The new Mortgage rules that were implemented in April do not change the current guidelines for borrowing to buy a second home, i.e. a Cottage. The dream of owning your own family getaway may be closer to reality than you think!
Now is the perfect time to buy a cottage;
-Interest Rates are still low, (especially the variable rates)
-The HST is not yet in effect, (coming July 1st)
-Markets just before the summer in cottage country are slightly lower, and sellers more motivated to sell.
You can buy a cottage with as little as 5% down payment. The source of this down payment can be the existing equity in your own home, as well as other sources, i.e. RRSPs, gift, etc.
Mortgages for a cottage (second home) are treated the same as your primary residence and you may qualify for an interest rate as low as the current lowest posted 5 year fixed rate or Variable Rate
“As a cottage owner in Muskoka, I understand how important realizing your dream is. As a Mortgage Agent, I want to help you make your dream a reality.”, Sarah Hurson Mortgage Agent # 09002165
