When Emma and Marc, a young couple in Guelph, started shopping for their first home, the numbers were discouraging. Owning a detached house with a yard felt impossible. Renting seemed like the only option—until they discovered house hacking in Ontario.
They purchased a $750,000 home with a basement suite, spent $20,000 to legalise it, and now rent the unit for $2,000/month. Their $3,800 mortgage suddenly dropped to under $1,800 out of pocket. That’s less than renting a one-bedroom condo in the same city, while still building equity in a property they own.
This story isn’t unique. Across Ontario in 2025, more buyers are turning to house hacking as a way to make homeownership affordable and start building wealth sooner.
Wondering what types of properties are available in Guelph or the Tri-Cities? Find out in our featured listings.
What Is House Hacking?
House hacking is a real estate investing strategy where you buy a property, live in part of it, and rent out the rest.
Your tenants’ rent helps cover your mortgage payments, utilities, and property taxes, while you build equity and enjoy the long-term benefits of ownership.
In markets like Guelph, Kitchener-Waterloo, and Cambridge, where affordability is tight, house hacking has quickly become one of the most practical ways to buy a home in 2025.
The Most Popular House Hacking Strategies in Ontario
There are many ways to house hack, depending on your budget, lifestyle, and the type of property you buy. Here are the top four strategies we’re seeing across Ontario:
1. Live Upstairs, Rent Out the Basement
The classic approach. Buy a detached home with a legal basement apartment—separate entrance, kitchen, and bathroom preferred.
In Guelph, basement suites rent for $1,500–$2,200/month, which can cut your mortgage nearly in half.
💡 Pro Tip: Thanks to Ontario’s Bill 23, most homes are now zoned for up to three units. That means creating a legal accessory apartment is easier than ever.
2. Live in the Basement, Rent Out the Main Floor
This twist is especially popular with first-time buyers. By living in the basement suite and renting out the larger main floor, you can bring in $2,500–$3,000/month—sometimes enough to cover your entire mortgage.
Once your income grows, you can flip the arrangement: move upstairs and rent out the basement. It’s like a built-in upgrade path.
Are you starting to get some ideas for your future? Here are even more paths to consider:
- Benefits of Buying a Student Rental
- What’s the Fastest Path From Broke Student to Homeowner?
- A Complete Guide to Real Estate Investing in Guelph
3. Rent by the Room
This strategy works especially well in university towns like Guelph and Waterloo. Buy a 4–5 bedroom home, live in one room, and rent out the others to students or young professionals.
Example: three tenants at $1,000/month each = $3,000 toward your mortgage.
The bonus? If you live in the home too, your renters are considered housemates, not tenants under the Ontario Landlord & Tenant Board. That means you don’t need to go through a lengthy eviction process if there are problems—making it much less risky for new investors.
4. Add a Backyard ADU
Ontario’s updated housing rules allow most properties to have up to three units per lot, opening the door to Accessory Dwelling Units (ADUs) like garden suites, laneway houses, or tiny homes.
In cities like Guelph, ADUs typically rent for $2,000–$3,000/month, and they add major resale value. Buyers actively look for properties with legal ADUs, and they’re willing to pay a premium for them.
Why House Hacking Is Taking Off in Ontario
With high interest rates and rising home prices, many buyers are looking for creative ways to enter the market. House hacking Ontario homes offers three huge advantages:
- Affordable homeownership: Reduce your monthly living costs—sometimes by thousands.
- Build equity faster: Instead of renting, you’re paying down a mortgage on an appreciating asset.
- Flexibility: Use the income to get started now, and adapt the property later as your needs change.
For many families and first-time buyers, it’s the difference between staying stuck in the rental cycle and finally stepping into homeownership.
Is House Hacking Right for You?
Whether you’re a first-time buyer, a family looking to reduce monthly costs, or an investor wanting to start a portfolio, house hacking is one of the smartest real estate strategies in Ontario right now.
At GoWylde Real Estate, we specialise in income-generating homes across Guelph, Kitchener-Waterloo, and Cambridge. We’ll help you:
- Find homes with house hacking potential.
- Ensure units are legal and compliant.
- Run the numbers so you know exactly what to expect.
Because the right home shouldn’t just be a place to live, it should be a step toward financial freedom. Contact us for even more ideas!
Do you want to learn more about growing your wealth through real estate? Our top Guelph real estate agents are happy to help you explore your options. Reach out today at info@gowylde.ca or call 519-826-7109 for more information.
