Financing Your Second Property in 2026
With home equity at historic highs and rates normalizing in 2026, many Canadians are exploring second property purchases.
Understanding Your Equity Position
Equity Calculation:
```
Current Home Value: $800,000
Current Mortgage: $400,000
Available Equity: $400,000
Accessible Equity (80% LTV): $240,000
```
Financing Options
Option 1: HELOC for Down Payment
- Access up to 65% of home value
- Interest-only payments on what you use
Option 2: Refinance First Home
- Cash-out refinance up to 80% LTV
- Fixed payment, lower rate than HELOC
Option 3: Blend & Extend
- Add to existing mortgage
- Avoid early payout penalties
Second Home vs. Investment Property
Second Home (Personal Use):
- May qualify with 5% down (insured)
- Must be owner-occupied part of year
Investment Property:
- Minimum 20% down payment
- Higher interest rates apply
Tax Implications
Principal Residence Exemption:
- Only ONE property qualifies
- Choose which to designate strategically
Frequently Asked Questions
Can I have two principal residences?
No, you can only designate one property as your principal residence per year.
Will buying a second home affect my first mortgage?
Not directly, but lenders will consider your total debt when qualifying.
Contact us to plan your second property purchase.
Explore Your Options
Let's review your equity and plan your second property purchase
