The un-official start to the cottage season is here, and many Canadians are looking to the recreational property market to maximize their seasonal enjoyment.
According to a recent poll conducted on behalf of Mortgage Intelligence Inc. and GMAC Residential Funding of Canada Limited, one in seven Canadians (14%) currently own a vacation property and one in four (28%) would like to purchase a vacation property in the future.
The poll found that 54% of Canadians would like to pay down their vacation property mortgage in 15 years or fewer. This is particularly true of retirement-age Canadians, with 83% of those aged 55- plus preferring to pay down their mortgage within this time frame.
“A growing number of Canadians are factoring a vacation property into their retirement planning and are looking for flexible mortgage solutions that will enable them to buy the property they want and retire with financial peace of mind,” says Stan Falkowski, President, Mortgage Intelligence Inc.
In the past, financing for a recreational property has been more challenging than for a principal residence, as traditional lending institutions have found second homes to be a less than desirable investment. But as the recreational property market continues to grow across the country, fuelled by affluent Baby Boomers preparing for their retirement years, consumers are finding they have other options that provide the flexibility and payment options that will help them pay down their mortgage faster. With a recreational property mortgage like “irelax”, consumers can purchase a vacation property with as little as 15% down and take advantage of up to 20 per cent prepayment and up to a 20% increase in payments annually.
“Vacation properties are more than just a financial investment for most Canadians. They quite often become the spot where families come together,” adds Falkowski. “While recreational property mortgages are still relatively new to the market, a product like this provides an easy and affordable way to start a whole new string of family traditions.”
The poll was conducted by Angus Reid Strategies between May 9 and May 10, 2007 among a representative sample of 1,046 adult Canadians. The results are accurate to within plus or minus three percentage points, 19 times out of 20.
One in four Canadians aim to buy a recreational property: survey
Canadians factoring a vacation property into their retirement planning
- By: IE Staff
- May 16, 2007 October 31, 2019
- 11:50