The number of Canadians investing in vacation properties is on the rise. People are seeing the benefits of having a getaway home for relaxation, wealth-building, and creating lasting memories with their families.

One of the reasons more Canadians are able to invest in vacation properties is because of the accessibility of mortgages with low rates. This applies to properties that are either non-winterized or located in remote areas. Whether you're looking for a lake cottage or a housing option for your college-aged child, there are options available to suit your needs.

However, it's important to note that the lending criteria for second or third homes differ from those for primary residences. Depending on the type of vacation or secondary home you're interested in, you may be able to make a down payment as low as 5% or 10%. However, certain categories of vacation homes may require a down payment of 20% or more. These homes are categorized differently and are treated differently by lenders.

Furthermore, different requirements and rates apply to different types of cottages. Some types of cottages may require a higher down payment and may come with higher interest rates. It's important to understand these distinctions when considering a vacation property.

When it comes to mortgage options, they are dependent on the type of property you're interested in. Properties that are accessible year-round may have different mortgage options compared to seasonal properties.

If you're looking to incorporate your down payment into your mortgage, there are a few options available, such as mortgage refinancing, a home equity line of credit (HELOC), or a reverse mortgage.

Fortunately, there are innovative tools available in Canada that streamline the mortgage process and ensure accuracy. If you're interested in investing in a vacation property, it's best to reach out for complete information and engage in a quick mortgage pre-approval process.