Whether it is to get away to the cottage, a need to be closer to your job, or sending the kids to University – buying a Second Home is becoming increasing popular and is VERY similar to the purchase of your Principle Residence.

The minimum down payment remains 5% of the purchase price and will require the same processes as your first mortgage. If you are purchasing a non-winterized vacation home, or will not have year-round access, then you will be required to put down 10%.  Down payments for these properties can be taken from the principle residence, however both the extraction of the equity and the new purchase would be subject to debt servicing rules.  Happy to review and give you the best advise on how to make it all work!

The Key things to note when looking at Second Homes are:

• Single family dwellings only, with the specifications of a typical home residence
• Must have year-round access and be suitable for year-round use (indoor heating and fully-serviced water supply)
• Occupied by the owners for a portion of the year, or by a family member to live in rent free
• High ratio financing (as little as 5% down)
• Conventional mortgages (at least 20% down) follow regular application policy
• RENTAL INCOME can not be used for help in qualification
• Other restrictions may apply, e.g. price ceilings

Recreational and Vacation Properties

• Quality properties with year-round road access
• Residential-standard water and septic system, electrical and heating
• Used for recreational purposes
• As a second property, other restrictions may apply

Note: Properties with only seasonal access that aren’t winterized or don’t receive year-round plumbing may be subject to further restrictions and higher rates.