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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 Terms
  • Fixed Rate 3–5 Year Fixed
  • Variable Interest and Payment: VIP M-Power
  • MCAP Value-Flex (Fixed and Variable)
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 year round bridge or ferry access, homeowners' ability to occupy the property must not be restricted or limited at any time.
  • Suitable properties typically include the following features:
    • 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
Down Payment

Minimum of 5%, gifted or own resources

Maximum Amortizations*
  • 30 years on uninsurable
  • 25 years on insured, insurable
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:
    • 1–5 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
*Some exceptions available for transfer ins.
Subject to change without notice

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