buying a vacation home
While recreational property may seem out of reach for many, there are mortgage strategies to help you acquire a cottage for your family to enjoy, for a lifetime.
Whether your preference is a cottage or resort condo, in most cases you should be able to obtain mortgage financing on a second home at a rate that is competitive with what you are paying on your principal residence.
When qualifying for vacation home financing, the lender will simply add the new mortgage payment onto your total monthly debt payments – if these do not exceed 40% of total monthly household income, the loan will most likely be approved.
About one third of those who have a secondary home use their properties as an income-producing vehicle. In the case of a vacation property that you intend to rent out most of the time, the lender may deduct the rental income from your total monthly debt payments – an Invis mortgage advisor can let you know about a particular lender's policy on rental income.
A vacation home is more than just a luxury item – it can be a solid real estate investment that appreciates over time. Best of all, you'll have a retreat that offers peace and tranquility not often found in the city.
