The number of Canadians investing in vacation properties is on the rise. People are seeing the benefits of having a getaway home for relaxation, as well as for wealth-building and creating family moments. It is becoming easier to finance these vacation properties, with accessible mortgages offering low rates, even for non-winterized or remote locations.

Different lending criteria apply to second or third homes compared to primary residences. This means that when looking for a mortgage for a vacation property, it is important to consider the specific requirements for that type of property. Some vacation and secondary homes may qualify for a minimum down payment of 5% or 10%, while others may require 20% or more. The categorization of the property will determine the down payment requirement and the treatment it receives from lenders.

It's worth noting that different types of cottages also have different requirements. Certain types of cottages may require a higher down payment and may also receive higher interest rates. When considering a mortgage for a vacation property, it is important to understand the specific requirements and rates associated with that type of property.

The mortgage options available for vacation properties depend on the property type, whether it is classified as year-round accessible or seasonal. This classification will determine the mortgage options that are available.

In addition to traditional down payments, there are also other ways to incorporate down payments for vacation properties. These can include methods such as mortgage refinancing, a Home Equity Line of Credit (HELOC), or even a reverse mortgage.

Luckily, there are innovative tools available in Canada that can streamline the mortgage process and ensure accuracy. These tools can help with finding the best mortgage for various purposes, such as a lake cottage or a housing option for college.

If you are interested in purchasing a vacation property and would like more information and a quick pre-approval process for a mortgage, reach out for complete details.