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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 Program, 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)
  • Purchase, Refinances / Equity Take-Out, Purchase Plus Improvements, Assumptions, Transfer, Ports and Replacements
  • *Refinances are subject to a surcharge in rate – See rate sheet for details
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
  • 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
    • o Accessible year-round by a vehicle that is licensed for use on municipal, provincial and territorial roadways or, if the property is located on an island, it must have year-round bridge or ferry access (water-taxi not acceptable) 
  • Note: Vacation properties are eligible as long as they meet all the property requirements above. Vacation properties such as time-share 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)
    • Apt / condos limited to 75% LTV on amortizing segment
  • Fixed and 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: Effective May 30, 2014, CMHC will only allow one “homeowner mortgage” per borrower (including qualifying guarantors) at any given time. A Secondary Home will not be eligible with CMHC if you already have an existing “homeowner mortgage” insured with them. CMHC will permit a 90 day overlap for the sale of one homeowner insured property to another (with the exception for delayed closings or sale incompletions on a case by case basis). 
Credit Score
  • Fixed & Variable — 600 minimum for Purchase/Transfer transactions and 620 minimum for Refinance transactions. *Note: If the property value is < $1 million, minimum 650 for each applicant  
  • 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.
  • 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 (accelerated), 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 the property is sold to an unrelated purchaser at fair market value or in the event the primary borrower is deceased
  • Available with Home Mortgage Protection (mortgage life insurance)
  • Eligible for Transfer-Ins
  • Portable and assumable upon approval
*Please see product fact sheet for details
**Down payment for MCAP Fusion Mortgage, Home Account and Home Account Plus cannot be gifted.
***Some exceptions available for transfer ins. See Transfer Program fact sheet for details.
Subject to change without notice.

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