No longer just for the wealthy, more Canadians than ever are now purchasing second homes.
Today’s lifestyles are very busy and there are more reasons than ever to consider purchasing a Second Home.
Whether it is the dream of a summer cottage, a place for your children to live while they attend university, a condo in the city to avoid the hectic commute or to help buy a home for your elderly parents who are on a fixed income. The CMHC Second Home Program makes it now easier than ever.
Up to 95% financing is available for owner occupied properties all across Canada. (This program is not available for investment properties.) There are a few conditions here: either the borrower must occupy the property for at least some part of the year, or a family member must occupy the property on a rent-free basis. The property must be winterized, and be accessible for year-round occupancy.
A quick note here: the program can’t be used to purchase time-shares or similar rental pools.
There are many financing options available and speaking with a mortgage broker who has access to a wide range of lenders is the best option. The requirements for mortgages on second homes can vary greatly from lender to lender and a mortgage broker can make you aware of all of the choices. You’ll want the best possible financing for your new real estate investment.
Instead of waiting many years to save enough to purchase a second home, you may be able to access the equity in your principal residence to finance a Second Home. This involves a cash-out refinance of your property and there are many options available. Another option may be a second mortgage on your current property.
With our current interest rates at all time historical lows, now is the time to get serious about your dream to own a Second Home. Let’s work on your mortgage plan together.
April Dunn is a Mortgage Broker who has been assisting clients to purchase, refinance or renew their mortgages for over 20 years. April is the owner and a Mortgage Broker with The Red Door Mortgage Group – Mortgage Architects and specializes in Strategic Mortgage Planning. April provides a full range of residential and commercial mortgage financing for clients all over the province of British Columbia and across Canada through the Mortgage Architects network. April can be reached at 250-826-3543 or april.dunn@mtgarc.ca