VACATION AND SECOND HOMES

Getting a mortgage for a vacation property or second home adds excitement to your dream of leisure ownership, but there are some unique hurdles to consider compared to a primary residence. Here at Swivel Mortgage Group in Markham, we've helped countless Canadians navigate the process and secure the perfect financing solution for their escape haven.

 

Income Verification 

 

Lenders may require additional documentation to verify a borrower's income for a vacation property or second home mortgage. This is because borrowers may not have the same level of stable income as they do with a primary residence, especially if the property will be used as a vacation rental. Review our Income Qualifier Calculator for more details.

​

Down Payment Requirements

 

Lenders may require a larger down payment for a vacation property or second home mortgage compared to a primary residence. This is because vacation properties and second homes are considered to be a higher risk for lenders.

​

Property Usage Restrictions

 

Depending on the location and type of property, there may be usage restrictions that impact a borrower's ability to obtain a mortgage. For example, some lenders may not finance properties that are rented out for short-term vacation rentals.

​

Property Condition

 

Lenders may require an inspection of the property to ensure that it is in good condition and suitable for use as a vacation property or second home. This is because the property may be vacant for extended periods of time and may be subject to more wear and tear than a primary residence.

​

Location

​

The location of the property can also impact a borrower's ability to obtain a mortgage. For example, some lenders may not finance properties located in remote or rural areas.

​

Insurance Requirements

 

Lenders may require additional insurance coverage for vacation properties or second homes, such as flood or hurricane insurance. This can add to the overall cost of owning the property.

 

 

At Swivel Mortgage in Markham, we understand the unique considerations involved in obtaining a mortgage for a vacation property or second home. Our experienced mortgage professionals can help guide borrowers through the process and find the right mortgage to fit their unique financial situation and goals.

​

Contact us today and let's unlock the door to your dream getaway!