Toronto quietly changed the game. Scarborough North lot allows up to 6 units—as-of-right. Most people don’t know it yet. Here’s how you can act on it before everyone else does.

Toronto real estate is full of noise: sales are down, interest rates stalling, construction at a stand still, and headlines about towers that may never get built.

But beneath all that chaos, something major happened.

The city legalized as-of-right multiplexes. Quietly. Without much fanfare. And it’s probably the most important zoning reform Toronto has seen that will definitely reshape urban infill. 

If you’re a small developer, builder, or investor, this is your moment. Let’s break down what this change actually means—and why it opens the door to smarter, faster, and more profitable projects in 2025.

1. What Is “As-of-Right” Multiplex Zoning?

As-of-right means you’re allowed to build up to 6 residential units on almost any lot in Scarborough North without needing rezoning or variances.

That means:

  • No Committee of Adjustment
  • No community consultation (bye-bye NIMBY”S)
  • No councillor sign-off
  • No multi-year approval timeline

As long as your project meets the height, setback, and lot coverage rules, it’s by-right. You submit your permit drawings and build. Simple.

2. What Changed—and Why It Matters

Before the zoning reform, Toronto’s residential neighborhoods were protected by exclusionary zoning. In most of the city, you could only build one detached house per lot.

That was the rule for decades.

But in 2023, things began shifting. The province and the city, under pressure to increase supply, changed course allowing up to 4 units as-of-right everywhere. Now they’re allowing up to 6 units for Scarborough North, and soon to be city wide. 

The result? Every single-family has potential for a development opportunity.

It’s not limited to “designated zones.” It’s eventually going to go citywide.

3. Why This Is a Goldmine for Small Developers

If you’re a tower developer, this doesn’t move the needle. But if you’re building infill, this is huge.

Here’s what it unlocks:

  • Speed: No zoning delays means faster time to build.
  • Scale: Repeatable 6-plex builds with immediate approvals.
  • Financing: CMHC MLI Select loans available for 6-unit purpose-built rentals.
  • Cash Flow: 6 doors = more rental income from the same footprint.

You can now build without red tape, and with government-backed financing that supports long-term ownership.

4. Real Example: A Scarborough 6-Plex Play

Let’s say you find a lot size that’s 50×100 in Scarborough North with a tired bungalow on it.

You:

  • Buy the lot for ~$900k
  • Design a 6-plex within zoning rules
  • Build for ~$1.9M
  • Rent 1 bedroom for $2,100/month and 2 bedroom for $2,800/month (or more for family-sized units)

With CMHC MLI Select, you could finance most of the cost with long amortization and low interest. That’s positive cash flow in Toronto, with low turnover, low maintenance, and long-term upside.

What if the lot is big enough for a legal severance? You can nwt build 12 units as-of-right!

5. Why So Few Are Moving on This

Here’s the kicker: Most people don’t even realize the rules have changed.

  • Real estate agents still pitch single-family homes.
  • investors/builders/developers are hung up on the Fourplex model.

But that’s exactly what gives you the edge. This moment is early. The city has given us the green light—but the market hasn’t caught up.

That’s your window.

6. What’s Next: Scaling the Right Way

With as-of-right zoning in place, the only thing holding back multiplex development is execution. You don’t need to invent a new strategy—you just need to repeat a proven one.

Your next moves:

  • Find deep or wide lots in Scarborough North and eventually city wide once approved.
  • Partner with designers who know how to maximize rental income with the right  unit size/’design.
  • Work with CMHC-savvy lenders who understand the MLI Select program
  • Raise capital with investors who care about long-term value and passive income

That’s it. No towers. No speculation. Just smart infill housing that solves a real problem—and makes real money.

Final Word: The Opportunity Is Now

Scarborough North just made it legal to build 6 units anywhere within this area. 

No variances. No rezonings. Just submit drawings, build, and rent.

It’s the biggest zoning shift no one’s talking about—and it won’t stay under the radar forever. Once the market catches up, land prices will rise and soft costs will follow.

If you’re serious about building a long-term portfolio, this is your window. We’re already building. Already financing. Already cash-flowing.

Let’s build, baby, build.