Monday, May 28, 2007

Cottage purchase and 5% downpayment

Seeing friends and neighbours packing up for the cottage certainly has many families dreaming..... With a downpayment of 5% it's possible to be packing up the kids & pets.

CMHC will insure a property the borrower uses for vacation purposes as long as the property is occupied at some point during the year by the borrower, or by a relative of the borrower on a rent-free basis and meets CMHC's general property requirements including;

The property is located anywhere in Canada and is suitable for, and available for, year round occupancy; and
Properties located on an island must have year-round bridge or ferry access; and,
The borrower's ability to occupy the property must not be restricted or limited at any time. Properties with seasonal use or access, time share interests, life leases, or properties in rental pools are not eligible.

Under CMHC's Second Home product, an individual can be a borrower/co-borrower on a maximum of two CMHC insured homeowner properties, including a vacation home which meets the above criteria. CMHC's Second Home product can also be used to purchase a home for a family member attending college or university away from home.

No additional premium surcharges;
No additional underwriting requirements

Enjoy your summer and hopefully a cottage purchase is in your future!

More on rates and financing

Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829

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