Intergenerational home: What you need to know

What is an intergenerational home?

An intergenerational home—also known as a multigenerational home or dual-generation home—is a single-family residence that includes an independent living area. This type of property allows parents, adult children, and grandparents to live together while maintaining privacy and autonomy. 

Good to know: The main unit and the secondary suite must each have a separate entrance (private access). 

An intergenerational dwelling can take different forms: 

• A side addition to the main house 

• A new upper floor 

• Conversion of an existing space into an apartment, often above the garage or in the basement 

What are the benefits of multigenerational living?

Beyond lowering overall costs (home purchase, mortgage, housing expenses), this type of cohabitation offers many tangible benefits: 

• Strengthens family relationships 

• Reduces isolation 

• Provides a sense of security for aging parents 

• Encourages mutual support and service sharing 

• Supports a family member with reduced mobility through an adapted, accessible home design 

How to ensure successful cohabitation

To prevent family conflicts, it’s important to agree on several key points before you begin your project: 

• Number of private and common areas 

• Division of household chores 

• Shared or separate meals 

• Noise and schedule management 

• Privacy 

• What happens if someone wants to sell or move out 

In short, open communication will be your greatest ally in achieving a harmonious extended family life. 

How to convert your home into an intergenerational residence

Here are the main steps to create an independent unit within your home. 

1. Check municipal regulations

Rules and standards for intergenerational residences vary from one municipality to another. Lot size, unit placement, shared areas, or heating systems—be sure to do your research. Confirm that your project complies with the local building code and zoning requirements. You’ll also need a building or conversion permit for your intergenerational home. 

Good to know: Some municipalities do not allow this type of housing, so check with your local authorities first. 

2. Set a realistic budget 

The cost of transforming a single-family house into a multigenerational home varies based on project scope. Material prices can also fluctuate depending on the season and region. Request several quotes to establish a realistic budget based on your financial situation and long-term goals. 

Converting a basement is often less expensive than adding a floor or an extension, since the structure is already in place. 

Typical expenses include adding a new kitchen and bathroom. You may also need to: 

• Improve soundproofing for privacy 

• Make the space safer and more accessible 

• Comply with zoning and safety codes 

Pro tip: Consult multiple home improvement professionals to get accurate quotes for your construction or conversion project. The choice of building materials can make a major difference in cost and comfort.  

3. Decide who will own the multigenerational home 

Will you share the construction and mortgage costs with your family or manage them yourself? Some homeowners prefer to remain sole owners and rent the secondary suite to relatives, while others share expenses and ownership. Choose the arrangement that works best for your family. 

4. Create detailed plans and specifications 

Follow professional advice to select house plans that suit a multigenerational layout. 

If you’re modifying an existing structure, work with an architect, structural engineer, or architectural technologist. They can help you plan an addition, second-storey extension, or basement conversion. 

If you’re building a new intergenerational home, many home design companies offer turnkey plans tailored to this type of project. You can also work with a custom design specialist who will develop a plan that fits your family’s exact needs. 

Once your plans are ready, you can begin renovations or hire a qualified contractor. CAA-Quebec’s Residential Advisory Services can help you find a reliable professional through its network of Approved Residential Suppliers. 

Available grants, tax credits, and financial assistance for intergenerational homes

There are no specific programs dedicated solely to multigenerational housing. However, the federal government offers tax credits for home renovations if you add a suite for a parent aged 65 or older, or for a family member with a disability. 

Learn more about the available home renovation grants and tax credits for building or modifying a residence. 

Good to know: Living in an intergenerational home can affect certain financial benefits, such as the single-person tax credit or caregiver tax credits. Consult a financial advisor before starting your project. 

How does a multigenerational home mortgage work?

A multigenerational home mortgage functions just like a standard single-family home mortgage. Whether you buy alone or with a relative, interest rates and eligibility criteria remain the same. Approval will depend on your credit history, income, and the property’s value. 

Good to know: Legally, there’s no distinction between a single-family and multigenerational home. However, if several owners are involved, you’ll need to sign a co-ownership agreement with a notary to outline everyone’s rights and responsibilities. 

How to insure an intergenerational home

Home insurance coverage for multigenerational properties is typically assessed case by case. To qualify as an intergenerational home in the eyes of insurers, your property must: 

• Be a single-family dwelling occupied by related family members 

• Share one civic address 

• Have two separate entrances for each living unit 

• Have one tax and hydro account 

Each unit must include its own kitchen, bathroom, and laundry area. 

Evaluate the value of your belongings and speak with your insurance broker or agent to ensure full protection—especially regarding liability coverage for all family members. 

How to manage shared and ongoing expenses

When living separately, each household pays its own bills. In a shared intergenerational residence, you can split expenses—saving money on utility bills, maintenance, and even senior housing alternatives. 

To maintain harmony, define how you’ll divide ongoing expenses from the start: repairs, maintenance, electricity, internet, property taxes, and school taxes should all be discussed and documented. 

These practical tips will help you successfully plan and enjoy intergenerational living with your family. 

Special thanks to Habitation Plani-Conseil for their contribution to this article.