The number of Canadians investing in vacation properties is on the rise. Many people are choosing to invest in a second property for various reasons such as relaxation, wealth-building, and creating memorable moments with their families.

One of the main reasons why people are able to invest in vacation properties is due to accessible mortgages with low rates. Even properties that are non-winterized or located in remote areas can qualify for these mortgages. Whether you're looking for a lake cottage or a housing option for your college-aged child, there are mortgage options available to suit your needs.

It's important to note that the lending criteria for second or third homes are different compared to primary residences. Depending on the category of the vacation or secondary home, the down payment requirements can vary. Some properties may require a minimum down payment of 5% or 10%, while others may require 20% or higher. Lenders categorize these properties differently and provide different treatment based on the category.

Moreover, different types of cottages have different requirements. Certain types of cottages may require a higher down payment and may receive higher interest rates. The mortgage options available to you will depend on the type of property you are considering, whether it is categorized as year-round accessible or seasonal.

If you already own a property and are considering investing in a vacation property, there are options for incorporating your down payment. This can be done through mortgage refinancing, a Home Equity Line of Credit (HELOC), or a reverse mortgage.

In Canada, there are innovative tools available to streamline the mortgage process and ensure accuracy. If you're interested in learning more about vacation property mortgages and would like to begin the pre-approval process, reach out for complete information and a quick response.