Vacation Home & Second Property Mortgage Financing Kelowna

John Antle | Mortgages Beyond The Bank

Your Kelowna Mortgage Broker

Your Kelowna Mortgage Broker

Whether you’re looking for weekend getaways, a cottage by a lake for vacation season, housing for family members, or a rental property, the desire to purchase a vacation home or second home is shared by many Canadians. No matter your reason, John Antle is here to assist you in finding the best financing options for your next property purchase.

cabin in the woods with hammock in front

Buying a Second Home in Canada

If you’re considering buying a vacation or second home, it’s important to understand that there are specific differences in mortgage options compared to a primary residence. Whether you’re looking to invest in rental properties or find a vacation destination for your family, the following frequently asked questions will shed some light on your financing options

Would a lender finance any type of vacation or second home?

Not all vacation properties are considered the same when it comes to financing a second mortgage. Many lenders will divide properties into two categories. The first being a property that is accessible year-round and has a proper cement foundation. The second being a property that may not be accessible all year.


A good example of a property that may not be accessible all year would be a cabin on a lake that you would occupy for summer holidays. Both types of second properties may be financed through home mortgages, but some will require larger down payment, larger mortgage payments or perhaps higher interest rates.

What is the interest rate I would pay to purchase a vacation or second home?

If you are purchasing a vacation property or second home, and the property in question is accessible year-round, most lenders will offer you the same mortgage rates and terms as they would for a residential home buying. You could choose a fixed or variable rate mortgage. However, it’s important to note that a home equity line of credit may not be available in such cases.

What is the down payment required to purchase a vacation or second home?

If you are wishing to purchase a vacation home, often lenders will consider any property that is accessible year-round with a proper cement foundation the same as a residential mortgage, requiring down payments of 5% of the purchase price. 


A second home that will be occupied by a family member also can be approved in many cases with a 5% down payment. If you wish to purchase a cabin on a lake to use for summer vacations, many lenders will require a larger down payment, potentially up to 35% of the purchase price.

Would I need CMHC (Canada Mortgage and Housing Corporation) default insurance to purchase a vacation or second home?

Depending on your down payment, default mortgage insurance may be required by the lender. It is important to understand that CMHC does not currently offer default insurance for vacation or second home properties. However, there is an alternative insurance provider, Genworth Canada, that does consider insuring these types of properties.

Is it possible to refinance my property to purchase a vacation or second Home?

Yes, there are several options available to refinance an existing property for funds to purchase a vacation or second home. For example, If you wish to purchase a cabin to enjoy during the summer months, many lenders will require a minimum down payment of 35% of the purchase price. You could potentially refinance your existing property for these funds, either with a home equity line of credit or a mortgage increase. Speak to your mortgage broker for advice to determine which strategy is best for you.

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    Explore Your Second Property Mortgage Options

    At John Antle Mortgages, we are dedicated to assisting you in realizing your long-term goals and financial aspirations. We believe in presenting you with a range of options and possibilities beyond traditional banking products, helping you uncover potential avenues that you might not have considered before. 


    Whether your goals include paying down your mortgage faster or generating rental income through an investment property to make progress on your amortization, we are more than happy to have comprehensive discussions with you about all your options.


    As your Kelowna Mortgage Broker, we can guide you through the process of securing your second mortgage or skillfully renegotiating the terms on an existing property. We understand that purchasing a home involves not only the loan itself but also various other aspects, including legal fees and property taxes. 


    As your trusted partner, we will walk you through the intricacies of the mortgage process, ensuring you are well-informed about all relevant considerations. Our aim is to empower you with the knowledge and support needed to make sound financial decisions that align with your unique circumstances and aspirations, and help you towards a secure and prosperous future.


    Contact John Antle Mortgages in Kelowna today to get started!

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