The number of Canadians investing in vacation properties is on the rise. More and more people are recognizing the benefits of owning a getaway home for relaxation, wealth-building, and quality family moments. And the good news is that accessing mortgages for vacation properties has become easier, with low interest rates being offered even for non-winterized or remote locations.

Regardless of the purpose of your vacation property, whether it is a lake cottage or a housing option for college, there are different lending criteria that apply to second or third homes compared to primary residences. It's important to understand these differences in order to make an informed decision.

When it comes to down payments, some vacation and secondary homes may qualify for a minimum of 5% or 10% down payment. However, certain categories of vacation and secondary homes will require a higher down payment of 20% or more. These homes are categorized differently and receive different treatment from lenders.

Moreover, the requirements for different types of cottages can vary. Certain types of cottages may require a higher down payment and receive higher interest rates. It's crucial to consider these factors when choosing the right mortgage option for your vacation property.

In terms of property type, mortgages options depend on whether the property is categorized as year-round accessible or seasonal. This classification can affect the terms and conditions of the mortgage.

If you're looking to incorporate your down payment, there are various options available such as mortgage refinancing, HELOC (Home Equity Line of Credit), or reverse mortgage. These innovative tools can help streamline the process and ensure accuracy.

If you're interested in purchasing a vacation property and would like more information, reach out to us for a complete understanding of the mortgage options available to you. Our quick mortgage pre-approval process can help you start your journey toward owning a dream vacation property.