CMHC reports annual pace of housing starts in January down 10% from December + MORE Feb 17th

Canada Mortgage and Housing Corp. says the annual pace of housing starts in January fell 10 per cent compared with December.

What does it take to buy a second home in Canada? There’s a lot to consider, from figuring out whether you can afford to buy a second property (and whether it’s worth it) to navigating the down payment requirements and mortgage rules. To help you get started, we’ve answered these questions and more.

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Table of contents: Buying a second home

Second home or investment property: What’s the difference?

The rules for buying a second home in Canada

Affording a second home

The best mortgage rates in Canada

Financing your second home

The best HELOC rates in Canada

Is buying a second home worth the investment?

The tax implications of buying a second home

Second home or investment property: What’s the difference, and does it matter?

Generally, a second home refers to a real estate property that is owner-occupied, meaning the owner will be living in it at least part of the time…

If you have a mortgage on your home or have been trying to break into the housing market, you’ve probably watched interest rates go up, up, up over the past two years. Both fixed and variable mortgage rates have been higher than any other time in recent memory, leading many new home buyers and existing mortgage holders to choose fixed rates to avoid further increases. These rate hikes have also wreaked havoc for many home owners who locked into variable rate mortgages before rates started climbing, causing their monthly payments to skyrocket. 

It’s been a tough time for home owners (and first-time home buyers), but the Bank of Canada (BoC) has held interest rates steady since July 2023, and the latest economic data is leading experts to suggest that interest rate cuts may be on the horizon. So, what can Canadians expect from interest rates in the months and years ahead, and what does that mean for fixed mortgage rates and variable mortgage rates? We spoke to an economist and a mortgage broker to get a better sense of what’s ahead, and whether a fixed or variable rate is your best option in 2024…