Real Estate Lawyers Thornhill, Ontario

You can often lease a coach house or other part of real estate you own without informing your lender provided:

• you still occupy the home 
• your mortgage doesn’t require it
• and you are honest if your lender asks.

Selling real estate is a different matter. Your mortgage is secured by the equity in your home, which is why the lender is on the title. Transferring title to any part of real estate without consent can result in a demand for immediate repayment, or a court injunction to prevent or void the sale.

It definitely takes more work than being an employee. Fortunately, Ontario lenders are warming up to self-employed borrowers. With a positive cash flow (two to three years of steady income as demonstrated by your tax assessments), CMHC, Sagen™, or Canada Guaranty may offer real estate buyers a high ratio mortgage with 5%-19.9% down. 

Sagen™ or Canada Guaranty are options for entrepreneurs just starting out, or if your income fluctuates but you have a solid credit history. Both require 10% down. Otherwise, you may have to find a private lender, put 20% down, and prove you can support the monthly payments. Ask a mortgage broker or lender for pre-approval before you make a real estate offer.

Balconies in condos are usually “exclusive use” common elements. While only the owner can use their own balcony, the corporation is responsible for its upkeep. 

What you do with your balcony is restricted by your corporation bylaws, rules, and regulations. For instance, you can likely put out patio furniture for your own enjoyment, but you can’t hang laundry to dry or paint balcony railings. 

Common sense applies when it comes to repairs to strata real estate. If you or your guests damaged the balcony, you will likely have to repair it at your own expense. But if all the concrete balconies are pitted from exposure to rain and snow, the corporation reserve fund is used to restore the balconies to a safe condition. 

Ask the condominium corporation if you are uncertain who owns the balconies in a strata real estate project.

First off, have you checked real estate bylaw and zoning regulations in your community? Coach houses and granny flats require building permits, and some municipalities ban or limit their construction. Most are considered accessory units or secondary dwellings, not principal residences. For that reason, they are usually rented for extra income, or used as a flat by older children or seniors.

Just as you can add a spouse to a house title in Ontario, you can share ownership of a coach house or granny flat. Whether you can put a separate title on real estate depends on your  municipality, but generally the answer is no.