An increasing number of Canadians are choosing to invest in vacation properties, seeing them as not only a source of relaxation but also as a means of building wealth and creating lasting family memories. Fortunately, accessing mortgages for these vacation properties has become easier, with low rates even available for non-winterized or remote locations.

When searching for a mortgage for a vacation property, it is important to consider different lending criteria that apply to second or third homes compared to primary residences. The down payment requirements can vary depending on the type of vacation property. While some vacation and secondary homes can qualify for a minimum down payment of 5% or 10%, certain categories of vacation and secondary homes will require a higher down payment of 20% or more. These properties are categorized differently and receive different treatment from lenders.

It is also important to note that different types of cottages have different requirements. Some types of cottages may require a higher down payment and may receive higher interest rates. This is something to keep in mind when considering purchasing a cottage as a vacation property.

The mortgage options available to you will depend on the property type, which is categorized as either year-round accessible or seasonal. Depending on your specific needs and the type of property you are interested in, there are various ways to incorporate down payments. Some options include mortgage refinancing, a home equity line of credit (HELOC), or a reverse mortgage.

In Canada, there are innovative tools available that can streamline the mortgage process and ensure accuracy. By reaching out to mortgage professionals, you can receive complete information and a quick mortgage pre-approval process. They can guide you through the various options and help you find the best mortgage for your specific vacation property needs.