Buying a Second Home
Updated: Feb 20
Only 15% of Canadians owned second homes in 2018 but this number is sure to rise as less of us are tied to an office commute. A second home can be whatever you want it to be – a lakeside oasis from city life or a safe place for your high school graduate to attend college.
You’ll need at least 5% down payment to make this happen. Funds can come from savings or investments, or if you’d rather not liquidate market positions, equity in your home. If you don’t already have a home equity line of credit it takes about 3-4 weeks to set one up.
There are lots of lenders who will mortgage second homes and interest rates are down and on the decline. But the lowest rate isn’t always the cheapest cost (have you ever been burned by a deal that was too good to be true?) so get expert advice on what’s best for you.
The lender has to like the property as much as you do so expect that there will be an appraisal. If they think you overpaid (which can happen in a heated market) be ready to put more down payment. Keep in mind that rural properties tend to be unique and may require a specialty lender - for example, if there’s no running water - at a higher cost. If your new getaway needs some TLC consider rolling the cost of upgrades into the mortgage.
Of course, you’ll need to qualify to buy a second home, which means having decent credit and income to make your payments. I can help by prepositioning your file (it’s free) so you have a solid idea of what your options are. Book your complimentary 1x1 now at laurenpye.ca/approved.
Cheers to the weekend!