The number of Canadians investing in vacation properties has been on the rise. Many people are choosing to invest in a getaway home for various reasons such as relaxation, wealth-building, and spending quality time with family. Owning a vacation property allows individuals to escape from their daily routines and enjoy a peaceful retreat.

One of the reasons why more people are able to invest in vacation properties is because of accessible mortgages with low rates. Even properties that are non-winterized or located in remote areas can qualify for these mortgages. This means that individuals are not restricted to specific locations when looking for a vacation property.

When it comes to obtaining a mortgage for a vacation property, different lending criteria apply compared to primary residences. Second or third homes require different considerations and may have different down payment requirements. While some vacation and secondary homes can be purchased with a minimum down payment of 5% or 10%, others may require a down payment of 20% or higher. Lenders categorize these properties differently, which affects the treatment and requirements associated with them.

Furthermore, the type of property also influences the mortgage options available. Properties can be categorized as year-round accessible or seasonal, and this classification determines the mortgage options that are offered. Additionally, certain types of cottages may require a higher down payment and may come with higher interest rates.

For those who already own a property and want to incorporate their down payment, there are options such as mortgage refinancing, a Home Equity Line of Credit (HELOC), or a reverse mortgage. These methods allow individuals to utilize the equity in their existing property to finance the down payment for a vacation property.

In Canada, there are also innovative tools available to streamline the mortgage process and ensure accuracy. These tools help individuals navigate through the mortgage application process and provide them with the necessary information for a smooth experience.

For anyone interested in investing in a vacation property, it is recommended to reach out for more information and to undergo a quick mortgage pre-approval process. This will provide a clear understanding of the available options and help individuals make informed decisions about their vacation property investment.