If you’d like to purchase a second home with less than 20% down, the property would need to meet certain criteria. Thanks to our good buddies at www.genworth.ca, here’s a list that you can use to see if you’re good to go. The Type A properties can be purchased with 5% down, while Type B properties need a minimum of 10% down.
This is not a way to purchase a rental property for less than 20% down guys…so don’t ask;)
Eligible Properties:
Secondary Homes (Type A):
- Maximum 1 unit
- Property must be owner occupied or occupied by an immediate family member
- New construction covered by a lender approved New Home Warranty Program
- Existing resale properties
- Readily marketable residential dwellings, located in markets with demonstrated ongoing re-sale demand
- Estimated remaining economic life of the property should be a minimum of 25 years
Vacation Homes (Type B):
- Property characteristics same as Type A properties except for the following;
- Maximum 1 unit
- Property need not be winterized
- Seasonal access permitted (road not plowed during winter)
Ineligible properties
- Investment properties
- Rental pool / timeshare properties
– See more at: http://genworth.ca/en/products/vacation-secondary-homes-program.aspx#sthash.PLOM3ePc.dpuf
