Despite the name, a ghost mortgage is not what you have on a haunted house! Also called phantom mortgages, fictional mortgages, occupancy fees and phantom rent, ghost mortgages are often placed on condos that are purchased while they’re still in the development stage.

In Ontario real estate law, a property doesn’t officially exist until it’s been registered in the province’s land registry system – and this process can take quite a bit of time with new condos because there are often hundreds of them being entered at the same time.

What happens with new condo owners is that they often take possession of their condo before it’s been registered – which means they don’t officially own it yet. They can live there, but they don’t have ownership. This period is called the occupancy period or interim occupancy and it usually runs from three to six months – but there’s no guarantee as to how long it can last. Registering the property is up to the developer, so the time period is out of the buyer’s hands, unfortunately.

During this limbo period, the buyer is required to pay a ghost mortgage to the developer for the right to live in the condo. This fee is roughly equal to the interest on the amount outstanding on the purchase price.

Once the condo is registered, the buyer takes official ownership and the occupancy period ends. The “real” mortgage kicks in and the buyer begins paying the mortgage company instead of the developer.

While you can’t escape ghost mortgages when buying a new condo, you can research the developer and find out its track record with registering condos. A more experienced developer is more likely to have a shorter occupancy period, thereby reducing the ghost mortgage you’re required to pay. And if you really decide you don’t want to deal with a ghost mortgage, your best bet is to buy a used condo in a building that is already established. You’ll have no occupancy period and from day one, your mortgage payments will be going directly to your mortgage.

Should you buy a new home that’s freshly built and never been lived in before? Or should you buy an older home that’s had a few inhabitants before you? Both options have their pros and cons. Here’s a rundown of some of the biggest for each.

There’s no doubt that buying a new home straight from the developer has lots of advantages. They’re newer, so they’ll likely have state of the art fixtures, flooring and appliances. As well, newly built homes are often under warranty, so if you find any problems in the first few months of living there, the builder is responsible for correcting them. However, these advantages come at a cost – literally. You’ll likely have to pay a premium for those brand new fixtures and appliances and new homes are less negotiable in price; builders are generally reluctant to discount the price because they don’t want to affect future sales of other homes in the development. However, many developers will offer to throw in upgrades – such as upgraded flooring, appliances or fencing – as incentives for you to purchase. They may also offer to cover your closing costs – an obvious advantage.

Another trade-off that comes with buying a brand new house is size. With reducing costs at the front of mind of many companies, newer homes and the lots they’re on are often smaller than their older counterparts. As well, concern about costs may mean that newer homes are lacking the quality that exists in older homes, built back when materials were less expensive. Alternately, older homes may have been high quality for when they were built, but not up to today’s standards – meaning you’ll have to fork out money for upgrades and repairs.

New homes may be an easier option, since they come with all the new amenities and are under warranty, but they’re not for everyone. If you’re looking to find a bargain home or want a home that’s already in an established neighbourhood and has an older character, a new home likely won’t give you what you want.

Are you a handyman (or woman) at heart, the type of person who loves to fix things, to build things and to create things from scratch? If so, you might be considering buying a home that’s a fixer-upper. Buying a home that needs some work can be a great investment. These houses tend to be much cheaper than ones that are in perfect condition, making them ideal for people who are interested in house flipping.

But what if you’re not the type of person who enjoys do-it-yourself repairs? Perhaps you’re looking for a home that’s in tip-top shape or that only needs minimal work. How do you ensure your new home won’t need repairs as soon as the sale goes through?

The good news is that no matter which end of the spectrum you fall on, a home inspection is required before you can purchase a house, so you should know before you buy what you’re in for. The key, however, is determining which repairs you’re willing to tackle and which ones mean walking away altogether.

Your inspector will assess the condition of the home and inform you of what needs to be repaired or replaced immediately, what should be monitored for future repairs and whether the home meets current building standards and regulations. From there, it is up to you to decide whether the repairs reasonably fall within your abilities and/or budget. Some repairs, such as paint touch-ups, drywall repairs and flooring are probably basic enough to handle even if you’re not particularly handy. However, other repairs such as electrical, roofing and foundation repairs can be extremely costly and difficult to do on your own. Determine ahead of time what types of repairs you’re willing to handle before you get tempted by a house that’s in need of more help than you can give. Stay firm in your decision to stay with or walk away from a fixer-upper. Buying a new house is stressful enough; you don’t want to find out after the fact that you’re in over your head in repairs.

Who hasn’t dreamt of building their own house? You can decide exactly how you want everything to look, what you want to include and where you want it to be. And it’s not an impossible dream. There are many people who choose to buy land to build their home on instead of opting for a pre-built house. So if this is something you’re considering, it can be done. Just remember that you’ll need to put in a bit of research beforehand.

