John Antle | Mortgages Beyond The Bank

Your Kelowna Mortgage Broker

Your Kelowna Mortgage Broker

Whether for weekend getaways, to have a cottage by a lake for vacation season, to provide housing for family members, or to use a rental property, many Canadians want to buy a vacation home or second home. Whatever your reason, John Antle can help you find the best financing options for your next property purchase.

cabin in the woods with hammock in front

Buying Secondary or Vacation Homes

There are differences between the mortgage options available for purchasing a vacation or second home and a primary residence. Whether you intend on purchasing rental properties or vacation destinations 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 mortgage financing.  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 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, but generally a home equity line of credit would not be available.

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 offer default insurance for vacation or second home properties currently. The alternative insurance provider – Genworth Canada – currently will 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

    Our team is devoted to helping you achieve your long-term goals. Enjoy options and possibilities that you may not have considered when sticking with traditional banking products. If your goals include paying down your mortgage faster or looking for a rental income from an investment property to make some headway on your amortization, we are happy to discuss all of your options. Your Kelowna Mortgage Broker can help you with your first mortgage or renegotiate the terms on an existing property. 


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