The diversity of Ontario’s Cottage country also can produce a diversity in mortgage program options from one location to another.
Cottage mortgage programs will also vary by type of structure, its access to water and sewer, as well as where its situated in its local market. For instance, properties that are in a more populated or filled out cottage area are going to have a stronger resale market on average than properties that may be in the same general locale, but are sitting more on the outskirts in a more remote setting.
Mortgage lenders, both institutional and private, will have differing opinions of one cottage market to the next as well. Stronger markets will command higher loan to value ratios in certain situations and greater overall lender interest.
Bank and other institutional mortgage programs also offer insured products to allow you to acquire the same sort of higher leverage, lower cost residential mortgage that you could perfect in a larger urban area.
From a private mortgage point of view, the amount of lender interest and the mortgage rates and fees are going to depend largely on the resale market for similar assets. The more remote and unconventional the cottage property is, the less likely it will able to attract any type of financing.
While not common, there are also situations where cottage loans can be secured on land that is leased. National parks and first nation’s reserves can sometimes provide long term leases to occupants which do not allow a mortgage to be registered, but due to the strength and length of the lease in place, some lenders will provide a cottage loan on the value of the building only.
The key point here is that there can be considerable variability with Ontario cottage mortgage financing from one location to another and from one cottage structure to another.
So in order to make sure you’re getting the best available deal in your neck of the woods so to speak, the best solution would be to work with a mortgage broker who can help you more effectively navigate the cottage mortgage market.
If you have an Ontario cottage mortgage financing need, I suggest that you give me a call so I can quickly assess your situation and go over the cottage mortgage options most relevant for the area and property you’re looking at.
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel