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10 Feb

BUYING A SECOND HOME OR VACATION HOME

General

Posted by: Peter Paley

Second Homes, Cottages and Vacation Properties

Getting a mortgage for a second home or vacation home is really quite simple.  There are two types of mortgage applications.   One for Type A properties (4 season homes, condos, single family) and type B properties (3 season cottages, seasonal access, floating foundations).  Let’s address each type.

Type A:

  • 5% Down Payment for properties $500,000 or less.
  • Maximum 1 unit (no duplexes under this program).
  • Property must be owner occupied or occupied by an immediate family member.
  • New Construction must have New Home Warranty
  • Max Loan under this program for Manitoba is $600,000
  • Strong Credit Bureau required.
  • Down payment can be borrowed under flex-down guidelines.

 

Type B:

  • 10% Minimum Down Payment
  • Minimum credit score of 680
  • Maximum Loan Amount of $350,000
  • Down payment must be from client’s own resources.

 

This is an excellent program for clients who are looking to purchase a cottage or vacation property.  It is also wonderful for parents who are purchasing a home/condo for their children while they are going to school/university.  For a full list of type B property exceptions please contact us directly or refer to our handout.

 

Please watch our video and like it on YouTube and refer to our “Second & Vacation Homes” handout for more information.  Please feel free to share with your clients.

Click the link below for our YouTube video!

https://www.youtube.com/watch?v=-wS7A0mt4Rg

If you have any clients looking for a mortgage pre-approval or mortgage advice please have them visit our website or call Peter at 204.227.2744.