Cottage down payment calculator

Find the minimum down payment for a year-round or seasonal cottage in Ontario, plus any mortgage insurance premium, with plain-language answers.

Your numbers

$
Can you drive to it all winter?
Is it heated for year-round use?
Will you rent it out?
Modelled minimum down payment$40,000

A cottage you can reach and heat all winter can be bought with as little as 6.2% down. A 20% down payment of $130,000 skips the insurance.

Share of the price6.2%
Mortgage insurance at that down payment$24,400
Ontario land transfer tax$9,475
Ontario tax on mortgage insurance (8%)$1,952
Cash to bring, before legal fees$51,427
In lender terms

Lenders call this a Type A cottage: year-round road access and a permanent heat source. Insured up to 95% loan-to-value through Sagen or Canada Guaranty, under $1,500,000.

Premium rate used: 4%. The premium is added to the mortgage.

These three questions screen for a possible programme; they do not establish eligibility. Personal occupancy, legal access, condition, water, title and credit also matter. The insured scenario uses 25 years. Closing costs exclude any eligible first-time buyer refund. Not a mortgage offer.

Talk through my down payment

How this works

The down payment on a cottage depends on three things: whether you can get to it all winter, whether it is heated for year-round use, and whether you plan to rent it out.

Answer those and the calculator shows the smallest down payment, the insurance premium at that amount, and the cash you need with land transfer tax.

A worked example

On a $650,000 cottage you can drive to and heat all winter, the smallest down payment is $40,000 (5% of the first $500,000 plus 10% of the next $150,000). If the road is not plowed in winter, it is $65,000. With 20% down, $130,000, there is no mortgage insurance.

What the numbers assume

  • Year-round cottage under $1,500,000: 5% of the first $500,000 and 10% of the rest.
  • Seasonal cottage under $1,500,000: 10%, where insurance is available. Many lenders ask for 20% or more.
  • Rented cottage, or any cottage at $1,500,000 or more: 20%.
  • Premium at the minimum down payment: 4.00% for year-round above 90% of the price borrowed, 4.35% for seasonal at 90%.
  • Cash needed adds Ontario land transfer tax. Legal fees and inspections are in the closing cost calculator.

Common questions

What is the minimum down payment on a cottage in Ontario?
As little as 5% on the first $500,000 and 10% on the rest for a cottage you can reach and heat all winter. A seasonal cottage needs at least 10%, and a rental cottage 20%.
Can I put 5% down on a cottage?
Yes, if it has year-round road access and permanent heat, you or your family use it yourselves and the price is under $1,500,000. Two insurers, Sagen and Canada Guaranty, cover these.
Why does a seasonal cottage need more down?
Lenders see more risk in a place you cannot reach or heat in winter. Only one insurer covers seasonal cottages, at up to 90% of the price, so 10% is the floor.
Can I use my home equity as the down payment?
Yes. A HELOC or refinance on your home is a common way to fund a cottage down payment. Try the home equity calculator.
Does CMHC insure cottages?
No. CMHC stopped insuring second homes in 2014. Sagen and Canada Guaranty still do.

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