Specialized Knowledge of Cottage Mortgage Financing

Purchasing or renovating a cottage property is a closely held dream for many Canadians. With a desire to enjoy this dream sooner than later, often cottage mortgage financing is required. Our specialized knowledge in cottage mortgage financing and the lowest interest rates can help make your purchase its least expensive, and most enjoyable.

Featured in Cottage Life Magazine

Approval Rules Specific to Cottage Mortgage Financing

Type A Cottage Properties: Essentially a second house.

• Have a full foundation.
• Are fully winterized/ 4 season dwellings.
• Are accessible by municipally plowed road/ year round access.
• Is located in an area with demonstrated, reasonable resale demand.
• The property is in good condition.

Type B Properties: The more ‘rustic’ ambiance.

• The foundation can be a concrete block or post.
• Property does not have to be winterized, can be 3 season.
• Year round access not required.
• Does not require potable water.

Down Payment Required for Cottage Property Types

5% down payment

An ‘A type second home’ cottage property can be purchased with as little as 5% down payment. This property should clearly meet all the aspects of an ‘A type property’ and there is less room for exceptions at this down payment point. A CMHC ‘mortgage insurance premium’ would apply since its less than 20% down payment.

10% down payment

‘B type cottages’ can be purchased with a minimum 10% down payment. This means the more rustic type that may not meet all the standard requirements of an ‘A type’ cottage. Since its less than 20% down payment, there is a CMHC insurance premium that applies.

20% down payment

This level of down payment can include either A type or B type cottages, without the CMHC insurance premium. We have one versatile credit union lender that will even lend on log cabin and island properties at reasonable rates at 20% down payment.

35%+ down payment

Major Banks are more lenient for B type or rural cottage approvals with a higher down payment, at the lowest rates. 

How do you know where you stand? Where do you go from here?

The most effective way to get some detailed financing information on your cottage purchase is to send us a copy or link of the MLS. From here we can look at how a lender may view your property, and even show the listing among lenders before any formal submission.

The list below describes the approval process in detail:

1. Submit your application for pre-approval.
2. A cottage mortgage specializt will contact you for more information, and to discuss your unique situation and goals. If you have a cottage property in mind, this listing can be discussed and lender shopped at this time.
3. Once you have made an offer to purchase, we will arrange your lowest cost mortgage solution and provide you with all the details. All of your questions will be answered, and your approval documents are submitted to the lender.
4. Once the lender has been ‘satisfied’ by the documents returned to them, it is safe to waive your condition of financing and proceed to closing.

Unique Cottages Types Approved at Competitive Rates

• • • Island properties 
    • Log cabin properties
    • Short term rental purchases

Cottage properties are inherently unique. We have relationships with a vast array of lenders that offer competitive rates and excellent terms. Some of these lenders are not well known to most mortgage brokers. Contact us to discuss your unique property.

Cottage Construction and Re-Development

• • • We provide custom, full service cottage mortgage solutions to high net worth individuals and families.
    • We have relationships with several reliable lender options committed to your best outcome, at a competitive cost.
    • We seek to simplify the process for you wherever possible.

Short Term Cottage Rental Financing

• • • Finance or refinance an Air B n B type short term rental.
    • Get advice on tax and property management.
    • Allow us to handle the ‘heavy lifting’ with the lender, so you can focus on your project.