Secondary Homes: You Can Buy a Cottage with a 5% Down Payment

If you have ever wanted to own a cottage, care for your aging parents that live far from you or save housing fees while your children are at university we have good news for you!

Secondary Homes are a possibility.

As a result many people have lost track of the various mortgage programs available to home buyers. The good news is that there are still great programs available for all types of residential properties. Secondary homes, in particular, are the least understood and yet these properties can either save you money or enhance your lifestyle.

How is this possible?

A secondary home can be defined as a property that is:

  • Not rented out
  • Not a principal residence
  • Can still be purchased with the same minimum down payment as a primary residence

This means that a family living in Oakville can now buy a cottage with a small down payment of 5%. Because the minimum down payment required is less than 20%, the mortgage will be insured. Mortgage insurance premiums will apply and can be added to the mortgage.

Secondary Homes: You Can Buy a Cottage with a 5% Down Payment

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Here are the Secondary home program guidelines:

  1. Marketable, residential dwelling are equipped with all year access for all four seasons.
  2. Maximum one unit and must be owner occupied or occupied by an immediate family member.
  3. Secondary homes cannot be rented out.
  4. No interest rate premiums over principal residences.
  5. Same minimum down payment requirements as a principal home. Minimum 5% down payment.

Examples of Secondary Homes:

  • Buy a vacation home such as a cottage.
  • Buy a home for your parents or a family member in need of care.
  • Purchase property close to your children’s university. This will save you money on residence fees while they study.
  • Own a property where you often travel for business. This will save you money on hotel costs.

Remember that mortgage rules change constantly and not all properties qualify so reach out to us and we will explain the programs and pre-qualify you.


  1. Mortgage rules are subject to change.
  2. An immediate family member is defined as a father, mother, child, brother, sister, grad parents, legal guardian, or legal dependent.