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Seeds/Home Daycare

Seeds: Home Daycare Guide

You already know how to care for children. Here is how to make it official.

Opening a licensed home daycare is the most accessible entry point into Canada's childcare sector.

Built from Ontario.ca, BC.gov, and Ministry guidelines. Updated May 2026.

Section A

What Is a Licensed Home Daycare?

A licensed home daycare (called "licensed home child care" in Ontario and "family child care" in BC) is a childcare program that takes place in your own home. You are the educator. You set the rhythm. You build real, lasting relationships with the small group of children you care for.

It is NOT the same as babysitting or unlicensed care:

  • Licensed home daycares are overseen by provincial government
  • You receive professional support from a trained home visitor
  • You are eligible for provincial subsidies and CWELCC funding
  • Families can apply for the Child Care Fee Subsidy to pay your fees
  • You are protected by professional insurance and agency support

Capacity by province:

Ontario

  • Up to 6 children under age 13 at any time (including your own children under age 6)
  • Maximum 3 children under age 2
  • You operate from your home only

British Columbia

  • Up to 7 children (Family Child Care) including your own children under age 13
  • Maximum group size determined at final inspection

Section B

Ontario Step-by-Step Guide

Important: How Ontario licensing works

In Ontario, individual home daycare providers are NOT licensed directly by the Ministry of Education. You must be contracted to a licensed Home Child Care Agency. The agency holds the licence. You are their contracted provider. This is not optional. This is actually a good thing: your agency provides training, home visitor support, insurance, and access to CWELCC funding that you could not access alone.

1

Understand the Rules

Key limits in Ontario:

  • Maximum 6 children under 13 at any time (including your own children under 6)
  • Maximum 2 children under 2 years old
  • You may operate at only one location (your home)

Before you are licensed:

You may care for up to 5 children total (including your own) as an unlicensed provider, but you must inform parents in writing that you are unlicensed, and you are not eligible for CWELCC funding.

2

Income and Time to Expect

Full-time licensed home daycares typically operate Monday to Friday, approximately 7:30am to 5:30pm, 47 to 49 weeks per year.

Estimated annual income (Ontario, CWELCC-enrolled):

  • 5 children at $22/day x 245 days: approximately $26,950/year gross
  • 6 children at full capacity: approximately $32,340/year gross
  • Plus CWELCC operating subsidy (variable by region)
  • Minus food, supplies, insurance, agency fee, software ($8,000 to $12,000/year)
  • Net income range: approximately $18,000 to $25,000/year (full-time, licensed, CWELCC-enrolled)

Income is modest but comes with real benefits:

Working from home, no commute, significant tax deductions (home office, meals, supplies), personal satisfaction, and meaningful community impact.

3

Prepare Your Home

Your home must meet these minimum requirements before your inspection:

  • Dedicated play space with enough room for enrolled children
  • Sleeping area with individual, labeled sleep surfaces (cots or mats). Infants must sleep in a crib or playpen.
  • Separate safe food preparation area (kitchen must pass health standards)
  • Working smoke detector on every level, tested and dated
  • Working carbon monoxide detector, tested and dated
  • Fire extinguisher present and accessible (not to children)
  • All medications, cleaning products, and chemicals locked away
  • All stairs have safety gates (top AND bottom for infants/toddlers)
  • All electrical outlets covered
  • Safe outdoor play area (fencing recommended for infants/toddlers)
4

Get Your Certifications

Required before your agency home visit:

Standard First Aid plus Infant/Child CPR

Must be from a WSIB-approved provider (not online-only). Cost: $80 to $150. Renewal: every 3 years.

Recommended providers:

Vulnerable Sector Check

Obtained from your local police service or OPP detachment. Must include vulnerable sector screening. Typical turnaround: 2 to 8 weeks. Cost: $25 to $80. Renewal: every 5 years.

Strongly recommended:

  • ECE Diploma (RECE designation): Not legally required for home care providers in Ontario, but significantly strengthens your application and qualifies you for the CWELCC Wage Enhancement Grant.
  • Safe food handling certificate: Available through your local public health unit. Cost: Free to $40.
5

Find a Licensed Home Child Care Agency

This is the most consequential decision you will make. Your agency is your licensor, your support system, your professional home.

