There is a growing trend in Canada of individuals investing in vacation properties for various reasons such as relaxation, wealth-building, and creating family memories. Accessible mortgages with low rates are available for vacation properties, including those that are non-winterized or located in remote areas. Whether you are looking to purchase a lake cottage or a property for college housing, there are options to find the best mortgage to suit your needs.

It is important to note that different lending criteria apply to second or third homes compared to primary residences. While some vacation and secondary homes may qualify for a minimum down payment of 5% or 10%, certain categories of properties will require a down payment of 20% or even higher. These properties are categorized differently and receive different treatment from lenders, based on the type of property and the associated risks.

Different types of cottages may also have varying requirements, with some necessitating a higher down payment and receiving higher interest rates. Mortgage options for vacation properties depend on the property type, whether it is categorized as year-round accessible or seasonal. Additionally, down payments for these properties can be incorporated through methods such as mortgage refinancing, a HELOC, or a reverse mortgage.

In Canada, there are innovative tools available to streamline the mortgage application process and ensure accuracy. If you are considering purchasing a vacation property, it is recommended to reach out for complete information and to undergo a quick mortgage pre-approval process to assess your options.