The number of Canadians who are choosing to invest in vacation properties is steadily increasing. These individuals are recognizing the benefits that come with owning a getaway home, including the opportunity for relaxation, the potential for wealth-building, and the ability to create lasting family moments.

One of the reasons why more Canadians are able to invest in vacation properties is the accessibility of mortgages with low interest rates. Even properties that are not winterized or located in remote areas can qualify for these favorable mortgage options. This means that individuals can find the best mortgage for their specific needs, whether they are looking to purchase a lake cottage for weekend getaways or a housing option for their college-aged children.

It's important to note that there are different lending criteria for second or third homes compared to primary residences. While some vacation and secondary homes may qualify for a minimum down payment of 5% or 10%, others, especially certain categories of vacation and secondary homes, will require a down payment of 20% or higher. This distinction is made by lenders based on the categorization of the property and it influences the treatment the property receives.

Furthermore, the requirements for purchasing different types of cottages can also vary. Certain types of cottages may require a higher down payment and may be subject to higher interest rates. This is something that potential buyers should be aware of when considering their options.

When it comes to mortgage options, they are dependent on the type of property being purchased. Properties that are categorized as year-round accessible or seasonal will have different mortgage options available to buyers.

For those interested in purchasing a vacation property but lacking the necessary funds for a down payment, there are various ways to incorporate down payments into the mortgage. Options include mortgage refinancing, where the existing mortgage is adjusted to provide additional funds for the down payment, as well as home equity lines of credit (HELOC) and reverse mortgages.

In Canada, there are innovative tools available to streamline the mortgage process and ensure accuracy. These tools can help make the process of obtaining a mortgage for a vacation property easier and more efficient.

If you're considering investing in a vacation property, it is recommended that you reach out for complete information and take advantage of the quick mortgage pre-approval process. This will ensure that you have all the necessary information and resources to make an informed decision about your investment.