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Tips for Buying a Second Home or Vacation Property
Vacation Homes/Cottages/Second Homes
At Genworth, we know that today’s busy lifestyle requires more home ownership options – whether it’s a second home in the city to reduce that weekly commute, or a cottage at the lake for weekend getaways. With our Vacation/Second Home Program, Canadians can now purchase a second home or cottage with an affordable monthly payment with 5% down payment.
Acceptable loan purpose
* Second homes (Type A) available for purchase and refinance
* Vacation homes (Type B) available for purchase only
* Program does not provide for the purchase of investment, rental pool or timeshare properties; therefore, incidental rental income will not be used for qualification purposes.
 Loan-to-value ratio limits
* Type A properties: 95% LTV (Purchase) and 90% LTV (Refinance)
* Type B properties: 90% LTV (Purchase)
Max Loan Amounts
* Type A – Maximum loan amount: Metro Toronto, Metro Vancouver and Metro Calgary – $700,000; rest of Canada – $600,000
* Type B – Maximum loan amount: $350,000 (exceptions will be considered on a case by case basis)
Eligible properties (Refer to the Property Type Schedule)
Type A Properties (Second Homes):
* Property characteristics must comply with the Genworth First Mortgage Owner Occupancy Program
* Up to two units Maximum
* Available for purchase and refinance
Type B Properties (Vacation Homes and Cottages):
* Property characteristics same as Type A properties except for the following;
* Property need not be winterized
* May have seasonal access (road not plowed during winter)
* One unit maximum
* Available for purchase only
Terms/qualifying interest rates
* Six months up to 25 years – Fixed, standard variable, capped variable and adjustable rate mortgages are permitted
* For terms less than three years, the qualifying interest rate is the greater of three-year posted rate or contract rate
* For terms of three years or more, we use the contract rate
Amortization Options
* Up to 35 Years (Type A properties)
* Up to 25 Years (Type B properties)
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MTL Real Estate Broker & Coach 