Cottage financing from lenders who know lakes
Cottages come with wells, septic systems, seasonal roads and water access. Plenty of lenders get nervous. Mitch knows which ones finance recreational properties and how to set up your file so it goes smoothly.
What happens next.
Hover a step. Every file is different, but this is the path.
Talk property first
Year-round access, heating, water and septic decide which lenders are in play, so we start there.
Pre-approve for the right type
You get a pre-approval that fits the kind of property you're actually looking at.
Condition your offer
We help you build in time for well water testing, a septic inspection and financing, which cottage deals need.
Appraise and close
We work with appraisers familiar with recreational properties and handle the lender conditions to closing.
Is this you?
- Families buying a cottage to use themselves
- Buyers looking at waterfront, island or rural properties
- Anyone buying a ski chalet or vacation home
- Cottage owners who want to rent it out part of the year
- Existing cottage owners refinancing or pulling equity
How we can structure it.
Year-round second home
Winterized, with year-round road access. Insured second-home options may allow a smaller down payment.
Seasonal cottage
Three-season or limited access. Fewer lenders and usually a larger down payment.
Island and water-access
Boat-access properties need specialist lenders and a bigger down payment. Mitch knows who to call.
Equity from your home
Use a refinance or HELOC on your main home to fund the cottage down payment, or buy it outright.
Mortgage payment calculator
See your payment at any price, down payment and amortization, with default insurance and land transfer tax built in.
- Mortgage amount
- Default insurance (added)
- Total interest over amortization
- Ontario land transfer tax
Estimate only, using Canadian semi-annual compounding. Example rates are for math, not an offer. Your actual rate and APR depend on your approval.
What you'll need
- Government-issued photo ID
- Income documents: pay stubs and job letter, or two years of NOAs
- Mortgage statement for your main home
- Down payment statements
- Listing with property details: access, heating, water and septic
- Well water test and septic inspection, once you have an offer
Don't have it all yet? Start anyway. We'll tell you exactly what's missing.
Worth knowing first
- Seasonal access, wood heat only, or no permanent foundation can limit lenders and raise the down payment needed.
- Lenders count the payments on both your home and the cottage, so plan for qualifying on both.
- Rural appraisals can take longer and come in lower if there are few comparable sales nearby.
- Rental income on a cottage may count in limited ways only. Don't assume it will carry the mortgage.
Good questions.
How much do I need down on a cottage?
It depends on the property. A winterized, year-round home may qualify for insured second-home options. Seasonal or water-access cottages usually need 20% or more.
Can I rent out my cottage?
Often, yes. Some lenders will consider rental income, but it's usually limited. Tell Mitch your plans upfront so the right lender is chosen.
Why does the well and septic matter?
Lenders want to know the property is safe and livable. A water test and septic inspection protect you and keep the approval on track.
Can I use my home equity for the cottage?
Yes. A refinance or HELOC on your main home can fund the down payment or the full purchase, if you qualify for the combined payments.
See your options in 60 seconds.
No credit check. No obligation. Then book a free call with Mitch.
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Investment Properties
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Refinance
Tap your equity, restructure your mortgage, or lower your monthly payment.