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Getting financing for your Ontario cottage is something that follows the same process as acquiring financing for your primary residence, but is not as easy to get. Lenders will often require a far more stringent check of your finances and will require your property to fit a more rigorous test of marketability in order to unclenching the funds that will see you sipping margaritas lakeside.
 
Since a cottage is not your primary residence, lenders will be a lot more fastidious about how much you can borrow comfortably and also about how marketable the place you are eyeing really is. They will look at criteria such as whether it is on a big or small lake, whether it is in a developed cottage country community or whether you are truly in the wilderness.
 
Lenders will also want to know that you have access to a good source of water as water problems can severely impact the resale value of a second home. Next, lenders will want to know whether it is a three-or-four season cottage. Most lenders prefer four-season places as they are more versatile and easier to resell.
 
In short, lenders want to know that you are buying a place that has value for them in case you default on your mortgage.
 
Since the CMHC rules have changed and they no longer insure second homes, if you don’t have enough of a down payment, then you will have to get your mortgage insured by a private lender.
 
Naturally the easiest way to acquire a second home is to pay for it outright – but let’s face it, it is a very small segment of the population who can actually afford that. However, if you are seriously considering the purchase of a second home, do yourself a favor and make sure that you are easily able to carry the costs of a second mortgage as well as the costs of maintaining a second home.

Cottage-buying is a fun endeavor as the end result is a pleasure place for your family to unwind at on weekends. Knowing what to look for in a cottage will save you money and hassle down the road, and more importantly, it will save regrets over not getting exactly what you want or what suits your family’s needs.
 
Here are a few tips on figuring out what’s best for you.
 
Region
Don’t underestimate the importance of buying in the right place. There are plenty of cottage areas from which to choose but they are decidedly not all the same. Some regions offer a more village-type atmosphere while others are completely off-grid and off-the-beaten path. Some areas can be easily driven to in a couple of hours while others require a longer commuting time. Some boast an abundance of lakefront properties while others are more secluded forest land. The area you choose will depend on how long you want to commute, the amenities you want nearby and the kind of set-up you require in a cottage.
 
Amenities
Another factor that will greatly influence what you buy are the kind of amenities the cottage has. Do you need a hook-up to a water main or can pumping water from a well suffice? Are you familiar with septic systems or do you prefer a compostable toilet? Are you willing to live off-grid or will you need an electrical hook-up? Do you require a road right up to your cottage or can you hike up part of the way? All of these factors will play a big role in figuring out what you are looking for.
 
Price
Naturally price is one of the most important factors in any real estate purchase. As the purchase of a cottage is not a primary residence a mortgage on it will be higher than a regular mortgage so you will want to be careful about how much debt you take on for a summer place.
 
Which brings us to the next point that you will have to decide – do you want a place you can use all year round or only for the warmer months?
 
Once you have decided on what you require in a cottage, it is time to begin the hunt. Although spring is usually the busiest buying season for cottages, fall is actually the better time to purchase as sellers will usually prefer a price cut to the carrying costs of hanging onto the place for another season.
 
Be sure to visit the place a few times at different times of day and drive around the neighbourhood and surrounding towns to get a feel for what the area is like. If at all possible go during different seasons to see what the foliage and privacy level is at various times of the year.
 
If you want a place on a lake, are you okay with a lake that permits motorized watersports? Also, you will have to find out whether the lake you are considering has a lake association board and inquire with them what rules or regulations are already in place.
 
Lastly, when negotiating with a seller, try to get items that you are likely going to have to buy thrown in – for instance canoes, snorkeling gear, paddle boards, etc…
 
Once you’ve found the cottage of your dreams, your family will certainly thank you for the purchase each time they are relaxing there on the weekends or on holidays.

Whether you call them cabins, cottages or chalets, the weekend get-away place located in the country to which thousands escape all year-round are certainly ubiquitous with Canadian life. Cottage living was typically the reserve of those with unlimited bank accounts, but with the addition of roads in out-of-the-way places, automobiles and inexpensive gas, the field was open to average Joes who wanted to experience a big of the good life.
 
Today, there are hundreds of summer retreats all over the province and, indeed, the country. What to look for in a cottage will depend on the kind of experience you want to have. Whether you prefer a fully winterized get-away located near a ski hill so that you can take advantage of the trails every weekend or whether you prefer a three-season place that will get you from May to October on a lovely lake, will determine where and how much your summer setting will set you back.
 
Naturally it isn’t necessary to buy a cottage if you can rent one. In many instances renting a cottage is actually a better bet as you don’t have to worry about maintenance, taxes or any of the other aspects involved with owning property. You just have to pay and then show up! Just remember that rentals can be costly depending on where you want to rent and during what season. Obviously off season rates will be far more affordable than during peak holiday or summer season, but can be just as enjoyable – especially if you rent a place near trails for hiking or biking, on a lake that supports water sports and/or near villages with lots of fun activities on offer.
 
