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Investin in a Cottage


If you’re considering buying a cottage in Canada and have been watching the market, you already know this market segment has seen a surge in competition between buyers over the last decade. In recent years, cabins and cottages have been in high demand, as interest in renting out personal properties for extra income has become more accessible through various online platforms.

While purchasing a cottage as a recreational property or even as a year-round home can be an excellent investment in both the short and long term, there are some important factors to consider during your hunt for the perfect getaway home. Below we break down five important factors to consider when purchasing a recreational property

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Image by Victor

Cottage Mortgages


2 Types of Cottages:

Types A & B


There are essentially 2 types of cottages: lenders call them type A & B.

Type A Cottages: Type A is a cottage with year-round access, a winterized home with a permanent heat source and potable running water set on a permanent foundation below frost line.

Type A cottages can be mortgaged similar to mortgaging a permanent residence, minimum 5% down payment, fixed and variable terms with eligibility to refinance once equity has built up.

Type B Cottages: Type B is a cottage with seasonal access, no permanent heat source yet has running water and sits on a floating foundation (concrete blocks or pilings). Type B cottages can be mortgaged with a minimum 10% down payment, fixed and variable terms as well.

As always, if you have any question please don’t hesitate to call us.

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