For starters, when choosing the location to build your dream home, you’ll need to consider some of the same things as those who opt for pre-built: What’s the community like? Do you want urban or rural living? How close is the property to services such as schools, your place of employment, stores, etc.? Once you’ve chosen the location based on these factors, it is then time to move onto the practicalities of building there.

Building a home means you’ll need to obtain a construction permit and have your plans prepared by an architect. Those plans will also need to be validated by a building inspector, who will ensure that the proposed home complies with building codes, zoning bylaws and other requirements such as access to electricity, water and sewage. The inspector will also consider the municipality’s development plan and assess how your proposed home fits in with those plans.

It’s also a good idea to hire a land surveyor to check for possibility of flooding, erosion and runoff. He or she should also look into land boundaries to ensure the exact dimensions of the property you’re purchasing. Remember that even if there are fences currently up, these might not accurately reflect the legal boundary lines.

Lastly, but perhaps most importantly, you’ll need to consider costs. If you’re planning to build in an undeveloped area, you’ll need to bring utilities such as hydro, phone and water onto the property. How much will it cost to have this done? You’ll also need to assess the costs of hiring an architect to design the home, hiring an inspector and land surveyor to examine the property, purchasing construction permits and insurance and hiring a contractor and other staff to complete the construction.

Once you determine that you have the budget and the land is suitable, celebrate the fact that you’re about to embark on building your very own dream home from the ground up!

You’ve decided to buy a new home. Now it’s time to decide what kind of home you want: Are you in the market for a house or for a condo?

There are numerous factors that come into play when considering which style of home ownership suits you best, but above all, it comes down to personal preference. Are you someone who prefers to call on someone else when you need repairs? Do you hate home maintenance such as shovelling snow, cutting grass and tending gardens? If so you, you’d likely prefer a condo where those things are taken care of for you. Alternately, if you love having a yard and handling your own home maintenance and renovations, then a house would be perfect for you.

Another consideration is space. Condos are obviously much smaller than houses, which can be troublesome if you have plans to expand your family in the near future. Also, if you have pets, you may prefer a larger home with a yard in which you can let them roam free.

You’ll also want to consider privacy. Some people find condos lack a sense of privacy since there’s only a wall separating you from neighbours. As well, while condos often have perks such as party rooms, on-site gyms and patios, these are shared with everyone in the complex. If you prefer your own space that doesn’t require advance booking, a house is a better option.

There’s no question of which is better or worse when it comes to choosing a house or a condo. It’s simply a matter of what suits you, your family and your lifestyle.

A few months ago, the story of a man, Samuel Jacques, who unknowingly bought a house that was a former crime scene made the news. The house was located in Orangeville and was the home of Sonia Varaschin, who went missing and then was tragically found dead last summer. While Varaschin’s death had been all over the news, the Jacques family that purchased her old residence didn’t realize they had bought her home until after the purchase had been made – and after they saw footage of the investigation on the news. “[Jacques] watched images of white-clad forensics officers ducking under yellow crime-scene tape and into what was to become his new home,” reported the Toronto Star.

It’s a horrifying thought, that you could buy a home that had been a crime scene without knowing its history. And it raises an interesting question – what rights do you have as a buyer to know about your new home’s past?

Officially, real estate agents in Ontario are required to disclose “any material fact about a property or its history they are aware of that could affect a person’s decision to buy,” according to the Real Estate Council of Ontario. But there’s debate on whether that rule applies to properties that have an ugly past – or have been stigmatized – which doesn’t technically affect the actual material nature of the home. Essentially, it comes down to the agent’s personal opinion as to whether such information needs to be disclosed.

Is this right? Should the regulations be changed? It’s a tough question, but one that’s likely to be considered more closely in the wake of this incident. Quebec currently has a law regarding the disclosure of a murder on a property that’s for sale, but Ontario remains unclear. And while the odds of buying a home with such a dark history are relatively slim, if you’re concerned, it’s best to ask your agent directly. Even if the law is fuzzy on this matter, he or she is ethically required to answer your questions honestly and accurately.

When you buy a new home, there’s more to consider than just the asking price. You need to consider both closing costs (legal and administrative fees that are associated with buying a home) and utility set-up fees.

We’ve touched on some of the most common closing costs in previous blog posts (see Understanding Real Estate Fees), such as legal fees, appraisal fees, land transfer taxes and inspection fees.

However, there are costs beyond those that you’ll need to consider when setting up a mortgage and moving into your home.

One of the additional costs you’ll need to bear is insurance fees. Many lenders require insurance, which you will pay to Genworth Financial or the Canada Mortgage and Housing Corporation. Generally, mortgage insurance is between 0.5 percent and 3 percent of the amount of the mortgage that is being insured. As well, you’ll need to consider fire and liability insurance, which is also a requirement for many lenders.

