Second Home Mortgage Lenders in Mississauga
Purchasing a second home is not an impossibility. With a thriving market, many Canadians are taking the plunge and making their second home dreams a reality.
Many people enjoy the idea of having a part-time home that you can go to whenever you please. If there is a destination that you often visit, then buying a second home there would be an excellent option for you. That way, you can stay as long as you’d like and save money that would otherwise be spent on hotels.
If buying a second home seems out of reach, the possibility is more likely than you think. In Ontario, there are many types of real estate options available. At sMp Mortgages, we partner with some of the most competitive lending agencies to ensure that you are getting the best rate possible. Whether you’re looking for a weekend getaway home or one that’s year-round, we can help you track down the financing necessary to make your second home a reality. You’ll need to be aware of factors such as budget, insurance, maintenance, and location.
Take Your Budget into Account
We all know how important a budget is for financial planning. It’s especially vital to budget for two mortgage payments if you are thinking about purchasing a second home (unless your first one is already paid off). One factor to consider is the down payment — for a second home, you’ll need to make a higher down payment as it is known as an increase in risk for mortgage investors. That way, they will be better able to determine if you can afford the property. However, with a higher down payment, you can expect a lower initial rate in advance of the adjustment when the end of the fixed period occurs.
The Right Location is Crucial
If you are seriously considering investing in a second home, you’ll want to choose the right location. The reason for this is that you want to be in an area that feels like you’re escaping from the world; however, you don’t want to be too far and aren’t able to get there often enough. If you intend to have many guests, then choosing a location that’s easy for everyone to access is a solid plan.
Maintenance is also a crucial component of investing in a second home, so you’ll want to be close enough to handle any impending issues.
What kind of maintenance issues can you expect with a second home?
When purchasing a second home, you won’t want to go overboard with utilities if you’re not always going to be there. One way to practice proper maintenance is by shutting down your services whenever you’ll be away for a long time.
Is Homeowners Insurance more expensive in a second home?
If you’re curious about homeowner’s insurance and whether it will be more expensive for a second home, it will be. The reason for this is that the property won’t be occupied at all times, which can cause risks for maintenance issues or potential theft.
It also depends on your location — if you are in a more remote area with lots of nature, then there could be an extra risk for damage to your home.
Despite the extra costs and maintenance, many people enjoy the luxury of having a second home to have a “home away from home.” If you want to take the next step and start purchasing your second home, the team at sMp Mortgages can help. We are one of the top mortgage lenders in Ontario, and we provide an efficient mortgage experience. That way, our customers can better understand the process and feel positive about choosing the solution that works for their unique interests. For the past 10 years as a collective, the sMp Mortgages team has a strong track record for customer satisfaction, and we are proud of this accolade.
If you are considering buying a second home, get in touch with us today, and we can set up a time to meet to guide you through this process. Give us a call today at 1-844-MY-PLAN, email us at email@example.com or fill out the contact form on our website.
We look forward to making your second home dreams into a reality!