Toronto real estate has changed dramatically over the last decade. As prices have risen and land has become increasingly scarce, homeowners are starting to realize that the true value of their property is often in the lot, not the house.
In neighbourhoods like Etobicoke, where many homes sit on wider parcels of land, lot severance has become a common and effective way to unlock that hidden value.
This guide explains what lot severance is, why it’s happening more often across Toronto, how the process works, and why Etobicoke presents both opportunity and complexity.
What Is Lot Severance?
Lot severance (also known as land severance or consent) is the legal process of dividing one property into two or more separate lots. Each new lot receives its own title and can be sold or developed independently.
In Toronto, severance is regulated under Ontario’s Planning Act and administered by the City through the Committee of Adjustment.
Without approval, a property cannot legally be split, sold as multiple parcels, or developed separately.
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Why Lot Severance Is Becoming More Common in Toronto
Lot severance is not a trend — it’s a response to structural pressures in Toronto’s housing market.
Toronto is running out of land for ground-related housing. At the same time, demand for detached and low-rise homes remains extremely strong. Severance allows new housing to be created within existing neighbourhoods, without expanding the city outward.
This approach aligns directly with the City’s planning policies, which prioritize efficient land use and incremental intensification.
Gentle Density Is Now a City Priority
Toronto is actively encouraging what planners call “gentle density” — small-scale additions to housing supply that preserve neighbourhood character.
Lot severance supports this goal by allowing one home to become two, often without changing the streetscape dramatically.
This strategy is reinforced through the City’s Expanding Housing Options in Neighbourhoods (EHON) initiative, which supports additional low-rise housing forms in established areas.
Land Value Has Overtaken Building Value
In many Toronto neighbourhoods, especially Etobicoke, land value has grown faster than the value of the existing house.
Older homes often contribute less to total property value than the land they sit on. Severance allows homeowners to separate land value from building value and unlock it more efficiently.
Two buildable lots can often be worth significantly more than one large lot with an aging structure.
Why Homeowners Choose to Sever Their Lots
Maximizing Property Value
One of the primary reasons homeowners pursue severance is value maximization.
In the right context, two buildable lots can significantly outperform one large lot in total market value. Builders, investors, and end users often pay a premium for lots with clear development potential.
Monetizing Excess Land Without Moving
For long-term homeowners, severance can unlock capital without requiring a full sale.
Selling part of a lot can fund retirement, renovations, or family plans — while allowing the owner to stay in the neighbourhood.
How Lot Severance Works in Toronto
Step 1: Check the Zoning
Every property in Toronto is governed by zoning regulations that control lot frontage, lot area, building size, and setbacks.
Zoning can be reviewed using the City’s official interactive map:
City of Toronto Zoning By-law Map
https://map.toronto.ca/maps/map.jsp?app=ZBL_CONSULT
Step 2: Feasibility and Precedent Review
Most successful severances begin with a feasibility review.
This includes analyzing zoning, reviewing nearby approvals, and understanding whether similar lot splits already exist on the street or in the immediate area.
In Etobicoke, street-by-street precedent is often the deciding factor.
Step 3: Apply to the Committee of Adjustment
Most severance applications are reviewed by the Committee of Adjustment and often include:
- A consent (severance) application
- Minor variance applications if zoning standards are not met
City reference:
Applying for Land Severance
Step 4: Public Notice and Hearing
Once an application is complete:
- Neighbours are notified
- A public hearing is held
- The Committee issues a decision
Approvals often come with conditions that must be satisfied before lots are legally created.
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Lot Severance in Etobicoke: What Makes It Different
Etobicoke typically has wider minimum frontage requirements and strong neighbourhood character policies.
Because of this, frontage variances are often the biggest challenge, and approvals depend heavily on nearby examples.
Two similar severance applications can receive very different outcomes depending on the block.
Taking the First Step
Lot severance is becoming more common in Toronto because the city is evolving. Land is more scarce, intensification & density are paramount and the housing demand remains strong. Planning policy supports better use of existing neighbourhoods, which gives people more opportunities with existing lots to create more housing.
In Etobicoke, severance can be a powerful way to maximize land value — but success depends on zoning knowledge, precedent, and realistic expectations.
If you’re looking for help on finding a lot that can be severed or subdivided, contact our team anytime and we can guide you into the right location and can help with getting you in contact with the city planners & builders you will need.
Selling your home? Call (416-884-8027) or email (team@amblerhomes.com) today for a free seller’s consultation or for more information about how we can help!
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