One of the best ways to secure cottage mortgage financing for a year round cottage property is through residential mortgage programs that allow a second mortgage for a single family unit.

These programs will allow you to qualify for an insured mortgage that can provide up to 95% required financing for the purchase of a cottage property.

The mortgage applicants would be required to have sufficient income to meet the debt servicing tests for the both properties combined and the home owner or a family member would be required to occupy the residence ( basically, the cottage property could not be used as a rental property).

For higher income families that are looking to invest in larger, year round cottage properties, these programs can be a great fit in that higher leverage can be achieved for very reasonable interest rates.

This type of mortgage financing can also be used for purchasing a condo property as a second home for the kids to live in while they go to university or work away from home. As long as an immediate family member is residing in the home and its not being used for a rental property, this second home would likely qualify under these programs.

In addition, both homes can also be financed through higher ratio insured mortgages provided that the borrowers can pass the debt servicing requirements and the possess the minimum level of acceptable credit.

If you’re interested in purchasing a cottage property, you may want to first inquire as to whether your existing home mortgage provider has this type of program. If they don’t, and your mortgage is open or near the end of its interest term, it may make sense to first move your mortgage over to a lender offering the two home program prior to shopping or trying to secure a cottage property.

This may take a bit of work to arrange, but if you’re able to secure higher mortgage leverage in the process for a reasonable cost of financing, you could either secure your dream cottage for less money down or start looking at higher priced properties that now can be financed through a second insured mortgage.

If you have a cottage mortgage financing need, I suggest you give me a call so that I can quickly assess your situation and provide relevant options for your consideration.

Click Here To Speak With Mortgage Broker Joe Walsh

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