An increasing number of Canadians are choosing to invest in vacation properties for a variety of reasons, including relaxation, wealth-building, and family bonding. Accessible mortgages with low rates are available for vacation properties, even for those that are non-winterized or located in remote areas. Whether you are looking to purchase a lake cottage for weekend getaways or a property near a college for housing options, there are mortgage options to suit your needs.

When it comes to financing vacation properties, different lending criteria apply compared to primary residences. While some vacation and secondary homes may qualify for a minimum down payment of 5% or 10%, others may require a down payment of 20% or higher. These properties are categorized differently and receive different treatment from lenders. Additionally, certain types of cottages may require a higher down payment and receive higher interest rates.

The type of mortgage options available for vacation properties will depend on the property type, whether it is categorized as year-round accessible or seasonal. Down payments can be incorporated into the mortgage through methods such as mortgage refinancing, a Home Equity Line of Credit (HELOC), or a reverse mortgage. In Canada, there are innovative tools available to streamline the mortgage application process and ensure accuracy.

For those interested in purchasing a vacation property, it is important to reach out to a mortgage lender for complete information and a quick pre-approval process. By understanding the lending criteria and mortgage options available for different types of vacation properties, Canadians can make informed decisions when investing in their dream getaway home.