Buying a cottage in Muskoka? Here is what lenders look at

Anita Groves • April 22, 2026

A cottage on the lake is a lot of people's dream, and I help make it happen often. But financing a cottage is not the same as financing a house in town, and the details matter more than most buyers expect. Knowing what a lender checks before you make an offer can save you a real headache.

Not all cottages are equal in a lender's eyes

The single biggest thing lenders care about is whether the place can be lived in year round. A winterized cottage on a maintained road, with a proper foundation and a reliable water source, is treated almost like a regular home. A seasonal place with no heat, no winter access, or water you can only reach by boat is a shorter list of lenders and usually a larger down payment. Same lake, very different mortgage.

The things that come up every time

When I take a cottage file to a lender, a handful of questions come up almost every time. Can you get there in the winter on a road someone maintains. Is there a proper heat source. Where does the water come from. Is the foundation permanent. For waterfront, what is the shoreline and the access like. And if you plan to rent it out, even part of the year, that changes the file too.

Find out before you fall in love

The hard part is that most people do not learn which category their cottage falls into until they are already trying to buy it, which is a stressful time to get a surprise. A quick conversation early, often just a few questions about the property, tells you what to expect and what kind of down payment you are looking at.

It can almost always be done

Seasonal, waterfront, even water access only, I have financed all of them. It just takes matching the cottage to a lender who is comfortable with it. If you have your eye on a place, send me the details before you make an offer.

Found a cottage, or getting close? Let's sort out the financing before you make an offer.

Cottage & Recreational Mortgages

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Anita Groves

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Deposit vs. Down Payment: Key Differences for Homebuyers

By Anita Groves • August 26, 2026

When you’re buying a home, two terms often cause confusion: deposit and down payment . While they’re related, they serve very different purposes in the homebuying process. Here’s what you need to know. What Is a Deposit? A deposit is the money you provide when you make an offer on a property. Think of it as a show of good faith that proves you’re serious about purchasing. How it works : Typically, you provide a certified cheque or bank draft that your real estate brokerage holds in trust. If your offer is accepted, the deposit remains in trust until the deal moves forward. If negotiations fall through, the deposit is refunded. Connection to your down payment : Once the sale is finalized, your deposit becomes part of your total down payment. Why it matters : The amount is negotiable, but a larger deposit can make your offer more attractive in a competitive market. Keep in mind, however, that if you back out after conditions are removed, you risk losing your deposit. What Is a Down Payment? Your down payment is the amount you contribute toward the purchase price of your home when securing a mortgage. Minimum requirement : In Canada, the minimum down payment is 5% of the home’s purchase price. Anything less than 20% requires mortgage default insurance. Sources : Down payments can come from your savings, the sale of another property, RRSP withdrawals (through the Home Buyers’ Plan), a gift from family, or even borrowed funds. Example: How They Work Together Imagine you’re buying a $400,000 home with a 10% down payment ($40,000). When you make your offer, you provide a $10,000 deposit . Once conditions are met, that deposit is transferred to your lawyer’s trust account. At closing, you add the remaining $30,000 to complete your full down payment. The lender provides the rest—$360,000—through your mortgage. The Bottom Line Your deposit shows commitment and secures your offer, while your down payment is what makes the mortgage possible. Together, they work hand in hand to get you into your new home. 📞 If you’d like clarity on deposits, down payments, or any other part of the mortgage process, let’s connect. I’d be happy to walk you through it step by step.

RRSP Home Buyers’ Plan Explained: A Smart Way to Buy Your First Home

By Anita Groves • August 19, 2026

Saving for a down payment is one of the biggest challenges first-time buyers face. What many don’t realize is that the Canadian government offers a program designed to make it easier—the Home Buyers’ Plan (HBP) . This program allows you to withdraw money from your RRSP to help purchase your first home, without immediate tax consequences. Here’s how it works: Who Qualifies? To be eligible, you generally need to be a first-time home buyer. In practical terms, this means you must not have owned a home in the past four years, nor lived in a property owned by your spouse or partner during that time. There are also special allowances if you’re living with a disability or helping a relative with a disability. In these cases, you can use the HBP even if you’ve owned a home more recently. How Much Can You Withdraw? Under the program, you can access up to $35,000 from your RRSP as an individual. Couples can combine their withdrawals for a total of $70,000 . These funds must have been in your RRSP for at least 90 days before you take them out. Paying It Back The HBP isn’t “free money”—it’s an interest-free loan from your own retirement savings. You’ll have 15 years to repay the full amount back into your RRSP, starting in the second year after withdrawal. Each year, the CRA will send you an HBP Statement of Account outlining how much needs to be repaid. If you don’t make your repayment in a given year, that amount will be added to your taxable income. Why It’s a Smart Strategy The HBP can give first-time buyers a powerful boost toward homeownership. It helps you put together a larger down payment, which can reduce your mortgage amount and monthly payments. Just remember: it’s important to balance the short-term benefit of homeownership with the long-term impact on your retirement savings. Next Steps Thinking about using the Home Buyers’ Plan? Let’s sit down and review whether it’s the right move for you. Together, we can create a strategy that gets you into your first home while keeping your future financial goals on track. 📞 Reach out anytime—it would be a pleasure to guide you through the process.