Buying a cottage in Ontario? Financing a getaway is different than a standard residence. Understanding your property classification is the first step to approval.
Lenders categorize vacation homes into two types:
✅ Type A: Year-Round Properties
Secondary residences with year-round road access and full services (electricity and permanent heating).
- Minimum 5% down payment.
- Standard mortgage rates.
✅ Type B: Seasonal Properties
Seasonal road or boat-only access; may lack permanent heating or winterized water.
- Minimum 10% down payment.
- Specific lender criteria applies.
💡 Rental Potential: Looking to offset costs? Some lenders allow using projected rental income to help you qualify, making your dream retreat more affordable.
Whether it’s a year-round home in Muskoka or a seasonal cabin in the Kawarthas, I provide the strategy to get you there.
Amit Bhatnagar, Mortgage Agent Level 2
Phone: (437) 776-5148
Email: mortgagebyamit15@gmail.com
FSRA License 10530
#OntarioRealEstate #CottageFinancing #MortgageBroker #VacationHome
