Intergenerational homes: A practical guide for a successful project

What’s an intergenerational home?

An intergenerational home, also known as a multigenerational or bigenerational home, is a single-family home in which an independent dwelling has been created. This configuration allows several generations of the same family—parents, children, and/or grandparents—to live together while preserving their privacy. Good to know: Even if both dwellings (one main and one secondary) have the same address and receive a single tax bill, they must have two separate entrances (private access).

Intergenerational homes come in many forms:

• An addition on the side of a house
• An additional floor
• An existing space that’s been converted into an apartment, often over the garage or in the basement

What are the benefits of a multigenerational home?

Beyond the economic considerations—home ownership, mortgage and housing cost savings, and cost sharing—intergenerational cohabitation has several people-centred benefits:

• Strengthens family ties
• Prevents isolation
• Provides a sense of security for aging parents
• Encourages sharing and mutual support

What are the criteria for successful intergenerational cohabitation?

To avoid family conflicts, you’ll have to agree on a number of things before even starting your project:

• Number of private rooms and common areas
• How to divide up chores
• Separate and/or shared meals
• Noise management
• Privacy
• What to do if someone wants to sell or move out

Basically, good communication is the best way to maintain harmony when living with your extended family.

What are the steps to convert your home to an intergenerational home?

1 – Check municipal regulations

Regulations and standards regarding intergenerational homes may differ from city to city, including the size and location of the dwelling, which rooms are shared, or the heating system. It’s important to be well informed. Remember to get a permit to convert to or build an intergenerational home.

Good to know: Make sure you get all the information you need before considering this kind of project, because some municipalities prohibit this type of housing.

2 – Draw up a budget

The costs of converting a single-family home to an intergenerational residence vary depending on the project’s complexity. As a general rule, converting a basement into a separate dwelling costs less than building an addition or another floor, because the basic structures are already in place (walls, floors, etc.). Expenses generally include renovations to add an additional kitchen and bathroom, as well as the adjustments required to comply with local safety, accessibility, and zoning standards. In some cases, improved sound insulation may also be necessary to preserve occupant privacy. We recommend that you consult several building professionals to get accurate estimates that are tailored to the scope of your planned renovation work.

3 – Determine who will own the intergenerational home

Will the down payment and construction costs be shared between your family members or not? Some people prefer to own the entire home and rent the dwelling to their loved ones. Others choose to share ownership and the mortgage. It’s up to you!

4 – Develop plans and specifications

To modify an existing structure (building an addition, adding a floor, or converting an existing space), hire an architect, structural expert, or architectural technologist.

For new construction, a number of architecture and design companies offer plans. You could also work with a specialist to design a plan that meets your specific needs.

Once you have a plan, you can start renovations yourself or find a contractor to do the work. CAA-Quebec’s Residential Advisory Services can help you find a reliable company within its Approved Residential Supplier network and can even help you compare quotes as needed.

What grants, tax credits, and financial assistance are available for intergenerational homes?

There is currently no specific government grant or assistance for building a multigenerational home. The federal government does offer a tax credit for families who want to add a second dwelling to their home to live with their parents age 65 and over, or with a loved one who has a disability. Learn more about the various tax credits and subsidies for renovating or building a home.

Good to know: Sharing an intergenerational home could impact whether you qualify for public financial support (e.g., additional amount for a person living alone or tax credits as a caregiver), so it’s also important to talk to a financial advisor before you get started.

Is the mortgage for an intergenerational home different from a mortgage for a single-family home?

Nope! Whether you’re buying a home by yourself or with someone else makes no difference to the interest rates or criteria for obtaining a mortgage. Getting approved for a loan will depend on your credit history, repayment capacity, and property value.

Good to know: From a legal perspective, there’s no distinction between a single-family home and a multigenerational home, unless parents and children become co-owners. In that case, a notarized document (undivided co-ownership contract) must specify the rights and obligations of the co-owners.

How does home insurance work for an intergenerational home?

Insurance coverage for multigenerational homes is generally assessed on a case-by-case basis. To be considered an intergenerational home by an insurer, your home must meet several criteria, such as the following:

• Be a single-family home inhabited by members of the same family
• Share the same street address
• Have a separate entrance for each dwelling
• Receive a single tax and electricity bill

Each dwelling must also have its own dedicated amenities: kitchen, bathroom, washer/dryer hook-ups, etc.

In short, you must clearly establish your insurance needs and assess your property value. Talk to your insurance agent or broker about your situation to make sure all members of your extended family are properly insured, especially by your civil liability coverage.

How should you share current and future expenses?

When living separately, each person is usually responsible for their own expenses. An intergenerational home allows residents to share costs, saving them money, especially on retirement home expenses. To foster good ties, decide from the start how future expenses will be shared: repairs, maintenance, electricity, Internet, municipal and school taxes, etc.

With thanks to: Habitation Plani-Conseil