The trend of Canadians investing in vacation properties is on the rise. More and more people are recognizing the benefits of owning a getaway home for relaxation, wealth-building, and creating special family moments. Fortunately, the accessibility of mortgages with low rates for vacation properties has made it easier for Canadians to fulfill this dream, even if the property is non-winterized or located in a remote area.

Different lending criteria are applied to second or third homes compared to primary residences. For certain categories of vacation and secondary homes, a minimum down payment of 5% or 10% may be required, while others may require 20% or more. These homes are categorized differently and receive different treatment from lenders. It is important to understand the specific requirements based on the type of cottage or property you are interested in. Some cottage types may necessitate a higher down payment and attract higher rates.

The availability of mortgage options also depends on the property type, which is categorized as either year-round accessible or seasonal. Depending on the type of property, there are various options to incorporate down payments. These can be done through mortgage refinancing, a Home Equity Line of Credit (HELOC), or even a reverse mortgage.

In Canada, there are innovative tools and resources available to streamline the mortgage application process and ensure accuracy. These tools can help you navigate through the various requirements and options that are specific to vacation properties.

If you are interested in investing in a vacation property, it is recommended to reach out for complete information and to participate in a quick mortgage pre-approval process. This will provide you with a clearer understanding of the options available to you and help you make an informed decision about your vacation property investment.