Spend quality time on your vacation property.

There are just too many health risks when taking a vacation outside your town, city, and especially abroad with the pandemic going on. So what are the options for pandemic-weary Canadians looking for a vacation? Some have found that purchasing a vacation home is the best solution. It’s the pinnacle of social isolation, with the bonus of being able to work from your second home when lockdown policies and orders allow, of course. Plus, it can be a good investment!

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Why Own a Vacation Property?

“Why wouldn’t you want a vacation property?” you might ask. Investing in a vacation property in Canada can be a rewarding experience. However, as with anything else, you should think about your financial condition and if investing in a second house is a good idea for you.

Purchasing a vacation property in Canada can be a fantastic place to start if you want to get into real estate investing. Not only can real estate help you develop wealth, but depending on your loan, you may be able to rent out your vacation property while you aren’t using it to help cover expenditures.

There are still perks to owning a vacation property, even if you don’t rent it out. If you go to the same vacation destination every year, it can make sense to invest in a home there. Consider this: if you plan on visiting the area regularly, having a place to stay that you own, you’ll have a place that feels like home even when you’re on vacation. You can also save the headache of trying to find out where to stay each time.

Long weekends in beautiful cottages, viewing scenic landscapes, weeks spent on the coast discovering Atlantic Canada or months spent traveling throughout the huge mainlands are all possibilities for vacationers. Investors looking for vacation properties in some of Canada’s most desirable markets feel the same way.

However, with all these advantages, the mortgage will most likely be the most expensive aspect of cottage ownership, but don’t forget about the other costs. Keep this always in mind!

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Vacation Home Vs. Primary Residence

Property is categorized into one of three categories for mortgage purposes: primary property, second home, or investment property.

Vacation properties are classified as “second homes” in most cases. A second home is a residence that the owner occupies for part of the year.

Your vacation property must meet the following criteria to be termed a second home:

For a portion of the year, the property must be occupied by the owner.

It should be easily accessible and suited for year-round use.

It must be a single-family home.

Rental, timeshare, or property management agreements are not permitted.

Different lenders will very certainly have their own set of requirements and limits. At the start of the process, be sure to share your objectives and goals for the property with your lender.

The Process of Buying a Property Vacation

The Process of Buying a Property Vacation

  • 1. Pre-Approval of Mortgage

    With consistent mortgage regulation changes, it’s critical to start with a mortgage pre-approval. You and your realtor will have more defined search parameters with pre-approval; you’ll know what to look for and what kind of interest rate to expect. It will help you create a budget and protect you if interest rates rise while you’re looking for a home. Remember that pre-approval is not the same as final approval, and any offer should include criteria such as mortgage financing.

  • 2. Negotiations and Offer

    Your realtor gets to work as soon as you’ve found the perfect property. They’ll take care of everything, including submitting a bid and safeguarding your interests. Your broker will also specify the sale’s terms, such as performing a property inspection and obtaining financing.

    It’s time to clear the conditions if the offer is accepted. Mortgage Intelligence is the company that turns your pre-approved into a final approval. We’ll assist you in choosing the best mortgage option and completing all necessary papers.

  • 3. Deal Closing

    It’s now time to get legal advice from a real estate lawyer. Mortgage Intelligence can make a recommendation if you need help finding one. Your lawyer will accept your down payment (minus the deposit you put down on your offer), register mortgage costs on the title, seek mortgage funds, distribute funds to the seller’s lawyer, and transfer ownership to you! At this point, you’ll sign with your lawyer, take care of any closing charges (such as pending property taxes), and complete the remainder of your purchase’s specifics.

Pros and Cons of Owning a Vacation Property in Canada.


  • Having a home away from home allows frequent vacationers to have their area when away from home. It will not only save you money on housing, but it will also save you money on other expenses. Using the kitchen instead of eating out for every meal, for example, will help you save money on food. Larger families may find it easier to travel when they have their own home with more space.

    You’ll be able to offset some of the expenditures of having a vacation property if you can utilize it to produce rental income. Even if you’re hesitant to put money into real estate, owning a second home adds a useful asset to your portfolio that will help you develop equity through your mortgage payments.


  • You’ll presumably save money on housing when you go on vacation, but you’ll also be taking on a new mortgage with monthly payments. You’ll have two monthly payments to worry about if you’re still paying down your primary home’s mortgage.

    If you can rent out your vacation property for a portion of the year, you’ll have to take on the role of landlord, which may be time-consuming and costly.

    Furthermore, while a vacation house might be a significant asset, there is no assurance that it will rise in value, just like any other investment. If you’re approaching this with a financial goal in mind, you should probably take your time and calculate your predicted gains (or losses) on the property.

Let’s Get Started!

Are you ready to take that step and purchase a property in your favorite vacation destination? Allow us to assist you with your mortgage plans! Contact Mortgage Intelligence now and start your online application to get connected with one of the best mortgage brokers in Canada, Saif Abdulah.

We service the following areas in Canada:

Toronto, North York, Scarborough, Pickering, Oshawa, Ajax, Whitby, Etobicoke, Thornhill, Richmond Hill, Markham, Stouffville, Uxbridge, Vaughan, Concord, Woodbridge, Mississauga, Oakville, King City, Caledon, Nobleton, Milton, Aurora, Newmarket, East Gwillimbury, Keswick, Bradford, New Tecumseth, Georgina, Innisville, Guelph, Barrie, Ottawa, Orangeville, Collingwood, Kitchener, Hamilton, Cambridge, Waterloo, St. Catharines, Niagara Falls, London, Peterborough, and Ontario.

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