Are you thinking of buying a cottage or vacation properties?
Well, now thanks to a new product from CMHC, you can now borrow up to 95% on a second property (LTV)
CMHC will insure a property the borrower uses for vacation purposes as long as the property is occupied at some point during the year by the borrower, or by a relative of the borrower on a rent-free basis and meets CMHC's general property requirements including;
- The property is located anywhere in Canada and is suitable for, and available for, year round occupancy; and
- Properties located on an island must have year-round bridge or ferry access; and,
- The borrower's ability to occupy the property must not be restricted or limited at any time. Properties with seasonal use or access, time share interests, life leases, or properties in rental pools are not eligible.
Under CMHC's Second Home product, an individual can be a borrower/co-borrower on a maximum of two CMHC insured homeowner properties, including a vacation home which meets the above criteria. CMHC's Second Home product can also be used to purchase a home for a family member attending college or university away from home
For more information, please visit the CMHC website.
