 50 years. We've written about how that program actually works.
So the ladder looks like this:
Four units — permitted nearly everywhere, qualifies for the full HST rebate on purpose-built rental, development charges exempt. Does not reach MLI Select on its own.
Five units — clears the MLI Select threshold. Still inside the development charge exemption. This is where FAMILY 1 sits, and it isn't a coincidence.
Six units — the top of the development charge exemption, and the most units you can build before that waiver stops applying. Only available as-of-right in the districts named above.
The Incentives Are Aligned With Small Buildings
It's worth noting how neatly the policy stack fits this range. The HST rebate starts at four units. The development charge exemption covers up to six. MLI Select opens at five. There is a genuine sweet spot between five and six units where every available incentive applies at once.
That's not an accident of policy — it's the result of several levels of government all deciding, at roughly the same time, that this is the housing type Toronto stopped building and needs back.
What This Means If You Own a Lot
Before you think about design, you need three answers: how many units your ward permits as-of-right, whether the envelope actually fits them without a variance, and whether servicing and hydro can carry the increase. Those three together determine whether you're looking at a four-unit project or a six-unit one, and the gap between those two outcomes is substantial.
We do this assessment before we acquire anything, and we'd do it on your property too. Get in touch if you want to know what your lot supports.
Our first project, FAMILY 1, is five family-sized homes under construction now. NEIGHBOUR 1 is seven. Join the waitlist to follow along.