The number of Canadians investing in vacation properties has been on the rise. Many individuals are choosing to invest in a getaway home for various reasons such as relaxation, wealth-building, and creating family memories.

One of the factors that have contributed to this increase is the accessibility of mortgages with low rates for vacation properties, even in non-winterized or remote locations. This means that individuals can now easily finance their dream vacation home without having to pay exorbitant interest rates.

Furthermore, finding the best mortgage for different purposes, whether it be a lake cottage or a housing option near a college, is now easier than ever. However, it is important to note that the lending criteria for second or third homes are different compared to primary residences.

When it comes to down payments, the requirements vary depending on the type of vacation or secondary home. While some properties may qualify for a minimum down payment of 5% or 10%, others may require 20% or even higher. These different categories of properties are treated differently by lenders, and as a result, may have different down payment requirements and interest rates.

Another factor to consider when choosing a mortgage option for a vacation property is the type of property itself. Properties can be categorized as either year-round accessible or seasonal, and this will affect the available mortgage options.

For those looking to incorporate their down payments into their mortgage, there are several options available such as mortgage refinancing, a Home Equity Line of Credit (HELOC), or a reverse mortgage. These innovative tools in Canada make the mortgage process streamlined and accurate.

If you are interested in purchasing a vacation property and would like more information or a quick mortgage pre-approval process, reach out to a professional who can provide you with complete details and assist you with the necessary steps.