How amazing and liberating would it be if you had your very own cottage to retreat to on any given summer weekend? Simply pack up and head off to your very own vacation property that you can visit whenever you feel like it! No landlords to deal with, no searching high and low for the best cottage and location, and no fighting for available weeks or weekends. Simply get on the road and go!
You might be wondering if you can actually afford a seasonal property and be approved for a vacation home cottage mortgage. The truth is, owning a cottage and financing it can be a lot easier than you may have imagined! With the help of an experienced mortgage broker, you can get approved for a home loan to finance a cottage anywhere in Ontario! This province certainly has plenty of cottage country to take advantage of!
The Basics of Financing a Vacation Property
When it comes to getting a vacation home cottage mortgage, there are a few basics that you should consider:
The same mortgage principles are still in effect. Much like a regular mortgage to finance a family home, the same principles apply for cottage mortgages. Lenders will look at your down payment, credit score,income, assets, liabilities, etc. If you currently own your own home, you may be able to use the equity in that home to help finance a cottage, or to help you be approved for financing.
Lenders will also consider the valuation and assessment of the cottage compared to the selling price and amount being financed. How the cottage is accessed is of key interest to your mortgage lender. Cottages can range from hunting cabins to recreational homes on the lake with paved, roads, sewer systems, full furnaces and utilities.
One variable they will want to know if your cottage is accessible year round or only during the summer. If it’s not accessible all year, the options they offer are more limited. The lender may also want to know the condition of the cottage before loaning money – so the loan may be based on an appraisal being performed.
Calling the Professionals in Second Home Mortgages
Claire Drage and her team of Mortgage Medics have been helping Canadians get financing to buy a cottage in the location of their choosing. She knows exactly which lender to approach when a cottage mortgage is required, and who will be more apt to offer ideal mortgage conditions and low interest rates. If you want a second opinion from what your bank says, with house calls and confidential consultations, contact the Mortgage Medics team today at (905) 847-6611.
