More and more Canadians are recognizing the benefits of investing in vacation properties. These getaway homes provide opportunities for relaxation, wealth-building, and creating cherished family moments. And the good news is that accessing mortgages for vacation properties has become increasingly easier, even for properties that are non-winterized or located in remote areas.

When it comes to financing these vacation properties, there are different lending criteria that apply compared to primary residences. Depending on the type of vacation or secondary home, different down payment requirements may apply. While some properties may qualify for a minimum of 5% or 10% down payment, others, particularly certain categories of vacation and secondary homes, will require a higher down payment, typically 20% or more. Lenders categorize these properties differently and therefore treat them differently in terms of financing options.

Furthermore, different types of cottages may also have varying requirements. Some types of cottages may require a higher down payment and may also receive higher interest rates. It is important to understand the specific requirements for the type of cottage you are interested in before proceeding with the mortgage process.

The availability of mortgage options also depends on the classification of the property. Properties are typically categorized as either year-round accessible or seasonal. The classification will determine the mortgage options available to you.

In addition to traditional financing methods, there are also innovative tools available in Canada to help streamline the mortgage process and ensure accuracy. These tools can assist in incorporating down payments through methods such as mortgage refinancing, a home equity line of credit (HELOC), or even a reverse mortgage.

For those interested in exploring vacation property financing further, it is recommended to reach out for complete information and undergo a quick mortgage pre-approval process. This will provide a clearer understanding of the options available and the specific requirements that need to be met in order to secure a mortgage for a vacation property.