5 costly mistakes cottage buyers make

Buying a cottage is not like buying a house in the city. The services are private, the rules change from one township to the next, and the things that matter most are often outside the building. These are the five mistakes that cost buyers the most. Each one can be avoided with a phone call, a document or a condition in the offer.

1. Skipping the septic and water checks

A standard home inspection does not open the septic tank or test the water. Buyers who rely on it alone are guessing about the two most expensive systems on the property.

A leaching bed that has failed has to be replaced, with a permit, under the Ontario Building Code.

Do this instead:

• Ask the township, health unit or conservation authority for the septic use permit. Compare its bedroom count to the cottage.
• Make the offer conditional on a septic inspection with a pump-out.
• Test the water for bacteria. Public Health Ontario does this at no charge for private water supplies.
• Run a flow test on a well, and ask when the filters and UV lamp were last changed on a lake system.

The details are in our guide to septic systems, wells and lake water.

2. Not confirming road access and ownership

A driveway that reaches the cottage does not prove you have a legal right to use it. Many cottages are reached by private roads that cross other people's land. Others are on municipal roads that are only maintained in summer.

Road status affects winter use, insurance, emergency response and your mortgage. Lenders and mortgage insurers generally want year-round access on a publicly maintained road, or a private road with a maintenance contract, before they treat a cottage like a normal home.

Do this instead:

• Have your lawyer confirm a registered right of way from the lot to a public road.
• Ask the township if the road is maintained year-round, seasonally or not at all.
• Ask for the road association's fees, agreement and plowing contract.
• Check the survey for the lot lines and for the shore road allowance. If the allowance along the water was never bought from the township, part of the cottage or boathouse may sit on land the seller does not own.

3. Assuming you can rent it out or rebuild near the water

These are two versions of the same mistake: assuming that what the current owner does, you can do too.

Renting. Many cottage-country municipalities now license short-term rentals, including Muskoka Lakes, Huntsville, Gravenhurst, Kawartha Lakes and the townships of Haliburton County. Licences can be capped, may not transfer to a new owner, and usually limit guests to what the septic system can handle. Under federal tax rules in force since 2024, an owner who rents without a required licence cannot deduct rental expenses for that period.

Rebuilding. An old cottage that sits a few steps from the water was likely built before current setback rules. Zoning often calls it legal non-conforming. It can usually stay and be repaired. Tearing it down and building something larger in the same spot is a different matter. New work generally has to meet today's rules for distance from the water, lot coverage, height and septic. A conservation authority or Parks Canada may also be involved.

Do this instead: call the township planning office with the address before you offer. Ask what the zoning allows, what a rebuild would need and what the rental rules are. Read renting out your cottage for the full checklist.

4. Underestimating carrying costs

The mortgage payment is only part of the cost of owning a cottage. Buyers who budget for the payment alone often find themselves stretched by the second summer.

Put real numbers beside each of these before you offer:

• Property tax, which is often higher on waterfront
• Insurance, which can cost more for a seasonal or wood-heated cottage
• Hydro, propane or oil, including heat through the winter if you keep it open
• Road association fees and snow plowing
• Septic pump-outs, water filters and UV lamps
• Opening and closing, dock installation and removal
• Dock, roof, deck and shoreline repairs over time

Ask the seller for a year of bills. Do not count on rental income to close the gap unless you have confirmed the licence.

5. Buying the cottage and not the lake

You can renovate a cottage. You cannot renovate a lake. Buyers who shop by kitchen and bedroom count sometimes end up on water that does not suit how they want to spend their time.

Look at the lake first:

• Size and boating. A big lake suits water skiing and long cruises. A small lake may be quieter and may restrict motors.
• Shoreline. Sand, rock, weeds or wetland, and how deep it is off the dock.
• Exposure. Afternoon sun and sunsets, or shade by mid-afternoon.
• Water levels. Some dam-controlled lakes drop noticeably by late summer.
• Water quality. Read the lake association's reports and ask about algae blooms.
• The drive. Time it on a Friday afternoon in July, not on a Tuesday in March.

A modest cottage on the right lake and the right shoreline tends to be easier to love and easier to sell. Start with Waterfront 101, then browse by lake. The Ontario Cottage Buyers Guide puts every step in order.