cCottages & Second Homes

Cottages and second homes can be financed at up to 95% of their value, depending on property type and characteristics.

Cottages

Cottages are divided into two types for the purpose of mortgage financing. Properties with year-round access, a permanent foundation, drinkable water and winterized with a permanent heat source, are considered type ‘A’ properties. They can be financed up to 95% of property value. Cottages that do not meet the above criteria, such as those with seasonal access, or access by boat only, are considered type ‘B’ properties. The mortgage insurance premium is higher for this type of property.

Second Homes

People who live a considerable distance from their work will sometimes purchase a second home close to their job, to reduce the weekly commute. Others will buy a second home for an adult child to live in while attending college or university.

Financing is available at up to 95% of property value for second home purchases. The property must be intended for occupancy at some point during the year by the borrower, or a relative of the borrower. It is possible to purchase a second home with up to 4 units as long as one unit is to be occupied by the borrower, or a relative.