What to Look for in a Custom Home Lot in Toronto
Finding the right lot is the foundation of your custom home project. In Toronto, where buildable land is scarce and regulations are complex, choosing wisely can save you months of delays and tens of thousands in unexpected costs.
Before you fall in love with a property, here's what you need to evaluate to ensure your lot supports your vision.
1. Zoning & Buildable Area
Check the zoning designation first. Toronto's zoning bylaws dictate what you can build, how large, and where on the lot.
Key factors:
Lot coverage limits (often 30-45% of total lot area)
Required setbacks from front, side, and rear property lines
Maximum building height restrictions
Floor space index (FSI) which controls total square footage
A 50-foot-wide lot might only allow a 30-foot-wide home due to setback requirements. Understanding these constraints early prevents design disappointment later.
Pro Tip: Before making an offer, consult with a Toronto custom home builder who can assess what's actually buildable on the lot.
2. Lot Size & Dimensions
Bigger isn't always better—but shape matters.
Consider:
Minimum width: Most custom homes need at least 30-40 feet of frontage
Depth: Affects garage placement and backyard usability
Irregular shapes: Can limit design options or increase costs
Corner lots: Offer more natural light but have additional setback requirements
A narrow, deep lot may require creative design solutions that add cost. A pie-shaped lot might waste buildable area.
3. Existing Services & Utilities
Confirm all essential services are available:
Municipal water connection
Sanitary sewer access
Storm sewer or drainage infrastructure
Gas, hydro, and telecom at the street
Adequate water pressure for your home size
Red flags:
Shared services with neighbors requiring easements
Deep utility connections requiring expensive trenching
Inadequate sewer capacity for larger homes
Connecting to services can cost $10,000-$50,000+ if not readily accessible.
4. Soil Conditions & Drainage
What's beneath the surface matters.
Toronto's clay-heavy soil can complicate construction, but proper assessment prevents costly surprises.
Essential evaluations:
Geotechnical report: Confirms soil bearing capacity and composition
Drainage patterns: Natural slope and water flow direction
Groundwater levels: Affects basement waterproofing requirements
Fill history: Previously filled lots may require special foundations
Warning signs:
Standing water after rain
Wet or marshy areas
Neighbours with chronic basement water issues
Properties in ravine or valley locations (may require conservation authority approval)
5. Trees & Environmental Constraints
Toronto has strict tree protection bylaws.
Consider:
Protected trees that cannot be removed
Tree preservation zones that limit construction areas
Setback requirements from significant trees
Potential root damage during excavation
A beautiful treed lot can add costs and design constraints if protected trees limit your buildable footprint. Removing protected trees requires permits and often compensation planting.
Ravine lots offer privacy and natural beauty but may require:
Conservation authority approval (adds 3-6 months)
Increased setbacks from ravine edges
Enhanced stormwater management
Geotechnical stability assessments
6. Neighbourhood & Long-Term Value
Your lot's location impacts daily life and resale value.
Evaluate:
School districts and quality ratings
Walkability to transit, parks, and amenities
Traffic patterns and noise levels
Future development plans for surrounding properties
Character of the street and neighboring homes
A lot on a busy street might be less expensive but harder to resell. A quiet cul-de-sac in an established neighborhood typically holds value better.
7. Access & Construction Logistics
Can construction equipment actually reach your lot?
Check:
Street width for crane access and material deliveries
Overhead power lines that limit crane movement
Narrow laneways or rear access challenges
Parking restrictions during construction
Limited access can increase costs through additional labor or specialized equipment requirements.
8. Purchase Conditions & Due Diligence
Always include protective conditions in your offer:
Subject to satisfactory zoning review
Subject to geotechnical report
Subject to survey confirming lot dimensions
Subject to builder feasibility assessment
Subject to financing approval
These conditions let you walk away if critical issues emerge—before you've committed hundreds of thousands of dollars.
Common Lot Selection Mistakes to Avoid
Buying based on price alone without understanding buildability
Assuming zoning allows your dream design without verification
Overlooking easements or rights-of-way that restrict building area
Ignoring drainage and soil issues that add cost later
Falling in love with the location without assessing construction logistics
The right custom home lot balances location, buildability, and value. In Toronto's competitive market, finding land that meets all your criteria requires patience and expert guidance.
Before making an offer, consult with an experienced Toronto custom home builder who can assess zoning, evaluate construction feasibility, and help you understand the true potential—and limitations—of any property.
The perfect lot is out there. With the right evaluation process, you'll find it.
Ready to Assess a Lot for Your Custom Home?
We offer complimentary lot feasibility assessments for prospective custom home clients. Bring us your potential property before you buy, and we'll provide expert analysis of what's possible.