How to find an agency near you:

Questions to ask every agency:

  1. 1Are you currently accepting new home providers in my area?
  2. 2What is your agency fee or percentage of earnings?
  3. 3How often does my home visitor come? What happens between visits?
  4. 4What training and professional development do you provide?
  5. 5Do you help me apply for CWELCC funding?
  6. 6What is your process if I need to close temporarily (illness, vacation)?

Red flags in an agency:

  • They want you to enroll families before your home is approved
  • They cannot clearly explain how CWELCC funding works
  • Home visitor contact is less than monthly in your first year
  • The agency fee is above 15% without clear justification
6

The Application Process

Phase 1: Agency Onboarding

2 to 8 weeks

Initial meeting, certifications review, preliminary home assessment, complete agency-required training.

Phase 2: Ministry Application

Submitted by your agency

Documents submitted include: personal information and home address, proposed capacity, floor plan/description of childcare spaces, emergency and evacuation plan, policies (nutrition, illness, rest, screen time, prohibited practices), proof of certifications.

Phase 3: Inspections

Scheduled by Ministry

Ministry assigns a Program Advisor. Includes home visitor inspection, health inspection (local Public Health Unit), fire safety inspection (local fire department).

Phase 4: Licence Issued

Ready to open

Licence posted visibly in your home. Required before you accept fees.

Total timeline

3 to 6 months from first agency contact to licence in hand.

Key links:

7

Apply for CWELCC Funding

Once licensed and contracted to an agency:

CWELCC Start-Up Grant

Up to $1,200 per new licensed space, maximum $7,200 per provider. Applied through your agency, then your local CMSM/DSSAB.

Find your CMSM

Ongoing Operating Funding

Monthly subsidy applied through your agency and CMSM after opening.

Wage Enhancement Grant (if you hold RECE)

$1/hr annual increase through 2026. Your agency coordinates this application.

8

Startup Cost Estimate (Ontario, Home Daycare)

ItemEstimated Cost
First Aid/CPR certification$80 to $150
Vulnerable sector check$25 to $80
Safety equipment (gates, locks, detectors)$200 to $500
Cots/sleep mats per child$50 to $120 each
Play equipment and toys$500 to $1,500
Art and program supplies$200 to $500
Insurance (childcare/liability)$600 to $1,200/year
Agency fee (varies by agency)$0 to $500
Sprout Home plan (software)$49/mo CAD
TOTAL STARTUP ESTIMATE$2,000 to $5,000
Monthly operating estimate$300 to $600

CWELCC start-up grants (up to $7,200) can offset a significant portion of these startup costs.

Section C

British Columbia

In BC, home-based childcare is called Family Child Care. The key difference from Ontario: in BC, you apply directly to your local health authority's Community Care Facilities Licensing (CCFL) office, not through an agency. A licence is required when you care for 3 or more children who are not related to you. Maximum group size is 7 children.

Contact your regional health authority first:

Section D

Quebec

In Quebec, home childcare is called service de garde en milieu familial. Providers work through a Bureau coordonnateur (coordinating office). Capacity: up to 6 children (under age 12), including your own. Parent fee (2026): $9.65/day.

Important 2026 change:

From September 1, 2026, unrecognized home childcare providers wishing to care for more than 2 children will require a permit from the Ministere de la Famille. If you are currently caring for 2 to 6 children without recognition, you need to begin this process now.

Find your coordinating office: mfa.gouv.qc.ca

Section E

Do not open your doors without the right insurance.

Every licensed home daycare provider needs childcare-specific liability insurance. Your personal homeowner's insurance does NOT cover childcare liability, and most policies will void your coverage if you run a business from your home without notifying them.

What you need:

  • Commercial General Liability Insurance (CGL): Minimum $2,000,000 per occurrence (most agencies require this)
  • Many agencies have group insurance arrangements for their home providers. Ask your agency first.

Independent brokers who specialize in childcare:

Annual cost: approximately $600 to $1,200/year

Before you open:

Inform your home or renters insurance provider that you are operating a licensed childcare business from your home.

Ready to take the next step?

Join operators across Canada who are using Sprout and Vine to plan and run their childcare programs.

Apply to the Founding Operators Program

Get the home daycare checklist as a PDF

A complete licensing checklist, cost estimate, and step-by-step guide. Free.