Vacation and Second Home Mortgage Guide

Second Property / Vacation Home Mortgage

This second home mortgage guide will show you what's possible and how to take the next step towards purchasing your second home, whether you want to buy a summer cottage, a winter chalet, or simply a property for your child or an elderly family member.

How to Buy a Second Property in Ontario

Buying a second property or vacation home in Ontario is similar to the process of buying your primary residence.

We’ll start by pre-approving you and developing a mortgage strategy for you so you can begin looking for your second property with confidence.

If you’re looking to buy your next principal residence read this article instead.

We know the requirements of all the lenders, and will provide you with expert advice.

​​Second Home Mortgage Rules Canada

Based on the details of the property, some lenders are better suited for certain situations than others. Considerations include:

  • Property to be used by family member vs. for recreational use
  • Year-round access vs seasonal
  • Water, septic system, electrical, and heating details

Depending on your goals and the property you’re interested in, we’ll find the perfect lender for you and your chosen second property.

Minimum Down Payment for Second Home Canada

In Canada, you can buy a Vacation/Second home with as little as 5% down when the purchase price is under $500,000.

When the purchase price is above $500,000 the minimum down payment is 5% on the first $500,000, and 10% on the amount above $500,000.

If the purchase price is above $1,000,000 you must put at least 20% down.

When you put less than 20% down the mortgage will be insured with Sagen or Canada Guaranty. The insurance premium is added to the mortgage and is approximately 4% of the mortgage amount.

Using Equity to Buy a Second Home in Canada

Typically the easiest way to buy a second home or vacation property is to use the equity in your current principal residence for the down payment.

When we develop your second home mortgage strategy we’ll explore the option of refinancing your principal residence as a way of accessing that equity. We can also consider using a second mortgage or home equity line of credit (HELOC).

Get a Lower Rate With Dominion Lending Centres

Getting a lower rate can make a real difference in your ability to afford an additional home or vacation property. We check with accredited lenders, then pass along our volume discount to you, ensuring you get the lowest rate possible.

Plus, you receive unbiased advice from an experienced mortgage broker who is passionate about serving you.

Ready to get started? Get your free consultation today!

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Client Testimonials

“Our experience in dealing with Catherine Evel for obtaining our mortgage was nothing short of excellent. All our questions or concerns, which were many, either sent by email or phone calls were returned promptly. Catherine is a true professional and we highly recommend her services. R.Roy and P.Cryne”

Peter Cryne

“Catherine has helped us get mortgages for 10+ years now. She helps us to get the best competitive rates. She provides advices to best suit our financial situations and get the best outcomes. She makes sure all inquiries are top priority and respond promptly. We highly recommend her and we will only go to her for our future mortgages.”

Wendy Tu

“Catherine is a professional that I’ve been dealing with since my first house. Her knowledge and helpfulness go beyond regular standards. This is the reason that I will contact her every time I need the broker advise. I am confident that she can help everyone, not matter the issue, that’s the way Catherine is.”

K Klepa

“Catherine and her team are exceptional. As a real estate professional I have worked with many mortgage brokers and Catherine is the most professional, attentive, knowledgeable and genuinely caring one I have ever had the pleasure of working with. I can’t recommend her enough.”

Mary Hamilton

“I have been working with Catherine and her team for many years now. I trust her judgement on getting me the best mortgage rate for my investments and home. Polite, Professional, Knowledgeable, Patient and responsive to all my questions and concerns through the whole process. Couldn't be happier!!”

Ken flynn

“Had a great experience. I had a short time frame to ensure I had funding for my mortgage and Catherine handled it with ease. Communication was quick, clear, and comprehensive. Absolutely would recommend.”

Brad Weemhoff

“I have used Catherine Evel as our Dominion Lender broker for 5 transactions now. Working with them definitely brings the stress of moving and remortgaging down. Very impressed with the efficiency and thoroughness of this group and I have recommended them to many others.”

Trevor Cottrell

“Great service! We've been customers for over 10 years! I recommend to all.”

Mike Raposo

“Over the past several years, we have had the opportunity to work with Catherine as she searched for the best mortgage options based on our needs and situation. During this time, Catherine went out of her way to help us in every way possible. She not only helped to find the best mortgage situation for us but, also, offered some beneficial advice at the same time. Our experience with Catherine and her team has been nothing but extremely positive. I would recommend Catherine to any family or friends. Thank you, Catherine!”

Dave Murray

“Catherine and her team were recommended to us by our real estate agent when we were purchasing our new home. From our first visit to our last phone call, Catherine and her team have been wonderful! Everyone has been very polite, helpful and patient with all our questions, no matter how many times we asked for further explanation. I would strongly recommend Catherine and her team to anyone who is looking for a mortgage professional. We will certainly continue to use Catherine's services.”

Shelley Sager

Ontario Mortgage Broker

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