Its no surprise in recent months people in general, including clients of ours are looking for outside activities - and that includes spending time at the cottage and perhaps even looking to purchase a cottage.
With a long weekend past us, many people spent time at their families, friends or rental cottage and are curious what buying a recreational property looks like.
So here is the scoop:
The Property
Type 1: Is it zoned and used as residential, rural or seasonal; central heating, year round access?
Type 2: Central heating not required, seasonal road access is acceptable.
Down Payment
For Type 1 properties you could purchase with as little as 5% down or as much as you like. For Type 2 properties you are required minimum 10% down.
Property Eligibility:
For the property to be eligible to owner or family member must plan to occupy the property on a rent-free basis at some time during the year.
-some lenders restrict islands, others do not
-must have a clean water filtration system
-Appraisal may be required for Type 1 properties and is always required for Type 2 properties.
The best course of action is to send the listing to our office. Options and choice is very important when buying a cottage. We love to work with lenders local to the area be it a credit union or bank with a retail presence. We like working with local realtors, appraisors, inspectors to give the client the best team possible to surround themselves to obtain the best financing. Recreational properties can have uniquenesses to the area.
With our brokerage having local experience living, building and lending in the area our team is a great fit to help coordinate the financing of your recreational property. We also, help finance cottage properties be it speculative or for principal residence both on mainland and on and island.
As a mortgage broker that has bought, sold and built in Muskoka - helped finance land acquisition and construction as well as successfully lent on islands and to builders along with our regular day to day customers and referral partners buying their recreational home - we are the perfect brokerage to help with your next cottage purchase.