Finishing a basement is usually priced by its area and by what goes into it: a basic open room costs far less than one with a bathroom, a bedroom with an egress window, or a full legal secondary suite with its own kitchen and entrance. Before any finishing, moisture has to be dealt with, since water problems found after drywall goes up are the most expensive kind. This page breaks down each part of the cost. It is part of our directory of what things cost in Canada; renovation costs for the whole house are in how much it costs to renovate a house.
Levels of basement renovation
| Level | What it usually includes |
|---|---|
| Basic finish | Insulation, framing, drywall, flooring, lighting: an open recreation room |
| Mid-range finish | Adds a bathroom, a bedroom or office, better flooring and finishes |
| Legal secondary suite | A self-contained unit with its own kitchen, bathroom and entrance, built to code for renting |
The components
| Component | What drives its cost |
|---|---|
| Moisture control | Fixing drainage, sealing foundation cracks, a sump pump or a backwater valve, before any finishing |
| Framing and insulation | The wall area and the insulation required by the building code |
| Drywall and ceiling | Drywall vs a drop ceiling (which keeps pipes and ducts accessible); bulkheads around ducts |
| Electrical | New circuits, outlets and lighting; an upgraded panel if the existing one is full |
| A bathroom | Whether a rough-in already exists; a new drain below the floor costs much more |
| Flooring | Materials suited to basements (vinyl plank, tile, carpet over a subfloor) and the area |
| Egress windows | Required for a bedroom; cutting a larger opening in a foundation wall is a significant cost |
| Heating and ventilation | Extending ducts, or adding baseboard or in-floor heat |
A legal basement suite
A legal suite has to meet the building and fire codes and local zoning: a separate entrance, fire separation between units, smoke and carbon monoxide alarms, adequate ceiling height, egress windows and, in many places, separate heating or ventilation, all with permits and inspections. That adds substantially to the cost of a basic finish. Government incentives and loans for adding a suite, including the federal Canada Secondary Suite Loan Program, are covered in secondary suite incentives. The rent a suite can earn, and how the income is taxed, are covered in basement suite income.
Permits
| Work | Permit usually needed? |
|---|---|
| Painting, replacing flooring | No |
| New framing and drywall | Yes, in many municipalities |
| New electrical circuits | Yes (an electrical permit) |
| A new bathroom | Yes |
| A bedroom | Yes, with an egress window check |
| A secondary suite or separate entrance | Yes |
Permit fees and processing times are set by each municipality.
Return at sale
A finished basement adds usable space and usually some value, but the sale price rarely rises by the full cost of a basic finish; a legal suite can also add rental income, which changes the calculation. See how to increase your home’s value, and home renovation loans for paying for the work.