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How Does a Cottage Mortgage Work?

Similar to a traditional home mortgage, getting a cottage mortgage involves submitting your financial documents and understanding what type of a mortgage you may qualify for. Dissimilar to a home mortgage, there are a number of additional factors that are taken into consideration when it comes to financing your dream cottage.

When it comes to cottage financing, there are two different types of cottage mortgages:

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    Is a Cottage Mortgage Right For You?

    Cottages like homes require maintenance, upkeep and can carry hefty tax bills. It is important that you work with a qualified realtor to ensure you understand the carrying costs associated with cottage ownership over and above the monthly mortgage fees. In addition, it is wise to see if there are any opportunities to get rental income on your cottage property as it is a very good way to offset some of the annual costs.

    If you have dreamed of owning a cottage you may be able to realize that dream sooner than you thought, but make sure you speak with a seasoned mortgage professional who an guide you in the right direction.

    Type A Cottages have the following criteria and are more similar to a home

    • Year Round Access
    • Fully winterized
    • Permanent heat source like baseboards
    • Potable water source
    • Permanent foundation installed below the frost line
    • 3 piece bathroom and a kitchen
    • Must be zoned residential , rural or seasonal (no rental pools or leased land)

    This  first type of cottage is easier to finance and most lenders will be willing to give you a cottage mortgage if you meet the listed criteria.

    Type B are also common and but have more restrictions around financing

    • Seasonal access
    • Floating foundation
    • Wood stove or fireplace heating
    • Running water (even if not potable)
    • Getting financing on a Type B cottage may require a larger down payment and certain lenders may not want to provide traditional funding. A  classic example of a type B cottage would be an island cottage where it is only seasonal access and has limited heating capabilities etc.

    Cottage financing also requires an appraisal which can be costly. Cottage appraisals are often more expensive than traditional home appraisals as they are more involved. Most cottages come with a larger parcel of land, multiple buildings, waterfront, boat houses, docks, septic systems and other items which increased the time needed to complete a full appraisal.

    Once you determine which type of cottage you are trying to finance, our qualified mortgage agents will help you find the right lender and mortgage product to fit your needs. There are numerous ways to find the right cottage mortgage and our team of professionals can help you sort out what the best solution is for you.

    • Working with a seasoned mortgage professional is essential to ensure you are getting the best cottage mortgage. At SafeBridge, our experienced agents are well versed in the cottage market and know the challenges and complexities involved in cottage financing.  Contact us today to see if you qualify for cottage financing and make your cottage dream a reality.

    The Benefits of a Cottage Mortgage

    • Owning a cottage can be a ton of fun, but it can be  a lot of work and often come with some unexpected expenses.
    • Working with a mortgage agent who understands the nuances of cottage mortgages is imperative. At SafeBridge we have helped thousands of clients purchase their dream cottage and we can ensure that you are getting the most flexible financing all while keeping your budget and goals in mind.

    Kate & her husband Ben had always dreamed of cottage ownership. They had their eye on a particular west facing property on Lake Rosseau and asked their SafeBridge mortgage agent to help with the financing. Their SafeBridge agent was able to help them refinance their Toronto home, pulling out $1M in equity which they put down on their new cottage. While the cottage itself needed a bit of work it was the perfect view and their forever piece of land.

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    Benefits of a Cottage Mortgage - SafeBridge Financial Group

    Why SafeBridge is the Safest Choice

    At SafeBridge our access to over 63 different lenders sets us apart. With over 20+ years in the mortgage lending space our team of mortgage professionals is qualified to help you find cottage  financing that suits your needs.

    No two cottages  are alike and we pride ourselves in customized solutions that solve your unique challenges with regards to cottage financing.

    When you work with SafeBridge, our team of professionals take the time to understand your situation and come up with the perfect financing solution.  It is always in your best interest to work with a company that will not only help you secure financing but also keep in mind your holistic financial goals and make sure they are all in alignment. As a company we help thousands of clients each year find the perfect financing solution to fit their needs. When it comes to cottage mortgages our team of exceptional  mortgage brokers will assist you with finding the perfect cottage mortgage and financing terms.

    Apply Online for a Mortgage With SafeBridge

    We want to help make your family’s cottage ownership dreams come true! Contact us today to find out how we can help get your cottage financing in order. Whether you are looking to purchase a new cottage, renovate an existing cottage or do a complete build from the ground up we are here to help!

    Apply Now
    Our Team - SafeBridge Financial Group

    Have Questions?
    We Have the Answers

    How is cottage financing different from a traditional home mortgage?

    Similar to a traditional home mortgage, getting a cottage mortgage involves submitting your financial documents and understanding what type of a mortgage you may qualify for. Dissimilar to a home mortgage, there are a number of additional factors that are taken into consideration when it comes to financing your dream cottage.

    Can I finance land?

    No, you need to put down at least a 50% down payment on land.

    Will I need an appraisal for a cottage mortgage?

    Yes, you will need to get an appraisal to get financing for your cottage. Cottage financing also requires an appraisal which can be costly. Cottage appraisals are often more expensive than traditional home appraisals as they are more involved. Most cottages come with a larger parcel of land, multiple buildings, waterfront, boat houses, docks, septic systems and other items which increased the time needed to complete a full appraisal.

    What if I own my cottage free and clear, can I still refinance and take out equity?

    Yes, you can put a cottage mortgage on a cottage with no existing mortgage. Speak with one of our mortgage agents to find out how.

    How much money do I need to put down for a cottage?

    Similar to down payments on primary residences, you will need to put down at least 5% up to $500K and 20% over $1M.

    Double Quotes

    Over the last 20 years we’ve been successful in attracting over 60 various lenders that our clients can benefit from. SafeBridge has evolved over the years and has become a very successful company…. The education, that comes along with not just the mortgage agent side of things, but also on the insurance and the investments and the financial planning all comes together in one holistic approach.

    Elisseos,

    Co-Founder
    Double Quotes

    For several years Andre has worked in the Financial Planning and Mortgage Solutions field with Scotiabank. After experiencing success, and gaining a wide knowledge base in the banking world, he decided to leave the bank to join a Boutique Mortgage Brokerage, Safebridge Financial Group.  Andre made the change so that he could offer clients a wider variety of mortgage options and lenders.

    Andre Persaud,

    Mortgage Agent

    SafeBridge Brokers & Advisors

    Meet the Team

    At SafeBridge we believe in experiencing growth together. We want to ensure that each of our agents is successful and feels a part of the SafeBridge team. We offer customized training, lender previews, team events and even team trips to build the strong culture of inclusion and support that so many of our agents enjoy.

    We believe it is essential to hire and Partner with the right people. We are looking for the best and brightest in the Industry to join our Exclusive Group of Professionals. Our team consists of loyal top producing Agents that have demonstrated exceptional care for their clients and passion for the industry in which they serve. Our Mortgage Centered Financial Planning approach helps our team foster long lasting relationships, which brings a unique process to the mortgage business.

    SafeBridge Partners
    Trusted by the
    Biggest Names in Mortgages

    With over 20+ years in the Mortgage Industry, SafeBridge has built a solid reputation in the industry and is well respected by all major lending partners. SafeBridge has partnerships with over 10 insurance providers in Canada and has access to hundreds of mortgage products.

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