Of course, if you want your own place, then there are two options – buying a real sale place or purchasing a lot and building your own place. There are pros and cons to both approaches but buying a resale place can be more affordable than building new in many instances. New builds will require you to invest in the installation of a septic system, a foundation and a water system (drilling a well). In many cases you will also have to pay for the soil to be tested and by the time all of these basic costs are covered you are already at nearly $50,000. There are ways of building a less expensive cottage, but it would involve you doing much of the contracting and building work yourself.
 
Buying resale, means getting a house with all of the infrastructure already in place – which is a great benefit. The only obstacle with this scenario is finding a home that is the right mix of old and new so that you aren’t stuck having to update/upgrade immediately after purchase.
 
If you have yet to experience life at a cottage, then know that it is something everyone should get to enjoy at least once in their life. The relaxation and detente achieved when surrounded by nature is second to none.

Renting property out in Toronto can be a lucrative undertaking. With housing prices skyrocketing and many buyers being priced out of the market, growing numbers of people don’t ever foresee buying a place of their own. However, while rental income can definitely boost your bottom line – it can also set it back when it comes to tax time. In order to play your cards right, it is best to be unformed when it comes to the tax implications of becoming a landlord.
 
Claiming the income
The first thing to remember is that you must claim any and all rental income that you get. Whether you are simply renting out the spare bedroom in your basement or luxury apartments, any rental income will be counted towards your total net income for the year. However, the amount that you declare will depend entirely on how much of the property you own. If you own 100% of the building, then you will have to declare all of it. If you co-own the property, then you and the other owner can potentially split the income with your co-owner.
 
Claiming expenses
Naturally if you own property, then you are allowed to claim expenses against the maintenance and upkeep of the property. There are two kinds of expenses that are allowed. The first is current expenses, which pertains to regular maintenance. The second is capital expenses, which pertains to any lasting improvement to the property – for instance fixing the roof.
If your expenses are greater than the rental income of your property, then you will end up with a loss. Any losses can be deducted from your rental and regular income (if you have a day job).
 
Keeping track
Having a good accountant or keeping meticulous track of all your income and expenses with your rental units will go a long way towards ensuring that you don’t run into trouble when it comes to tax time.
 
Incorporating
If you own more than one rental property, then it might be a good idea to incorporate yourself as a business in order to lower your tax burden as corporations are taxed at a lower rate than individuals. Keep in mind that if you choose to go this route you will have to hire an accountant to help you with the intricacies involved with such a business.
Regardless of what you choose, the one thing you must to is to find out about the property tax code so that you don’t have any surprises. The CRA website is a treasure trove of information on that account and you can find it at //www.cra-arc.gc.ca/rental/.

Renting out your property can be a little intimidating for a first time landlord. Attracting the right renters is crucial to a smooth and successful rental experience. The best way to get the kind of renters you want is to create the right kind of ad. Since most people won’t take the time to call unless they are really interested in your property, it is imperative to put all of the relevant details that they would need into your ad. However, remember that catching someone’s eye is crucial and for that you must keep it short and snappy.
 
In today’s world of soundbites and 30-second news clips, no one want to read a dense paragraph describing your rental unit. Instead keep your listing as short and succinct as possible using bullet points and different fonts to draw attention.
 
Be sure to include such details as:
– Security deposit
– Number of bedrooms
– Number of bathrooms
– Whether it is upper or lower floor
– Location
– What’s nearby such as shopping, transportation, etc…
– Cost
– Whether you accept pets or not
 
Once you have your list put together, you are ready to write your ad. Include good pictures where possible so that they have a good idea of what they will be getting.
 
Next, post to as many websites as possible including Craigslist and Kijiji. If you are worried about vetting the potential renters by yourself, you can also enlist the aid of a knowledge real estate agent who can help you find tenants. Usually such a request will cost you the first month’s rent, but it is worth it for those who would rather forego the trouble of finding tenants themselves.
 
As long as you find the right tenants, you will have a smooth time with your rental unit.

Listing your home on Airbnb or any other sharing website is a great way of making some extra money on the side. However, before jumping into such a situation, make sure that you are prepared for the work that it will entail and the risk that you will assume.
 
Firstly, check with the laws in your province to make sure that you are allowed to rent your home out as a short term holiday rental – in some places Airbnb has been banned.
 
Secondly, be sure that you organize yourself properly. Take good pictures of  your place. Good pictures will sell your rental quicker than mediocre ones. Make sure that your home is clean and looks attractive.
 
Next, sell your neighbourhood and the attractions of your city and your location. A good write up in a friendly, approachable manner will go a long way toward bringing renters calling.
 
It is a good idea to also invest in extra amenities including towels, pillows, blankets, linens, utensils, etc… it will save you the hassle of having to rush to clean everything before the next renters come in. Having extras on hand will mean that you can swap out the used items for clean stuff while you clean up.
 
Put together a little book containing a list of your house rules, how to use the local transportation and anything else that someone new to our city would need to know.
 
Another good idea is to include a small fee for laundry and cleaning as this will cover the extra costs you will incur for such items.
 
Lastly, remember that it is good to be friendly to the renters, but you don’t have to be their best friend. Let them know that if they need you, they can reach you, but otherwise let them explore and have fun on their own.