What you Need to Consider Before Purchasing your Vacation Home
There is little more appealing than a second property that provides a getaway from your hectic city life; a place to host family and build memories; and an investment from which rental revenue can be generated during the weeks or months you won’t be using it. But before you take on a dream that ends up a costly burden, think over the following steps when researching for the purchase of your home away from home.
How will you Pay for it? Is it better for you to refinance your current mortgage, take out a Home Equity Line of Credit on your current home or apply for a completely separate second mortgage? Discuss your options with a reputable mortgage broker or financial adviser and be sure to pick the option that will see you attain the lowest mortgage rate possible, and pay the least amount of taxes. Before you cash in an RRSP or other investment to come up with a down payment, examine your equity take out options.