Legality of in-law suit house hack.

I have a question regarding the legality of house hacking using a single family home with and in-law suite, in Hamilton, Ontario.

I am looking at a single family property, with an in-law suite (illegal basement apartment) that I would like to house hack. I plan is to rehab and personally occupy the basement, while renting out the spacious upstairs. I am aware of the legal issues/insurance issues associated with renting out an illegal basement unit, but I am wondering if by occupying the basement myself, I avoid these legal hiccups?