Can I afford to buy a second home? + MORE Sep 26th

Over the past week, nearly all of Canada’s Big-6 banks have increased their shorter-term fixed mortgage rates.

There are plenty of reasons you may want to buy a second home. Maybe you’d like a second property for a family member to live in (e.g., your daughter while she attends university) or a condo to stay in during the week when you’re working downtown. But can you afford it?

“Before you buy a second home, you want to figure out what you’re trying to achieve—your goals and objectives,” says D’Arcy Henneberry, president of online mortgage brokerage MortgagePal.

Each lender has its own mortgage qualifying criteria, including how they look at your income and debt obligations, he says, so your first step should be speaking to a mortgage broker or financial advisor about your needs and financial situation.

That said, when it comes to affording a second home, here are the general rules and requirements to keep in mind.

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