This Is How Much It Costs to Get a Laneway House Permit—Before Construction Even Starts
One of the first questions you may have when considering a laneway house is: “How much is this actually going to cost me?”
To answer that accurately, we have to split the budget into two buckets: Hard Costs and Soft Costs.
Hard Costs are the tangible things: the wood, the concrete, the labor, and the finishing.
Soft Costs are everything else: permit fees, city levies, consultants, and drawings.
Today, I want to focus on Soft Costs. These are often the "hidden" expenses that surprise homeowners. If you want to budget properly and avoid sticker shock, you need to understand these numbers before you break ground.
1. Drafting and Design
Floor plans
This is where the vision starts, and prices vary wildly based on the level of service you are looking for.
The Budget Route: If you just want a drafter to produce basic floor plans with standard finishes, you’re looking at a few thousand dollars.
The Architect Route: If you want a design tailored to your life and a turnkey service that handles the permitting headache for you, budget between $10,000 and $20,000+.
Tip: As an architect, I view the drawings as the most critical foundation of your build. Investing in high-quality design ensures a seamless construction process and guarantees a final result that is both functional and beautifully executed.
2. Development Cost Charges (DCCs)
On any net-new housing, the city charges DCCs to help fund local infrastructure. These rates depend on the type of development and even the size of the unit. As of December 10, 2025, the rate for a laneway house is $49.88 per m². Refer to the city’s DCL document here.
Example: On a typical 4,000 sq. ft. lot, a 25% build (1,000 sq. ft. laneway house) would result in a DCC fee of approximately $4,650.
3. City Permits and Utilities
The city requires a "pay to play" entry fee for almost every stage of the build. Here is a realistic breakdown of what to expect:
Sewer and Water Permit: Generally around $6,000. (You might get a small discount if your existing lines can be reused without an upgrade).
Building Permit Fee: Around $7,000 (this varies based on your total construction cost).
Mechanical & Plumbing Permits: $2,000
Electrical Permit: $1,600
Sprinkler Permit: $600
Tree Removal Permit: $450
4. The Consultants
Building a laneway house isn’t just about a builder and a drafter; you need specialized reports to satisfy city requirements.
Survey: Budget $600 – $1,000.
Structural Engineering: $3,000 – $5,000.
Pre-permit Energy Report: $2,000.
Arborist Report & Letter of Assurance (LOA): $500 – $800.
5. The Bottom Line
When you add it all up—assuming a professional $15k design fee—your total Soft Costs will land around $45,000.
It’s a significant amount of money to spend before you even pour the foundation, but knowing these numbers upfront is the best way to ensure you're fully prepared before you embark on your build.
| Item | Estimated Budget |
|---|---|
| Drafting & Design | $15,000 |
| Structural Engineering | $4,000 |
| Pre-permit Energy Report | $2,000 |
| Land Survey | $800 |
| Arborist Report & LOA | $700 |
| Building Permit Fee | $7,000 |
| Sewer & Water Fee | $6,000 |
| DCCs | $4,650 |
| Mechanical & Plumbing Permits | $2,000 |
| Electrical Permit | $1,600 |
| Sprinkler Permit | $600 |
| Tree Removal Permit | $450 |
| Total Estimated Soft Costs | ~$45,000 |
Questions?
If you have any questions about any of the above, contact us.
