Buying a vacation home or an investment property is different than the traditional homebuying process. Buyers who already have a primary residence may be surprised by some of the ways that mortgages, taxes, and interest rates vary between these two types of properties. Whether you're eyeing waterfront homes or a ski cabin, vacation homes can be great investments. Keep reading to find out what you need to know before buying.
Down Payment Differences
There are several down payment assistance programs that support first-time buyers, but the same programs rarely apply to second homes. For a vacation home, the buyer must put down at least 5 per cent down payment in order to secure a mortgage. Some lenders may require buyers to put down more.