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Chapter 7 – Finding your home away from home

The idea of an easy going cottage lifestyle still remains relevant in the minds of Canadians when spring rolls around after a long winter. At Personal Mortgage Group we can help you realize that dream and we look forward to helping you achieve it.

There are two styles of vacation homes that lenders pay attention to:

Depending on your down payment amount, lenders and mortgage insurers are extra particular to the quality of the home itself: this means that the features, or lack thereof, can play a role in whether you will find acceptable financing for the home.

Things to consider are:


Is there year round access?


Is the property winterized? What are the sources of heating?


Is the water potable?


Is there a permanent foundation?

If you answered yes to all of the above, you can find quality residential financing with as little as 5% down.

The good news is that even if you are looking at a three-season or rustic cottage, there still may be great financing options available. For example, Genworth Mortgage Insurer provides a “TYPE B” cottage option, with as little as 10% down. Even if you plan to put down a larger payment, the lender may still ask a third party to insure the mortgage against default due to marketability concerns (not everyone wants a rustic cottage in the woods, away from amenities, you know!).

Features, or lack thereof, can include:


No permanent heat source (a wood stove can be acceptable)


No permanent foundation


Seasonal road or water access only is OK


Water source doesn’t have to be potable, but there must be running water in the home itself

Aside from the baseline of qualifying for the mortgage, in addition to your other debt obligations, the property itself is evaluated at a different level than would be a home in a city that you plan to live in permanently.

Don’t forget about considering the costs travel and the maintenance along the way.

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