Buying a second property or cottage: what changes

A second property is underwritten differently. Down payment requirements are typically higher, particularly for properties that are not winterised or not accessible year-round, and some lenders limit financing on water-access or island properties.

Insurance is also different, with vacancy provisions, seasonal considerations and sometimes required monitoring or shutoff of water.

Tax matters too: only one property per family unit can be designated a principal residence for a given year, so the gain on a second property is generally taxable when you sell. If you plan to rent it out, understand the municipal short-term rental rules and the reporting obligations before you buy.