Buying a Cottage

Dream of buying your own cottage? Understand your financing options. 

After buying a home, cottage ownership is often high on the wish lists of Canadian families. In fact, many of us dream of a weekend retreat to escape the hectic city, make memories with our kids or enjoy a peaceful retirement.

Whatever your inspiration, it’s a good idea to consider the financial implications related to owning a cottage, including your financing options, before you start driving along those country roads looking for ‘for sale’ signs

Most financial institutions offer financing programs for cottages or second homes. Depending on the type of property, you may be eligible to obtain financing for up to 95% of its value. For instance the 

Scotia Secondary Home® Financing Program can be applied to either Type A properties (typical residential properties) or Type B (properties lacking standard heating or year-round road access).

Your primary residence is another good place to look for financing for a cottage. For example, if you’ve built up some equity in your home, you may be able to utilize that available equity to achieve your goals. Depending on the amount of equity you have built up, with the Scotia Total Equity® Plan, you can borrow up to 80% of the value of your home to finance the purchase of your cottage.

As you research your options, remember to think about your full financial picture, since along with the cost of purchasing the cottage, you must also budget for other expenses like maintenance, property taxes and transportation. You may wish to consider how often you plan to use your new cottage and make sure it suits your lifestyle.

Remember that local real estate agents are a valuable resource to help you with planning and budgeting. They understand the market conditions and can give you good estimates of taxes and annual upkeep. Your real estate agent can also assess the rental market, if you are considering renting your new property to help with the carrying costs.

If owning a piece of paradise away from city life is on your wish list, you should talk with a Scotiabank Advisor for relevant financial solutions to help make that dream come true.

Suggested tools

Unlock your equity with STEP

Use the Scotia Total Equity Plan to tap into your home equity. You’ll save with lower rates and get the funds you need to reach your goals.

Mortgage calculator

Find out what your mortgage payments will be, so you can ensure your mortgage fits your budget.

Prepayment calculator

Find out what your mortgage prerepayment charge will be, so you can be mortgage-free faster.

Plan today for a secure tomorrow


Maintain the home and lifestyle you’ve worked hard to build.

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