The number of Canadians investing in vacation properties is on the rise. People are realizing the benefits of owning a getaway home for various reasons, such as relaxation, wealth-building, and creating special family moments. Fortunately, there are accessible mortgage options available with low rates specifically designed for vacation properties, even those that are non-winterized or located in remote areas.

When it comes to finding the right mortgage for a vacation property, there are different lending criteria compared to primary residences. Second or third homes have their own set of requirements. While some vacation and secondary homes may qualify for a minimum down payment of 5% or 10%, certain categories of these properties will require a down payment of 20% or higher. Lenders categorize these homes differently and provide different treatment accordingly.

Furthermore, the requirements for different types of cottages vary. Some types of cottages may require a higher down payment and can also come with higher interest rates. The availability of mortgage options also depends on whether the property is categorized as year-round accessible or seasonal.

If you're interested in investing in a vacation property but don't have enough funds for a down payment, there are opportunities to incorporate down payments through methods such as mortgage refinancing, a Home Equity Line of Credit (HELOC), or even a reverse mortgage.

In Canada, there are innovative tools available to streamline the mortgage process and ensure accuracy. It is recommended to reach out to professionals in the field to gather complete information and undergo a quick mortgage pre-approval process. This way, you can make an informed decision and secure the best mortgage option for your specific needs and desired vacation property.