Purchasing a Vacation Property

Owning a cottage or other vacation property is the holy grail for Canadians. A vacation home mortgage can help make your relaxation dreams a reality.

A vacation home mortgage, sometimes called a second home mortgage, is a home loan used for the purchase of a second property. Unlike many mortgages on your primary home, a vacation property mortgage will often allow you to rent it out, as well as visit throughout the year. This gives you additional financial security, in that you can always bring in additional income with which to make the payments; while alleviating financial stress at the same time.

Adirondack chairs

A vacation home mortgage offers a variety of great benefits. It allows you to finance a property that not only can be used personally but can also double as a personal investment. In today’s hot market, a vacation home can boost your net worth significantly. Because vacation properties are often located in popular areas, their value tends to be higher than that of traditional homes.

Whether you plan to tenant it out or Air BnB your vacation property when you’re not using it, the possibilities are endless. This provides the benefit of an additional income stream while providing your family with a great place to create memories.

Obtaining financing on a second property can be a little more difficult than a principal residence. These types of mortgages are seen as riskier to a lender. Lending requirements vary, so it helps to have keen insight into what each financial institution needs. That’s where Ottawa Mortgage Market comes in. We have the experience to maneuver through the red tape and to understand exactly what the lenders are looking for in order to approve your financing.

When shopping for a vacation property, we recommend you do some financial planning at the same time. This will allow you to make an offer on your dream vacation home with confidence, giving you an edge over other bidders. Before beginning your search, make sure your finances are in order, debts paid and credit score is as high as possible. Credit history plays an important role in getting approved for a vacation property mortgage.


In some cases, a home equity loan might be the best course of action when financing your vacation property, while a fixed-rate mortgage might be ideal for others. We have a variety of options available, so you can make the right choice for your situation.

If you have any questions, contact Ottawa Mortgage Market today. A conversation with our team about the best type of vacation property mortgage is a great first step towards that dream cottage or rental property. We can walk you through the process while maneuvering through the bank’s requirements and finding the mortgage solution that is right for you. We’ll make it as easy as possible, advising you every step of the way.

Call Ottawa Mortgage Market today to schedule a consultation with one of our mortgage experts. We’ll help you get the financing you need to build your net worth and the year-round enjoyment of a vacation property.