USBuying a Second Property
What you need to know if you’re looking to finance a vacation home or purchase a residential investment property.
Why get a second property?
You may be looking to finance a vacation home or purchase a residential investment property. Both of these home ownership goals can be achieved through a variety of financing options.
- You can apply for a new mortgage loan secured by the second property.
- You could refinance your existing mortgage loan to access the equity that you have built in your primary home.
- You may want to consider a TD Home Equity FlexLine which offers the flexibility of a line of credit with the stability of a term portion.
Mortgage Payment Calculator
Budget for a second property.
See what your mortgage payments could be and discover ways you can save money.
Your second property: what you need to know
- A high ratio mortgage is available if you or family members plan to live in the home, on a rent-free basis.
- Investment properties are not eligible for high ratio default insurance-a down payment of at least 20% is required.
- There may be unit limitations of up to 4 units on a rental property.
- The Canadian Home Buyers Plan for using RRSP's is not eligible on a second property.
- Some costs are much the same as your first purchase: valuation fees, legal fees, and a title search.
Ready Advice
If a buyer’s deposit is less than 20% of the purchase price (or value of the property, whichever is lower) the mortgage must be insured against payment default by a Mortgage Insurer, such as CMHC.
Other useful information
Choosing a Home
House, condo, or pre-build. Tips to help you choose a home that's right for you.
Mortgage Pre-approval
Get an immediate response to your online application.
Let’s connect
Found your dream home?
If you've made an offer, complete your mortgage application online now!
Phone
Ready to start your pre-approval? Have a TD Mortgage Specialist call you.
Book an appointment
Visit a branch at a time that’s convenient for you.
Too busy to visit a branch?
Meet with a Mortgage Specialist at your home, workplace, coffee shop, or other convenient location.
Ready Advice
A Down Payment is the amount of money you have towards purchasing your home. Many homebuyers make down payments of 5% to 20% of the total value of the home. The purchase price minus the down payment is the amount that generally requires financing from a bank or other financial institution.
Ready Advice
A TD Home Equity FlexLine is a Line of Credit that is secured against equity you have in your home. It offers both revolving and fixed components.