Cottages and other vacation property mortgages are available at low interest rates with creative mortgage products. These innovative ways make getaway homes a beautiful reality. Due to typical locations of vacation homes, being near the water for example they require higher down payment than homes in urban areas because of the higher risk.

With that said, most Ontarians prefer to refinance their primary residence to put a higher down payment toward the purchase of the vacation property. It is worth mentioning that some vacation homes depending on the lender cannot be used for rental purposes or as investment properties. However, this does not prevent many Canadians from renting out their vacation homes using popular apps and websites to make extra income.