An increasing number of Canadians are choosing to invest in vacation properties for a variety of reasons such as relaxation, wealth-building, and quality family time. They are taking advantage of accessible mortgages with low rates, even for properties that are non-winterized or in remote locations. These mortgages are tailored to suit different purposes, whether it be purchasing a lake cottage for summer getaways or a property near a college for student housing.

When it comes to financing vacation properties, different lending criteria apply compared to primary residences. While some vacation and secondary homes may qualify for a minimum down payment of 5% or 10%, others may require a higher down payment of 20% or more. Such properties are categorized differently and receive different treatment from lenders, depending on factors such as the type of property and its accessibility throughout the year. Some types of cottages may also require a higher down payment and receive higher interest rates.

Home buyers have various mortgage options available, depending on the type of property they are interested in. They can incorporate down payments 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 application process and ensure accuracy. For potential buyers looking for more information and a quick mortgage pre-approval process, reaching out to professionals in the field is recommended.