The distinction as to which is easier to finance will depend on the property and the strength of the credit and financial profile of the applicants.
For instance, if you’re wanting to purchase a vacation home in the Muskoka’s North of Toronto, if the property in question is on year round road access and is fully serviced with power, heat, and water, then then it can be financed as an additional mortgage property under most residential home mortgage programs in addition to your primary residence that also has a mortgage in place.
The key for this scenario is going to be the applicants ability to qualify for debt servicing for both mortgages. As long as you’re making a high enough income and your credit meets the minimum requirements, you most likely can get a highly competitive residential mortgage either on an uninsured basis or through programs utilizing insured mortgages for higher loan to value requirements.
When you are looking at properties that could not be considered type “A” cottage or vacation home properties where there may not be year round access or the living unit does not have a heating system, it will be more difficult to find the same exact type of financing that you have on your primary home.
Vacation home financing for “B” type cottage properties can still be procured, but likely at slightly higher rates and potentially not as high loan to value ratios either.
Once again, depending on the property, you may be looking more at home equity loan programs or private mortgage financing options.
If you’re looking into vacation home financing, we suggest that you give us a call and book a time where we can go through your situation and provide vacation home financing options for your consideration.