Oakville houses with basement apartments

An apartment in an Oakville basement can sit in three positions. It may have been built under a building permit as a second unit, inspected and registered with the town, in which case expect the seller to hand over the permit, the closing inspection report and the town's registration confirmation. It may be an older finished basement with a kitchen that predates the current rules, which the town may or may not accept without upgrades. Or it may be a recent conversion done without permits. Ask directly, and put the answer in the agreement. The physical tells are a second exit or a fire-rated door, smoke alarms wired together on each level, a separate heat source or a fire-rated furnace room, egress windows of the right size, and an electrical safety certificate for any new panel or wiring.

A lender will usually count some part of the rent from a legal second unit toward your qualifying income, but only with documentation, so the unit's status has a cash value at the mortgage stage as well as at resale. Insurers ask the same question and may decline to cover a unit built without permits. Property taxes are assessed on the house, not the unit, though a large addition can trigger reassessment. If the unit is occupied, the tenancy passes to you under Ontario's tenancy legislation, with the existing rent and the tenant's rights intact, so read the lease and ask for the rent ledger. If it is vacant, plan for a lease, a proper unit inspection and separate utility metering where possible.