Basement Renovation Cost in Toronto: A Complete 2025 Guide

So, you're thinking about finally transforming that dark, underused basement into something more, right? Maybe a home gym, a rental suite, or just an inviting extension of your home. Quite exciting, isn't it?

But before you start picking paint colours or flooring options, there's one big question every Toronto homeowner faces: how much will that actually cost?

Basement renovations can vary wildly in price based on what exactly you want to renovate. So, it's important to understand what goes into the total basement renovation cost (spoiler alert: if you're well-prepared, you can actually save thousands down the road!).

Therefore, in this article, we'll explain everything in detail: basement layout planning, building permits, plumbing and electrical work, egress windows, and more!

Key Takeaways

• Basement renovation costs in Toronto vary widely, from a few thousand for basic updates to over $100,000 for full remodels or secondary suites. The floor space size determines all the costs related to the renovation process.
• Major expenses include framing, plumbing, waterproofing, electrical work, flooring, drywall, and HVAC systems, with plumbing and waterproofing often driving up costs the most.
• The condition of your existing basement (moisture, cracks, low ceilings) will determine how much preparation or repair work is needed.
• A well-planned basement renovation can deliver an ROI of 50–75%, especially if you convert it into a legal secondary basement suite that generates monthly rental income.

How Much Does a Basement Renovation Cost?

On average, you can expect to pay between $20,000 to $90,000 or more for a basement project. Here's a quick breakdown of average prices depending on square footage:

Basement Renovation: What Will You Be Paying For?

Before planning for a basement renovation project, it's important to understand what exactly you're planning for, meaning what you'll be paying for precisely, depending on the scope of your project.

Therefore, in the following sections, we’ll break down bathroom renovation costs related to framing, plumbing, drywall, flooring, painting, ceiling choices, and electrical work.

Basement Layout and Design Planning

Before starting any construction, you'll have to plan your basement layout carefully. This step involves designing how the space will be divided, so if you don't have any experience in this field, you may have to hire a designer or architect.

It can cost anywhere between $1,000 and $5,000 for design and drawings, depending on the project's complexity and size.

Framing Costs

Wooden framing outlines rooms in your basement and determines door, window, and closet installation. The cost of wooden framing typically ranges from $15 to $30 per linear foot. The amount of wall space, the price of lumber, and labor costs can influence the overall cost.

On average, for a 700 sq ft basement, you can expect to pay $3,700 and $6,700 for framing.

Plumbing Installation

If you want to install a bathroom or kitchenette in your basement, you'll need to hire a licensed plumber who can ensure proper water supply and drainage systems.

The plumbing cost can be quite high because the plumbers have to cut and trench through the concrete to install drain pipes and then connect them to the home's sewer stack. This will cost between $3,500 and $7,500.

Then, installing fixtures, tiling, and ventilation can increase the price to up to $30,000.

Drywall Installation

If you add a new wall in your basement, you'll have to install drywall, which is done after framing. The cost of drywall panel installation averages around $3-$6 per square foot, but the total cost primarily depends on what type of drywall you want to install and the area where it needs to be installed.

Flooring

The price for flooring work highly depends on what exactly the renovation implies. Do you need to redo the subfloor? Do you need to install insulation and padding? Do you want to just add a finish to the concrete floor?

On average, you can expect to pay anywhere between $1 and $40 per square foot for flooring work. Here's a breakdown of average costs based on materials:

Painting Expenses

Painting costs for your basement can range from $3 to $8 per square foot. The final price depends on the basement layout, the age of the basement, code compliance, and the number of rooms, as well as paint quality, patterned paint features, and the addition of customised finishes.

Ceiling Choices

Don't forget about the ceiling! If you don't want your basement to look unfinished, you should cover any exposed pipes and wiring. Plus, you can also install some extra lighting if you renovate the ceiling as well.

The ceiling can be drywalled or it can be suspended with tiles installed on a grid. Drywalled ceilings cost approximately $5 per square foot, while drop ceilings cost between $2 and $6 per square foot.

Electrical Work

You'll have to install electrical outlets in each room and at multiple points; therefore, the average basement renovation cost for electrical work highly depends on the size of your basement, the number of rooms, and the number of appliances that will be used there.

On average, you can expect to pay anywhere between $2,500 and $10,000 for electrical work or $50-$100 per hour.

Window and Door Installation

Don't forget about windows and doors, which are very important for a basement's temperature and humidity levels, as well as structural integrity. Basements are prone to high humidity, and if basement windows are not of high-quality, the risk of water leaking into your space increases. This also increases the risk of mold growth and other issues related to excess moisture.

Therefore, make sure to include the price for high-quality windows in your basement finishing cost breakdown. Overall, you can expect to pay between $500 and $2,500 for new basement windows. Plus, if the window is below ground level, you'll have to install a window well, which adds to the final price.

Furthermore, if you want to install, for example, a walkout basement door, expect to pay between $2,000 and $11,000 for it.

Building Permits

When you undertake work like finishing a basement, altering the structural framework, adding plumbing/electrical features, building a separate entrance, or creating a secondary suite, you'll generally need to apply for a building permit.

Permit application costs generally range between $2,000 and $4,500.

Foundation Repairs

Foundation repairs refer to the work done to fix structural or water-related problems in the basement's foundation walls or slab. This could include crack repair, wall bracing, or underpinning. Depending on what repairs need to be done, you may have to pay between $500 and $10,000 or more for foundation repairs.

