An increasing number of Canadians are choosing to invest in vacation properties, motivated by the appeal of having a personal retreat for relaxation, building long-term wealth, and creating cherished family memories. Whether it’s a serene lake cottage or a convenient college housing option, these getaway homes offer diverse benefits for different lifestyles and financial goals.

Mortgage options for vacation properties have become more accessible, with attractive low rates available even for homes located in remote areas or those that are not winterized. However, lending criteria for second or third homes differ significantly from those applied to primary residences. Depending on the type of vacation property, down payment requirements can vary. Some vacation and secondary homes may qualify with as little as 5% or 10% down, while others—especially certain types of cottages—often require 20% or more. This is because lenders categorize these properties differently, affecting both the qualifying criteria and interest rates.

Mortgage solutions also depend on whether the property is accessible year-round or only seasonally. To help with down payments, homeowners can explore options such as mortgage refinancing, a home equity line of credit (HELOC), or a reverse mortgage. Additionally, Canada now offers innovative tools that streamline the mortgage process, providing accuracy and efficiency. For those interested, professional guidance is available to provide comprehensive information and help secure a quick mortgage pre-approval.