Canadian Boat Insurance Companies
Mortgage Your Home Escape – Be prepared, then reap the rewards
When looking for property in Canada cottage country, researching the area and Pre-arranging mortgage financing can give you a real leg up on the competition.
According to the 2008 Royal LePage Recreational Property Report, the competition is out there and they are serious about this.
The survey found that 61% of cottage owners and those wishing to buy property Leisure feel that buying a home is a better long term investment than buying stocks, bonds or mutual funds. Young investors are also becoming more experienced. Nineteen percent of young professionals said they are planning or considering a home purchase.
Once you have committed to joining the ranks those seeking that little piece of heaven down to earth long enough to consider some factors that are key to making a good decision:
• Why? Answering this question will often provide answers to other fundamental issues. If, for example, you want to visit family and friends, the size of the house will have to accommodate that goal. zoning laws will you add to an existing cottage, if necessary? How is that taxes are affected?
• Where? How far are you willing to drive each weekend? You want a deep lake for your Boat activities, or a secluded spot on a remote lake to use as a getaway? Are you willing to make concessions in place to achieve your goal?
• You can access the property in the winter? This could be a condition of financing and insurance.
• You want to use tenants to offset the cost of the mortgage? This can affect your financing and insurance.
• Most importantly, the cost. How do you intend to finance the property?
If you finally find the perfect place on the lake, but leave the financing to be worked out later, someone armed with a pre-approved mortgage can be sitting by the fire beside your next lake summer – all because they did their research.
Financing a recreational property may be subject to stricter conditions than a primary property, mainly due to the risks involved. This is something that needs to be discussed with your financial adviser as conditions may be unique to the type and location of his property. Also, if you decide to obtain mortgage financing over 75% of the price of the property may require the use of any CMHC or Genworth mortgage insurance. Home insurance companies also vary in their needs when it comes to insurance for second homes. Having this knowledge in your pocket before starting his research may help pave the way for a better buy.
With Canada's retail banks tighten their belts in response to the recent crisis in U.S., obtaining a mortgage for a second property of a conventional lender would become much more difficult. However, the existence of knowledge, creditors alternative, such as mortgage brokers licenses, buyers should not be prevented from taking advantage of the excellent mortgage rates, and increasing the supply of recreational properties.
About the Author
For more information on
mortgaging your cottage
contact our
mortgage centre
at www.canadianmortgagesinc.ca
Nanaimo Ambassadors, Canada
