An increasing number of Canadians are choosing to invest in vacation properties. These properties offer the opportunity for relaxation, wealth-building, and precious family moments. One of the reasons behind this trend is the accessibility of mortgages with low rates for vacation properties, even in non-winterized or remote locations.

When it comes to finding the best mortgage for a vacation property, there are different lending criteria compared to primary residences. Depending on the type of property, different down payment percentages are required. Some vacation and secondary homes may only require a minimum down payment of 5% or 10%, while others may require 20% or more. This categorization and differentiation by lenders is based on the type of property and can also result in different interest rates.

Not all types of cottages or vacation homes are treated the same by lenders. Certain types may require a higher down payment and receive higher interest rates. It is important to understand the specific requirements for the type of property you are interested in.

In terms of mortgage options, they depend on the type of property. Some properties are categorized as year-round accessible, while others are seasonal. The mortgage options available to you will be based on this classification.

For those who already own a home and are looking to invest in a vacation property, there are options to incorporate down payments through mortgage refinancing, a Home Equity Line of Credit (HELOC), or even a reverse mortgage. These tools can help make the purchasing process more manageable.

In Canada, there are innovative tools available to streamline the mortgage process and ensure accuracy. If you are interested in investing in a vacation property, it is recommended to reach out for complete information and take advantage of a quick mortgage pre-approval process. This will help you understand your options and determine the best course of action for your specific circumstances.