Canadians still pursuing recreational property as second homes

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Despite the fact that a second home requires a higher down payment, almost half of Canadians are still considering buying a recreational property according to a nationwide survey of Canadian attitudes towards recreational property ownership conducted by Angus Reid and commissioned by Royal LePage Real Estate Services.

Lifestyle is the number one reason cited from buyers who want recreational property. And the new Canada Mortgage and Housing Corporation regulations don’t seem to be a barrier. The changes will require Canadians to pay a minimum 20 per cent down payment on any residential or recreational property they purchase that is not their primary home.

But Canadians are concerned about tax increases that might affect their ability to buy vacation properties. Forty-nine per cent of respondents say they are concerned about new taxation rules such as the HST on new-construction homes while 46 per cent express concern about increasing property taxes.

"Canadians are generally confident about buying recreational properties because they see a pay off in terms of improved quality of life," said Phil Soper, president and chief executive, Royal LePage Real Estate Services. "The survey results show that tightening of lending requirements for second homes, coupled with an increase in taxes and expectations of higher interest rates, may have a dampening effect on the recreational property market. However, there continues to be strong demand for second homes, and Canadians appear prepared to make significant investments in order to enjoy their leisure time."

  • CMHC 2nd Home on 2010-06-01 2:37:22 AM

    This article provides incorrect information. Per the recent Department of Finance changes, only 'Revenue' producing properties require a minimum 20% down payment. This change by the Department of Finance, did not impact the CMHC Second Home Product. Second Homes can still be purchased with as little as 5% down. The one caveat being, the property can only be a 1-unit property, must be 'owner-occupied' & the property must be suitable & available for year round living.

  • Nick Mitskopoulos on 2010-06-02 1:39:17 AM

    HI-- there is incorrect info in your article- under CMHC one can purchase a second home or rec property with 5% down- i just called CMHC to confirm.( see your article below I have sut and pasted )

    Pls let me know where you received your info
    nick@mortgageforless.com

    Nick Mitskopoulos


    "Lifestyle is the number one reason cited from buyers who want recreational property. And the new Canada Mortgage and Housing Corporation regulations don’t seem to be a barrier. The changes will require Canadians to pay a minimum 20 per cent down payment on any residential or recreational property they purchase that is not their primary home. "

  • AB Mortgage Broker on 2010-06-02 3:47:03 AM

    Guys- if you recall, prior to April 19/10 CMHC came out and said exactly what this article is stating. The mainstream media doesn't report positives because it's the doom and gloom that sells. I'm not suggesting that is the case hear, in fact, we all know the writer is misinformed. If the media had reported the reversal of a previous CMHC decision, perhaps the writer would have got it right.

  • M on 2010-06-02 9:03:11 AM

    Genworth insures 2nd homes and recreational properties to 95% of the value. They also insure Type B properties to 90%. Type B properties can be a cabin on an island or on a lake with only boat access. Check genworth.ca and review your products.

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