Monday, June 26, 2017 15:26

Second / Vacation Home

Changing lifestyles of Canadians affect where they own property. Whether it be a second home for your children while away at school or a cottage property in the woods, you can own a second home with as little as 5% down.

Unlike rental properties which require a minimum of 20% down payment, second homes must be
intended for occupancy at some point during the year by a borrower; or a relative of
the borrower on a rent-free basis.

As a result you are able to with mortgage default insurance purchase one of these properties with as little as 5% down.

If you are interested in purchasing a cottage be mindful of the following.

  • The property can be located anywhere in Canada and must be suitable for, and
    available for, year-round occupancy.
  • Properties that are constructed for seasonal use, or have seasonal access, are not
    eligible.
  • Properties located on an island must have year-round bridge or ferry access.
  • Time-share interests, life leases and properties in rental pools are not eligible.

Note that lenders will also have additional requirements for cottage properties so before putting in an offer to purchase make sure you speak to us to determine if the property qualifies under this program.

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