SERVING Ontario, Canada
Darlene Chung-Ying
Mortgage Agent Level 2
C (416) 316-3101   P (416) 316-3101
Email mortgages@chungying.ca

Thinking about a Vacation Property?

Start by weighing the pros and cons.

Choosing to own a vacation property or second property can offer you many exceptional advantages (especially now with today’s remarkably low mortgage rates), as well as potential disadvantages.

Pros

Great investment
Real estate has always fluctuated, but historically it has risen in value, especially in popular areas with limited availability.

Rental income
If you choose to rent, you can benefit from additional income. If you also use the property personally, you may be eligible to deduct operating expenses and potentially benefit from tax deductions.

Retirement test drive
It can also enable you to experience the benefits of retirement ahead of time, to see if the reality lives up to the dream in regards to location, amenities and lifestyle.

Convenience
Being able to have all your ski gear or summer wear already stored in your vacation property allows you to take holidays at the drop of a hat without the hassle of all that extra baggage.

Cons

Upfront Fees
Depending on where you choose to buy, it is likely to cost more than to rent. You will also have the costs of furnishing and decorating to add to your budget.

Mortgage Costs
You may find that the percentage of down payment on the mortgage will be greater on a vacation home than your first home, often requiring a 20% to 30% down payment. Interest rates may also be higher.

Upkeep Expenses
You’ll also want to consider on-going maintenance costs. Just like your main home, there are always things to fix or update, trades to organize and meet. Holiday time could sometimes be a lot of work.

Justifying your investment
Because you have made the investment, you will likely feel obliged to visit your holiday home as much as possible, rather than explore other places. Be sure you will love it in the future as much as you do now.

As with any major purchase, it’s best to weigh the pros and cons so you can make an informed decision. Why not consider talking with an independent Mortgage Broker with Mortgage Architects, someone who can help you look at all sides of owning a vacation property.

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TODAY'S RATES

TERMPOSTEDMA RATES*
6 mo.7.897.49
1 Yr.7.745.54
2 Yr.7.345.39
3 Yr.6.944.64
4 Yr.6.744.64
5 Yr.6.794.54
7 Yr.7.105.40
10 Yr.7.255.80
Variable4.55

Subject to change. Conditions may apply.
Updated: 1/2/2025

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TESTIMONIALS

I recommend Darlene Chung-Ying because she is knowledgeable, understanding, respectful, trustworthy, and thinks outside the box to meet her client's needs.  She has supported me for many years in all financial matters. She responds quickly to inquiries and is always truthful. Darlene helped me to get my credit back on track.  She visited and called me multiple times to help me set up my budget, explain it to me, and just to check in to see how I was managing. During my change in circumstances, Darlene helped me save my home when the bank I dealt with for 18 years would not.  She was nonjudgmental, very understanding, and supportive.   Darlene, helped me to understand about investing and how the market works.  She helped me identify what my financial goals were and how to achieve them. She helped me to move my investments to a profitable portfolio based on my identified goals. For the past 3 years, I have turned to Darlene for all my financial needs.  No matter how small the issue, I always seek her guidance. Darlene has never failed me and I am confident she will do the same for you.

Dahlia Tomlison

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Updated: 01/22/21
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