The trend of Canadians investing in vacation properties is on the rise. People are recognizing the benefits of owning a getaway home for relaxation, as well as for wealth-building and creating special family moments.

One of the reasons for this surge in vacation property investments is the availability of accessible mortgages with low rates. Even properties in non-winterized or remote locations can be financed through these mortgages. Whether you are looking for a cozy lake cottage or a housing option for your college-going children, there are mortgage options that cater to different purposes.

It is important to note that lending criteria for second or third homes differ from those for primary residences. While some vacation or secondary homes may qualify for a minimum down payment of 5% or 10%, certain categories of properties require a higher down payment of 20% or more. Lenders categorize these properties differently and provide different treatment when it comes to mortgage terms.

Moreover, different types of cottages also have different requirements. Some may require a higher down payment and may come with higher interest rates. The categorization of properties as either year-round accessible or seasonal also affects the available mortgage options.

To finance the down payment for a vacation property, there are various options such as mortgage refinancing, Home Equity Line of Credit (HELOC), or even a reverse mortgage. These innovative tools can help homeowners incorporate their down payments into their mortgage plans.

If you are considering investing in a vacation property, Canada offers innovative tools and processes to streamline the mortgage application and approval process. By reaching out for complete information, you can ensure a quick and efficient mortgage pre-approval process, helping you to secure your dream vacation property.