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Secondary Home Program

Obtain financing up to 95% loan-to-value on the purchase of a SECOND home.

A medium sized white house with an enclosed windowed porch surrounded by greenery.
  • Today’s lifestyle choices, family circumstances and work demands have changed the housing needs of Canadians.
  • With MCAP’s Secondary Home, financing up to 95% loan-to-value can be obtained for the purchase of a secondary residence that will be occupied at some point during the year in addition to a current primary residence.
  • The secondary residence must be occupied by the purchaser or relative of the purchaser on a rent-free basis and also be designed for year-round occupancy.
Secondary Home Program Details
Eligible MCAP Products
  • High Ratio, Insurable, Uninsurable
  • Fixed Rate 3–5 Year Fixed
  • Variable Interest and Payment: VIP M-Power
  • Home Account® and Home Account Plus
  • MCAP Value-Flex
  • MCAP Fusion Mortgage (Ambassador & Ambassador Plus)
Purpose

Purchase, refinances, Purchase Plus Improvements, Transfer

Property Type
  • Eligible properties must be owner-occupied (or occupied by a relative on a rent-free basis) up to a maximum of 1 unit
  • Property must be suitable for and available for year round occupancy, properties located on an island must have a yearround bridge or ferry access, borrower’s ability to occupy the property must not be restricted or limited at any time.
  • Some examples of features suitable properties typically have include:
    • A permanent heat source
    • Acceptable year-round water source
    • A permanent primary source of electricity, please note that generators are considered a supplementary source of electricity
    • Insulated for year-round occupancy
    • Indoor kitchen and bathroom facilities
    • Accessible year-round by a vehicle that is licensed for use on municipal, provincial and territorial roadways.

    Note: Vacation properties are eligible as long as they meet all the property requirements above. Vacation properties such as timeshare interests, life leases, properties in rental pools, properties constructed for seasonal use or with seasonal access, and mobile homes are not eligible.

Loan Amount
  • $50,000 to $750,000 (Vancouver, Calgary, Toronto)
  • $50,000 to $600,000 (all other regions)
Maximum loan size to the value of your home (LTV)
  • MCAP Fusion Mortgage
    • Line of Credit Maximum — 65%
    • Total lending Maximum LTV — 80% (including all segments)
  • Fixed & Variable
    • Purchase / Transfer — 95% LTV
    • Refinance — 80% LTV
  • Line of Credit Products
    • Home Account — 65% LTV
    • Home Account Plus — 70% (exception up to 80%) LTV when combined with MCAP First Mortgage (line of credit portion </= 65% LTV)
Down Payment

Gifted or own resources**

Mortgage Insurance

All high-ratio Secondary Home Mortgages must be insured through CMHC, Genworth or Canada Guaranty and approvals received prior to commitment.
Note: Borrower(s) are not to have more than two CMHC insured mortgages after the close of this mortgage transaction.

Beacon Score
  • Fixed & Variable — 600 minimum (650 - property value >= $1 million)
  • Line of Credit Products — 650 minimum
  • MCAP Fusion Mortgage — 650 minimum
  • Refinance — 620 minimum
Documentation Requirements

MCAP is responsible to ensure that the property meets the general requirements and is not seasonal.

Pre-approvals

Not eligible for pre-approvals

Maximum Amortizations***
  • 30 years on uninsurable
  • 25 years on high ratio, insurable, Home Account, Home Account Plus and MCAP Fusion Mortgage.
Payment Options

Monthly, semi-monthly, bi-weekly, weekly (accelerated)

20% + 20% Prepayment Privilege
  • Lump sum up to 20% of the original principal amount (minimum $100)
  • 20% increase in payment, incremental fixed amount can be added to principal and interest payment
Early Payout

Early Payout Premium:

  • Fixed Rate:
    • 3–5 Year Greater of 3 months interest or Interest Rate Differential
  • Variable Interest and Payment:
    • VIP M-Power, 5 Year Term - 3 months interest
  • Reinvestment Fee:
    • $500 in Year 1, $400 in Year 2 and $300 in Year 3 of term
  • MCAP Value-Flex:
    • Full repayment before maturity can only occur if property is sold to an unrelated purchaser at fair market value or in the event the primary borrower is deceased
Other
  • Available with Home Mortgage Protection (mortgage life insurance)
  • Eligible for Transfer-Ins
  • Portable and assumable upon approval
**Downpayment for MCAP Fusion Mortgage, Home Account and Home Account Plus cannot be gifted.
***Some exceptions available for transfer ins.
Subject to change without notice

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