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31 Mar

Tips for Buying a Second Home or Vacation Property with as little as 5% down!


Posted by: Darick Battaglia

Tips for Buying a Second Home or Vacation Property

Vacation Homes/Cottages/Second Homes

At Dominion Lending Centres Barrie, we know that today’s busy lifestyle requires more home ownership options – whether it’s a second home in the city to reduce that weekly commute, or a cottage at the lake for weekend getaways. With our Vacation/Second Home Program, Canadians can now purchase a second home or cottage with an affordable monthly payment with 5% down payment.

Acceptable loan purpose

* Second homes (Type A) available for purchase and refinance

* Vacation homes (Type B) available for purchase only

* Program does not provide for the purchase of investment, rental pool or timeshare properties; therefore, incidental rental income will not be used for qualification purposes.

* Type A properties: 95% LTV (Purchase) and 90% LTV (Refinance) * Type B properties: 90% LTV (Purchase)

Max Loan Amounts

* Type A – Maximum loan amount: Metro Toronto, Metro Vancouver and Metro Calgary – $700,000; rest of Canada – $600,000 * Type B – Maximum loan amount: $350,000 (exceptions will be considered on a case by case basis)

Type A Properties (Second Homes):

* Property characteristics must comply with the our Mortgage Owner Occupancy Program

* Up to two units Maximum

* Available for purchase and refinance

Type B Properties (Vacation Homes and Cottages):

* Property characteristics same as Type A properties except for the following;

* Property need not be winterized

* May have seasonal access (road not plowed during winter)

* One unit maximum

* Available for purchase only

Terms/qualifying interest rates

* Six months up to 25 years – Fixed, standard variable, capped variable and adjustable rate mortgages are permitted

* For terms less than three years, the qualifying interest rate is the greater of three-year posted rate or contract rate

* For terms of three years or more, we use the contract rate

Amortization Options:

Type A

LTV > 80%: Up to 25 years

LTV ≤ 80%: Up to 40 years

Type B

Up to 25 years

Feel free to contact us for more details. barrie mortgage broker, Best mortgage rates