Purchasing a Cottage or Second Home

Considering a vacation home, cottage, or city condo as your second haven? Leverage the equity in your existing property for a down payment or even full financing. A minimum 5% down payment is required for secondary homes, with potential variations based on the property type.

Before diving into your second property journey, consult with your mortgage agent/broker, financial planner, and realtor. Together, they’ll help define your budget, discuss tax implications, and guide you toward the perfect property.

Secondary Homes – Type A

1. Foundation Requirements:
   A permanent foundation installed beyond the frost line, certified by a professional engineer.
   Acceptable foundations include concrete/concrete block, preserved wood, or post/pier on solid bedrock.
2. Zoning and Usage:
   Must be zoned and used as residential, rural, or seasonal.
   Mixed-use or rental pooling arrangements are not accepted.
3. Title Conditions:
   Acceptable titles include freehold or condominium. Co-ops or ¼ interest ownerships are not accepted.
4. Property Composition:
   Minimum requirements: a kitchen, 3-piece bathroom, bedroom, and a common area.
5. Economic Life:
   The remaining economic life must be at least 25 years.
6. Road Access:
   Year-round access on reasonably maintained public roads serviced by the local municipality.
   Privately serviced roads are allowed with a maintenance contract in place.
7. Winterization and Heating:
   Property must be winterized with a permanent heat source.
   Acceptable heating methods include baseboard, forced air, water radiator, radiant, coal, propane, geothermal heat pumps, or heat pumps.
8. Construction Quality:
   Good quality construction with no signs of deferred maintenance.
9. Water Source:
   Acceptable water sources include well, municipal service, or cistern.
   Water must be drinkable; lake or river water is accepted with a property-specific filtration system (e.g., reverse osmosis).
10. Market Appeal and Surroundings:
    Must exhibit good market appeal in the area.
    No adverse influences or neighborhood nuisances should be present.