Vacation Homes

The number of Canadians investing in vacation properties is on the rise. These properties are seen as a way to not only relax and enjoy some time away, but also as a way to build wealth and create lasting family moments. Fortunately, mortgages for vacation properties are now more accessible, even for non-winterized or remote locations, and often come with low interest rates.

When considering a vacation property, it is important to understand that the lending criteria for second or third homes differ from those of primary residences. Some vacation and secondary homes may qualify for a minimum down payment of 5% or 10%, while others may require a higher down payment of 20% or more. This is due to the fact that vacation and secondary homes are categorized differently by lenders and receive different treatment.

Additionally, different types of vacation properties have different requirements. For example, certain types of cottages may require a higher down payment and result in higher interest rates. It is important to carefully consider the type of property you are interested in and the associated mortgage options.

Fortunately, there are various options for incorporating down payments when purchasing a vacation property. These can include mortgage refinancing, a home equity line of credit (HELOC), or even a reverse mortgage.

In Canada, there are innovative tools available to streamline the mortgage process and ensure accuracy. This can help make the entire process smoother and more efficient. If you are interested in purchasing a vacation property and would like complete information and a quick mortgage pre-approval process, reach out to a mortgage professional for assistance.

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