The number of Canadians investing in vacation properties has been steadily increasing. These properties provide individuals with the opportunity to have a getaway home that offers relaxation, the potential for wealth-building, and unforgettable family moments. The good news is that accessible mortgages with low rates are available for vacation properties, even for those that are non-winterized or located in remote areas.

When it comes to finding the best mortgage for a vacation property, whether it be a cozy lake cottage or a housing option for college, it is important to note that different lending criteria apply to second or third homes compared to primary residences. Some vacation and secondary homes may qualify for a minimum down payment of 5% or 10%, but certain categories of vacation and secondary homes will require a higher down payment, often 20% or more. These homes are categorized differently and receive different treatment from lenders.

It's also worth mentioning that different requirements exist for different types of cottages. Some types of cottages will require a higher down payment and may receive higher interest rates. These requirements depend on whether the property is categorized as year-round accessible or seasonal.

Fortunately, there are several options for incorporating down payments into the mortgage process. This can be done through 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. By reaching out to a mortgage provider, individuals can obtain complete information and go through a quick pre-approval process. This allows potential buyers to be well-informed and prepared when it comes to purchasing their dream vacation property.