The Insured Secondary Homes Program is a popular one this time of year.  You may be dreaming about owning a lake front cottage or condo in one of your favorite local holiday spots.

Or perhaps you, like me, have children making plans to head off to University in the fall – and those tuition and residence fees are adding up fast!

As a qualified buyer, you can purchase a second home as a recreational property for yourself or as a home for an immediate family member (university student child, elderly parent etc) with as little as a 5% down payment.

These properties are considered ‘owner occupied’ by the lender and insurance companies, are subject to standard insurance premiums and the very best rates on the market.  Because rental income cannot be included in the application process for qualifying purposes, applicants must be strong financially and have unblemished credit.

Second homes for a family member are most commonly properties purchased for children, perhaps while in university or to help out during a difficult divorce.  It is also a common program for purchasing a home for a senior parent who may be retired on minimal pension income unable to secure a mortgage.

If you don’t quite qualify on your own for a second home, you may consider co -purchasing with friends or family. For example, siblings can pitch in together to buy a home for mom and dad with 5% down.  Good friends can pool their resources to purchase a property with 5% down for their kids who attend University together to save on residence fees.  These are just some of the many possible scenarios that would apply to this program.

For a vacation or recreational property there must be reasonable security for the mortgage lender. The property must be located in Canada and this program cannot be used for time shares or rental pools. If the property is not fully serviced , winterized, or does not offer year round access , larger down payment requirements will apply.

Call anytime if you would like to chat further or run numbers,  I appreciate hearing from  you and am always grateful whenever  you recommend me.