Are you in the point in your life where you are beginning to consider buying a second home? Would you like a mountain retreat or a house on a lake, a place for a family member in another city while they are attending school or just getting established, a home for a parent who supported you all these years, or a condo downtown to stay in during the week as not to have to commute so long every day?

There are many reasons why someone would consider buying a second home.  Canadian mortgage insurance companies have come to realize Canadian lifestyles are changing and they can help them realize their dreams of second home ownership with as little as no down payment, five per cent, or a ten per cent down payment. (Depending on which three insurer is used).
Mortgage Loan Insurance is available for mortgage loans that are secured by a borrower’s second home.  Financing of up 100 per cent (or no down payment) is available on a single-unit property or duplex, depending on the strength of the applicant’s credit score, and 90 per cent financing is available on a property up to four units.  An individual can be a borrower/co-borrower on a maximum of two insured homeowner properties (per insurer). 

There are no additional premium surcharges associated with the second home program unless extended amortization beyond 25 years is being used. An additional .20 per cent premium surcharge will be applied to the regular premium rates for every five years of amortization beyond the traditional 25-year mortgage amortization period, to a maximum period of a 40-year amortization.

The home can be from one to four unit properties (80 per cent of the rental income on the second unit for a two-unit property can be used to help qualify and 50 per cent of the rental income on a three- and four-unit property can be used to help qualify for the mortgage).

At the time of the transaction the mortgage loan must be intended for occupancy at some point during the year by the borrower-owner or a relative of the borrower on a rent-free basis.  This means that you can buy the property for your family to use as a recreational property or for a child, parent or other relative to use on an ongoing basis.

The property can be located anywhere in Canada and must be suitable for, and available for year-round occupancy.  Properties located on an island must have year-round bridge or ferry access.  Seasonal use or seasonal access properties can be bought but with a minimum ten per cent down payment, and there may further restrictions, depending on the specific property characteristics.  Time-share interests, life leases and properties in rental pools are not eligible for this program but there are alternate solutions to financing those types of programs.

The rewards of homeownership can be great.  Why not duplicate the advantages with more than one home without having to dip into your savings or investments to do it?   I can be reached at (403)616-9801 or .(JavaScript must be enabled to view this email address).