Buying a Second Home, What You Can Really Get Away With…

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Buying a Second Home

The truth about buying a second home. Buying a second home is becoming more and more common today. Some want the best of  both worlds and buying a second home gives them that. Today we see a lot that buy a second home to save on the commute during the week.

At Genworth, we know that today’s busy lifestyle requires more home ownership options – whether it’s a second home in the city to reduce that weekly commute, or a cottage at the lake for weekend getaways. With our Vacation/Second Home Program, Canadians can now purchase a second home or cottage with an affordable monthly payment with 5% down payment. Take a look at this article:http://genworth.ca/en/products/vacation-secondary-homes-program.aspx

Buying a Second Home
Buying a Second Home

Buying A Second Home – Acceptable loan purpose

* Second homes (Type A) available for purchase and refinance
* Vacation homes (Type B) available for purchase only
* Program does not provide for the purchase of investment, rental pool or timeshare properties; therefore, incidental rental income will not be used for qualification purposes.

Loan -to-value ratio limits

* Type A properties: 95% LTV (Purchase) and 90% LTV (Refinance)
* Type B properties: 90% LTV (Purchase).

Buying a Second Home
Buying a Second Home

Buying a Second Home – MAX LOAN AMOUNTS:

* Type A – Maximum loan amount: Metro Toronto, Metro Vancouver and Metro Calgary – $700,000; rest of Canada – $600,000
* Type B – Maximum loan amount: $350,000 (exceptions will be considered on a case by case basis)

ELIGIBLE PROPERTIES:     (Refer to the Property Type Schedule)

Type A Properties (Second Homes):

* Property characteristics must comply with the Genworth First Mortgage Owner Occupancy Program
* Up to two units Maximum
* Available for purchase and refinance

Buying a Second Home
Buying a Second Home

Type B Properties (Vacation Homes and Cottages):

* Property characteristics same as Type A properties except for the following;
* Property need not be winterized
* May have seasonal access (road not plowed during winter)
* One unit maximum
* Available for purchase only

Make sure you understand your buying power and rules about buying: http://yourmortgagedoctor.com/cost-of-purchasing/

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