Many Lenders offer mortgages for your Cottage/Recreational purchase in Ontario.  In some cases, you can purchase a cottage with as little as a 5% down payment.

However, make sure you work with a mortgage agent/broker who can help you choose the right property because not every cottage will qualify for a mortgage. The guidelines for Cottage/Recreational purchases are often more complex than for most home purchases.  In Summary there are two types of Cottage/Recreational Properties.

Type A Cottages must meet the following guidelines:

  • Year-round access
  • Fully winterized with a permanent heat source 
  • Potable water source
  • 3-piece bathroom and a kitchen
  • Permanent foundation installed below the frost line
  • Zoned residential, rural or seasonal

Type B Cottages: many Cottage/Recreational properties will fit into the Type B category. If buying a Cottage/Recreational property in Ontario that is Type B, be aware of the restrictions.  You will likely need a larger downpayment (minimum of 10%) from your own resources and your maximum loan allowed is less that Type A Cottages.

I’m here to help.  Please reach out to me if you are considering purchasing a Cottage/Recreational Property.