Commonly Asked Questions
The minimum down payment for a second home mortgage is 5% of the property’s value that is under $500,000, and if the property is worth more than $500,000 then the minimum down payment must include 10% of the value of the property greater than $500,000.
The mortgage rates for a second home mortgage are typically higher than for a primary mortgage. This is because they are considered to be a higher risk for the lender. The larger your down payment is and the better your credit score is the more favourable your mortgage rate will be.
To get approved for a second home mortgage the lender will assess the property and your financial situation. You will need a down payment and the lender will need to know about your employment and your credit score. The minimum credit score will typically be at least 600 but many lenders will require higher than that.
A second home will generally be required to be a certain distance from your primary home, this can differ depending on the lender but typically 50 miles away is considered far enough. If the home is too close to your primary home it may be considered as an investment property which will have different mortgage criteria.