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Time at the cottage is a favourite year-round activity for countless Ontarians. With more people flocking to cottage country during these hot summer months, there’s also an annual uptick in interest in cottage renovations.
As a mortgage broker, you may be fielding more inquiries currently from clients interested in financing a renovation project. In this article, we share insights into the common types of cottage renovations and things you need to know to secure flexible mortgages for your clients’ cottage renovations.
The are endless ways in which your client may want to renovate their cottage. Here are a few of the most common types of projects we see:
At Pillar, we typically lend up to 75% LTV on cottage renovation or construction deals, unless there are exceptional factors related to the property, location, or borrower circumstances.
As Ontario cottage country experts, we offer mortgages for a wide variety of scenarios involving cottages and other properties outside of major urban centres. It sometimes surprises brokers to learn that we even lend on islands for renovation, construction, or purchase deals.
However, there are a few types of deals on which we don’t lend, including:
Despite the popularity of cottage life in Ontario, many A lenders are hesitant to lend on cottages – especially for renovations. If you’ve previously tried securing cottage financing from a bank, you already know that they offer low LTVs or have many red flags related to the property’s type of plumbing, heating, and insurance.
At Pillar, we have deep expertise in lending on cottage renovations, and we love working closely with brokers to put in place flexible and fair financing for your clients.
If you have questions about financing for cottages renovations, contact our business development team to discuss your needs. Or if you have a deal ready to go, simply submit your application to Pillar today through Filogix.