Buying a Recreational Property - Living at the Lake

Buying a Recreational Property - Living at the Lake

Posted by Tara Kennedy on Thursday, October 1st, 2020 at 12:03pm.

 Buying a Recreational Property

Spending time at a cottage or recreational property can be a great idea. Not only do you have the conveniences of home, but you feel you are on a vacation whenever you need to get away.

However, there are a few things to consider when looking to purchase a recreational property.

  • Can you financially afford a second property? Ensure that you have a solid plan in place, and know where the down payment will be coming from. 
  • How will you make the monthly mortgage payments? Will the monthly payments leave you house poor, or will you be able to save enough for repairs, maintenance, and enjoying life? 
  • Keep in mind that CMHC will not allow anyone to take advantage of their program when buying a second property. The funds for the down payment are the responsibility of the purchaser. 
  • Check with your financial institution/mortgage broker about what options are available with regards to having two properties and two payments. Determine what will be the easiest for you. 
  • Make sure you understand that the lender might have a few different rules when purchasing a vacation property. Because it’s a recreational property, the interest rate might be a bit higher than the mortgage on your primary residence; plus, they may treat the property differently depending on if it’s a year round or seasonal cottage. 
  • Out of country recreation homes will have other rules attached to them depending on the country. If you purchase a cottage in the US, be aware of what taxes need to be paid, and what rules and regulations are in place. Also, be aware of the amount of time you are allowed to spend per year in another country.





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