Waterproofing

Waterproofing your basement means installing systems or membranes to prevent or manage water ingress through walls or floors. You can choose to install interior systems or exterior systems. Interior systems are usually more budget-friendly, ranging between $3,000 and $10,000, while exterior waterproofing is more expensive, sometimes reaching $30,000.

Heating, Ventilation, and Air Conditioning (HVAC)

Since basements naturally have cooler temperatures and higher humidity, you'll also have to consider the costs for extending your existing HVAC system or installing a separate one for your basement.

Your contractor may need to add ductwork, new vents, or even a separate mini-split system if the main HVAC system can’t handle additional square footage. This can cost between $3,000 and $8,000.

Soundproofing

Soundproofing might not be the first thing that comes to mind when renovating a basement, but it makes a big difference in comfort, especially if your basement will serve as a livable space or rental suite.

Common soundproofing methods include:

• Installing acoustic insulation between joists and studs
• Adding resilient channels before drywall to dampen vibration
• Using sound-absorbing panels on ceilings or shared walls

Soundproofing usually costs between $5 and $10 per linear foot of wall.

Lighting and Smart Features

Since most basements have limited natural light, you can consider installing layered lighting, including recessed lights and pendant lights.

You can also install smart lighting systems that allow you to control brightness, colour temperature, and schedules via smartphone or voice command. Consider pairing them with smart thermostats, humidity sensors, and smart plugs for better energy efficiency and convenience.

The final price for lighting and smart features really depends on what exactly you want to install. For example, a full setup of smart upgrades can cost between $1,000 and $3,000.

Basement Renovation Costs: Return on Investment (ROI)

Depending on the quality of the renovation and how the space is used, you can expect an ROI of 50% to 75% of your investment, as it can significantly increase resale value.

If you convert your basement into a legal secondary suite, your ROI can be even higher. For example, basement apartments in Toronto can generate around $1,500 per month in potential rental income, which varies depending on location and features.

Here's a tip: focus on waterproofing, insulation, and air quality first, as buyers and tenants value a dry, comfortable basement more than luxury finishes.

How to Save Money on Your Basement Renovation in Toronto

The first step is to gather multiple quotes. Always compare at least three professional contractors to find the best balance between price and reliability.

Then, make sure to plan everything ahead. This way, you can prevent any changes or unexpected costs mid-project. If you know exactly what you want before you begin remodeling your basement, you'll avoid costly revisions later.

Another great way to save money is by doing small tasks yourself, as long as you're confident in your skills. For example, you can paint the basement walls yourself, install lighting fixtures, or clean the space with your family or friends after the renovation is completed.

If your project includes multiple types of work, you can bundle services whenever possible or opt for turnkey renovation services, as this can cost less than hiring separate contractors.

You can also save by reusing materials wisely: consider refinishing your existing concrete basement floors instead of installing new flooring, repainting cabinetry, or reusing interior doors if they’re still in good condition.

Don’t forget to check for local rebates or incentive programs. Toronto offers financial incentives for energy-efficient renovations or for creating a legal apartment, which can offset a portion of your renovation expenses.

Last but not least, as a rule of thumb, always set aside a 10-15% contingency fund for additional costs incurred by unexpected issues such as hidden leaks, structural changes, or outdated wiring.

Final Thoughts

Renovating a basement can indeed be quite expensive, but think of it as an investment in your property and also in your comfort. You can turn it into a guest room, a game room, a wet bar, a home office, or simply a family entertainment room. Plus, if you set your goals beforehand and plan wisely, you can end up spending way less than expected.

And if installing windows is part of your basement renovation plan, contact Magic for a free consultation! Our windows are engineered specifically for Canadian weather, so you can rest assured that your basement stays dry, well-insulated, and temperature efficient year-round!

Frequently Asked Questions

How much does it cost to finish a 1000 sq ft basement in Canada?

You can expect to pay roughly $55,000 to $75,000 for a standard finished basement of a 1,000 sq ft space in Canada, with costs rising significantly if you include premium finishes or add a basement bathroom/kitchen. In high-end or complex cases (such as legal secondary guest suites or full plumbing/electrical upgrades) the cost can climb toward $100,000+.

Is it worth converting a basement?

Generally, yes, it can be worth converting a basement if it's executed well: finishing a basement often adds usable living space and can deliver a return on investment (ROI) of around 70% to 75% of the cost in many Canadian markets. However, the value depends heavily on factors like location, quality of finishes, code compliance, and future resale timing.

What is the most expensive part of finishing a basement?

The most expensive part is typically ensuring code compliance and structural/safety upgrades, such as adding egress windows, increasing basement ceiling height, installing plumbing or electrical systems, and addressing moisture or foundation issues.

Is it worth renovating a basement?

Yes, renovating your basement can definitely be worthwhile if you factor in both immediate benefit (extra living space, rental potential) and long-term value. Most data shows you might recoup 50% to 75% of the renovation cost in home value uplift. That said, if you’re doing it just for resale and don’t plan the project carefully (or need it done quickly), the financial return may be less compelling.

How much does it cost to add a bathroom to a basement?

Adding a bathroom to your basement typically costs between $15,000 and $20,000.

Do I need a permit for basement renovations?

Yes, a building permit is typically required for basement renovations to ensure compliance with local building codes, but it highly depends on the type of renovations you plan for.

How can I save on the cost of a basement renovation project?

To save on basement renovation costs, opt for cost-effective materials, consider whether to undertake the project yourself or hire professionals, and focus on essential features rather than luxury finishes.