BEST MORTGAGE RATES FOR YOUR VACATION PROPERTY IN CANADA
A lot of Canadians nowadays prefer to spend quality time with their loved ones in their vacation homes. Cottages provide a bundle of family memories for a great number of residents, who are reaping the benefits of great lower prices, and innovative latest mortgage products that pave a way to these getaway properties easily.
Why Invest in a Vacation Home?
Vacation or second homes are great assets that add to your overall value, whilst also presenting you and your loves ones an ideal place to spend the vacations. Given that the vacation properties are usually situated in places that attract tourism, their prices are generally on a higher side when compared with the traditional properties. Furthermore, vacation properties can also be used as rental homes providing you a steady flow of additional income.
How Does a Vacation Home Mortgage Work?
Second homes come under the ‘Type A’ properties whereas the vacation homes fall under the ‘Type B’ proprieties. There are different types of mortgage plans available for each of these types. Although same factors are applicable on both these kinds of mortgages, such as the down payment and the duration of amortization, however, vacation home mortgages feature a couple of unique considerations.
You can buy a vacation home with a small down payment (5%) while traditional mortgage products are available at a down payment of 20%. If a borrower has less than 20% down with regards to the value of vacation property, it is a must for you to get your loan insured from an insurance corporation like CMHC.
When it comes to a vacation property mortgage, loan providers are keen about not just your financials as a borrower, nevertheless also the details of the property you are interested in buying. Most of the loan providers in Canada have strict requirements for vacation homes and are a lot more complicated when compared with a conventional mortgage.
Vacation Home Financing Options:
There are a number of financing options to choose from to fulfill your dream of buying a vacation home:
- You can make use of the equity in your principal property for financing your vacation home purchase,
- Or perhaps you can choose to apply for a second mortgage loan on your principal property,
- Or you can basically finance the vacation home based on its individual value.
How Can ATP Mortgage Help You?
In search of the best interest mortgage rate for a vacation home in Canada? At ATP Mortgage, our team of mortgage advisors helps you to find your way around the complex world of loan providers and mortgage applications to get you the best-possible mortgage at the lowest price, and customize the mortgage to suit your life and your monetary goals. We collaborate with a number of the leading mortgage lenders in Canada to offer their customers with the lowest rates possible. Additionally, this provides you with the flexibility to pick the terms that perfectly meet your requirements. You can select from a variable or fixed rate mortgage, and create a payback plan that fits your lifestyle and requirements.