Vacation Homes

The number of Canadians investing in vacation properties is on the rise. Many people are looking to invest in a second home for a variety of reasons, including relaxation, wealth-building opportunities, and creating cherished family moments.

Fortunately, there are accessible mortgages available with low rates specifically designed for vacation properties, even if they are non-winterized or in remote locations. This means that Canadians can find the best mortgage options for various purposes, whether they are looking to purchase a lake cottage for summer getaways or a housing option for their college-aged children.

It is important to note that lending criteria for second or third homes differ from those for primary residences. Depending on the category of the vacation or secondary home, different down payment requirements may apply. While some properties may only require a minimum down payment of 5% or 10%, others, especially certain types of cottages, may require a higher down payment of 20% or more. The categorization of properties and their associated treatment by lenders can impact the rates and terms of the mortgage.

When considering mortgage options, the type of property is also important. Properties can be categorized as either year-round accessible or seasonal. This classification will have an impact on the mortgage options available.

To help facilitate the purchase of a vacation property, there are innovative tools available in Canada that streamline processes and ensure accuracy. These tools can assist with incorporating down payments through mortgage refinancing, a home equity line of credit (HELOC), or even a reverse mortgage.

If you are interested in investing in a vacation property and would like more information or a quick mortgage pre-approval process, it is recommended to reach out to a mortgage professional. They can provide complete information about the different mortgage options available and guide you through the process.

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