Is cottage living calling your name?

Owning a cottage is a perfect way to escape, relax, and build lifelong memories. Whether you’re looking for a seasonal getaway or a year-round retreat, financing a cottage can differ slightly from a primary residence.

As your mortgage broker, I’ll help you navigate the unique requirements, explore flexible financing options, and secure a mortgage that works for you. From understanding down payment requirements for the different types of cottages to finding the right lender for you, I’ll handle the details so you can focus on finding the perfect cottage.

Two red Adirondack chairs on a wooden dock facing a calm lake at sunset, with a small table holding a decorative spherical sculpture, and trees across the water.

  • The type of cottage and how you plan to use it will influence your mortgage options. Lenders categorize cottages into two main types:

    • Type A Cottages (Four-season cottages): These are year-round homes with insulation, heating, and access to utilities like water and electricity. Lending on these are fairly straight forward.

    • Type B Cottages (Three-season cottages): These tend to have limited access to utilities, may not be insulated for winter use. These properties can be financed with as little as 10% down with best interest rates!

  • Down Payment Requirements
    Cottages often have different down payment requirements than a primary residence:

    • For a Type A Cottage, financing is treated as a regular home - so you could get funding for as little as 5% down.

    • For a Type B Cottage, lenders often require a minimum down payment of 10% but still offer best rates for these property types

  • The cottage’s location can affect financing options and down payment requirements. A cottage on a small island, or a property that doesn't have winter access from a plowed road may require the cottage to be considered Type B. This isn't the end of the world it is just important to know before you buy.

  • Cottages don't have to be expensive, but making sure that you are looking into things like property taxes and insurance costs which can be higher for remote or seasonal properties. It’s essential to factor these into your budget when considering mortgage affordability.

  • It is amazing how many people we help who don't think traditional financing is possible for their cottage. Even if your cottage doesn't fit with traditional guidelines we will work with you to explore all funding alternatives if necessary.