While there are many advantages to using a second home mortgage to purchase a second property there are risks and other considerations to keep in mind:
A second home mortgage is for properties that meet the building requirements to be considered a secondary home (Type A). The requirements are:
For a property that meets these specifications as a second home (Type A) the minimum down payment for a second home mortgage is 5%. If the property value is greater than $500,000 the down payment must be 10% for the portion of the value that is above $500,000.