Your lender may also require you to pay for a survey, in order to ensure that the home meets bylaw requirements and so that the lender knows the exact dimensions of the property.

Once all the closing costs have been taken care of, there are also utility costs, moving fees (if you’re hiring a moving company) and renovation, repair and redecorating costs. You need to consider all of these when pricing your home – and determining what you can afford. How much will it cost to set up your gas or electricity, water, cable, Internet, phone, etc.? If possible, look into package deals for your Internet, phone and cable in order to minimize costs.

Lastly, remember to set up your utilities well before you move, so that you’ll have access to everything right from the day you move in.

Bylaws are laws that apply to certain areas, such as a specific city, county, etc., but not on a national or provincial level. Bylaws are regulated by municipal governments or local councils, but that doesn’t mean they’re less important than national or provincial laws. Bylaws are enforceable by penalties and, in come cases, violation of a bylaw can be considered a criminal offence. As such, it’s important when moving to a new city or area that you know the bylaws for your neighbourhood.

While there are numerous bylaws for different offences, some the most common ones concern vehicle parking, animal control, noise, construction, landscaping and physical appearance of your property.

Vehicle parking

Many communities have rules regarding when you can park on the street. For example, there may be seasonal rules (such as having to be off the road by a certain time in the winter months) or alternating days for each side of the street.

Animal control

If you have a pet, you’ll want to make note of any animal-related bylaws in your new community. This could include noise laws, leash laws (some municipalities require even cats to be on leashes), licensing requirements and rules regarding possession of exotic pets or animals not normally found in residential neighbourhoods (such as chickens or horses).

Construction

If you plan to add an extension onto your home or build a shed or other shelter on your property, you’ll need to check for any building bylaws. You’ll need a permit and your design may have to meet certain criteria.

Landscaping

Your new community may have requirements regarding what types of trees you’re allowed to plant or, if there’s already a tree there, whether you can take it down, replace it or trim it.

Curb appearance

Similarly, there may be rules forbidding homes that appear rundown or neglected. Broken windows, scattered garbage and debris, dilapidated vehicles, grass that’s too long and graffiti are all common bylaw violations.

Bylaws are intended to keep a community safe, clean and liveable for everyone there. Learning the rules of your new neighbourhood will help you settle in perfectly.

A key consideration when buying a home is deciding how long you plan to live there. Is this a starter home to get you going in your early years of home ownership? Or is this your dream home, the place where you want to raise your family and eventually retire?

When you’re first starting out, you likely want a home that’s affordable and requires relatively little maintenance. You’re just getting your feet wet in property ownership, so you’re probably not looking at a major fixer-upper. However, consider how long you can stay in this starter home. If it’s only a two-bedroom and you’re planning to start a family soon, you’ll probably need to find another home relatively soon. If, on the other hand, you have several years ahead of you before you start your family, a small home may be the perfect size.

Once you decide that you want a family home, you’ll have to find one that can handle your growing brood. Consider how many bedrooms you’ll need, whether you want a playroom and how big of a yard you’d like for your children and pets. If you consider all these in the early stages of your family, you shouldn’t have to worry about moving later on as the children arrive.

Lastly, if you’re looking for a home that can take you into retirement, you’ll want to consider how well your home will accommodate you as you age. That’s not to say you need to start looking at homes with assistance handles or ramps when you’re still young, but you will want to think about the maintenance that needs to go into it, how big the house is, how far it is from public transit, where the nearest grocery store or bank is, etc. By choosing a home that’s easily accessible and easy to maintain, you should be able to stay in it long into your golden years.

It’s sometimes easy to forget how drastic our seasons are here in Ontario. In the humid heat of summer, the snow and ice of winter can feel like a distant memory, while in the middle of a chilly February, it can feel like summer never existed.

When you’re buying a home, it’s important to keep these drastic seasonal changes in mind. For example, that long, steep driveway that looks so lovely in the fall might not be so pleasant when you have to shovel it or drive down it in the winter. Or perhaps you didn’t notice the lack of trees when you bought the house in the winter months, but come summer you’re desperate for a bit of shade in your yard.

When buying a house, consider how it will look – and how much work you’ll have to put into it – in each of the seasons. A piece of property that’s low lying or near wetlands may end up flooded in the spring, or a house that’s surrounded by forest may be a mosquito or black fly haven in the summer.

You should also examine the state of the home. Are the windows well insulated for chilly winter nights? Is there proper circulation for sticky summer afternoons? How sturdy is the roof – will it leak during heavy rainfalls or after the first blizzard of the season?

Of course, you won’t be able to find a home that’s protected against all the elements all year long, but keeping the seasons in mind when you’re shopping will help you make a better, more informed decision.