Tiny homes are growing in popularity in Canada as affordable and eco-friendly housing options. The trend isn’t surprising, given today’s interest rates and the high cost of housing. In March 2024, the average price of a home in Canada, according to the Canadian Real Estate Association, was $698,530. Tiny homes cost much less and, of course, are much smaller than conventional homes. They’re compact living spaces, typically under 400 square feet and offer a minimalist lifestyle focused on efficient living and use of space. However, navigating the legal and practical aspects of owning a tiny home can be challenging.
If you’re considering joining the tiny home movement in Canada, here’s what you need to know:
Legal Issues
The legality of tiny homes in Canada varies by province and municipality. Some areas have specific regulations and zoning laws that address tiny homes, while others may not. It’s important to research the local bylaws and building codes in your desired location before purchasing or building a tiny house. You may have to meet health and safety regulations, minimum size requirements, restrictions on lot usage and more.
In general, tiny homes on foundations are often treated as regular homes, while those on wheels may be classified as recreational vehicles or trailers, which come with their own regulations. In some cases where tiny homes aren’t legal, you may be able to get around restrictions by putting the tiny home on wheels.
Some municipalities are starting to explore ways to accommodate tiny homes, such as allowing secondary suites or garden suites on residential properties. Note that these options may still come with restrictions around size, setbacks and other requirements.
Design and Construction
Careful planning is necessary when designing and building a tiny home. You’ll need to consider factors like layout, storage and energy efficiency. The easiest option is to work with specialized builders, but some people choose to build their own homes from a kit or even from scratch. No matter how you decide to go, you must ensure the design meets all relevant regulations.
For Canadians, looking for a homegrown manufacturer is a good idea. Several have extensive experience dealing not only with local building codes and regulations but also with our weather.
Vancouver-based manufacturer Mint Tiny House Company offers several models that can be used as an RV or parked on a serviced site.
A more upscale option is ARHOME by arcana. These tiny homes, designed by Vancouver-based architect Michael Leckie of Leckie Studio, fit beautifully into the natural environment. There are three exterior options and a mirrored cladding option. Prices start at $225,000, with delivery in 8-12 weeks.
There are lots of rumours swirling around about a Telsa tiny house. However, it still seems to be in the prototype stage.
You’ll also find plenty of tiny home options on Amazon. These include both tiny house plans and pre-fabricated structures.
Financing and Insurance
Obtaining financing for a tiny home can be more challenging than a traditional mortgage. Many lenders are unfamiliar with the concept of tiny homes, and some may not offer mortgages for these types of non-standard dwellings. However, some credit unions and alternative lenders are starting to recognize the growing demand for tiny homes and are developing specialized financing options.
Finding insurance coverage for a tiny home can be tricky, as standard homeowner’s insurance policies may not apply. Tiny houses on foundations may be covered under standard homeowner’s insurance, but tiny homes on wheels may need trailer or RV insurance. In all cases, the tiny house must meet safety and construction standards to be insured.
Location, Location, Location
Choosing the right location for your tiny home is key. You’ll need to consider things like zoning regulations, utility access (water, electricity, sewage) and the availability of land or RV parks that accommodate tiny homes. However, you don’t necessarily need a serviced lot. Some tiny homeowners decide to live off-grid, using solar panels, composting toilets and other sustainable systems.
Community and Support
One of the best things about adopting the tiny house lifestyle is that you’re never alone. While there are legal and practical hurdles, Canada’s community of tiny home enthusiasts and a variety of organizations like the Tiny Town Association are there to help you out with online resources. You’ll also find numerous location-specific tiny house groups on social media.
Adjusting to a New Lifestyle
Tiny house living isn’t for everyone. If you’re used to living in a full-size home, be prepared to make a significant lifestyle adjustment. You’ll have to downsize your possessions, selling them off or putting them into costly storage. You’ll be living in far less space, which can be challenging for couples and those with kids. Daily routines may have to change, too. But, for many tiny homeowners, reduced living expenses and less environmental impact are well worth the trade-offs.
The tiny home lifestyle can be a rewarding and fulfilling experience, but it’s essential to do your research and plan carefully. By understanding the legal, financial and practical considerations, you can avoid costly mistakes and enjoy the benefits of tiny home living.
