Cottage and vacation home mortgages in Ontario
Financing a cottage, secondary residence or vacation home in Ontario depends on property access, winterization and water systems. Whether you are buying a year-round second home for family or a seasonal recreational property, I look for financing that fits the specific features of your property.
How do lenders classify second homes?
Year-round secondary homes
Fully winterized properties with a permanent heat source, year-round road access and potable water. Many lenders and default insurers allow as little as 5% down on these when the home is for personal or family use, subject to price limits.
Seasonal recreational properties
Seasonal cottages with seasonal road access, lake water systems or non-permanent heating. These often need 10% or more down, and fewer lenders will consider them.
Run your numbers
Work out the payment and the down payment for a cottage or second home.
What else do lenders consider?
- Down payment sourcingUse equity from your primary residence through a refinance or line of credit to fund the purchase.
- Water and septic checksFor properties without municipal services, lenders require water potability certificates and septic system inspections before closing.
- Rental restrictionsSecond home programs are intended for personal or family use, not for full-time short-term renting.
Questions, answered
What is the minimum down payment for a cottage or vacation property in Ontario?
It depends on the property and the lender. Many year-round second homes for family use can start at 5% down, subject to price limits, and seasonal recreational properties often need 10% or more. Rules vary by lender and insurer, so I confirm before you make an offer.
Can I refinance my main home to buy a secondary property?
Yes. Many buyers use equity from their primary residence for the down payment or the full purchase, which can simplify financing.
Related
Rules and figures current as of October 2026.