Overseas buyers in particular may find that the process of obtaining a mortgage to finance the purchase of a vacation home is quite different to how it works at home. The procedure is more formalized, with less opportunity for the lender to apply any discretion. If the numbers add up, financing is straightforward. If they don't things can get complicated or even impossible to resolve.


Property financing is often based on long term loans, commonly 30 years. This is not dependent in any way on the age of the purchaser. In the USA, the loan is considered as being attached to the property rather than to the borrower.


The first stage in working towards financing a purchase is to discuss terms and qualification, either with a mortgage broker or directly with a potential lender. There are two distinct processes here:


  1. Pre-qualification. The borrower does not need to produce any evidence to support the financial information he offers.

  2. Pre-approval. The lender will ask for suitable documentation to support a firm offer of a loan.


Canadian and overseas buyers may currently be able to get up to 70% financing based on the appraised value of the property (which may be less than the selling price). US buyers will usually need to put down a 20% deposit. At present no financing is available from major lending institutions on either condos or townhomes on resort communities, but I have several sources of financing from secondary lenders and investors. Ask me for details if you are considering buying a condo or a townhome on one of the vacation home communities.



Denis Le Marchant-Smith,
Exclusive Buyer Agent, Owner/Broker, Graduate, Realtor© Institute

This website is produced and maintained by Denis Le Marchant-Smith, real estate broker with Hightower Realty. Please contact me if you have any questions about this community or to report errors, broken links, etc.