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Thinking of Buying a Second Property in BC? Here’s What You Need to Know

As a mortgage broker here in beautiful British Columbia, one of the questions I get asked more and more is:
“Can I afford to buy a second property?”

Whether it’s for a vacation home, a rental investment, or a place for a family member, purchasing a second property can be an exciting financial move—but it’s not without its complexities. In this blog post, I’ll walk you through what you need to consider before taking the plunge, how lenders view second property purchases, and some key strategies to make it work.

1. Know Your “Why” – It Changes Everything

Not all second properties are treated equally in the eyes of lenders. Your intended use can impact your mortgage options:

  • Vacation Home / Second Residence: If you plan to use it personally (and not rent it out full-time), most lenders will treat this similarly to your primary residence.

  • Rental Property: If your goal is to earn rental income, lenders will apply different criteria—often stricter—since it’s considered a higher-risk mortgage.

  • Multi-Generational Housing: Buying for a child, parent, or other relative? Some lenders may allow flexibility depending on the arrangement.

Clarifying your purpose early on helps us tailor your mortgage strategy from the start.

2. Do You Qualify for a Second Mortgage?

This is the make-or-break question. Here’s what lenders will be looking at:

  • Equity in Your Current Home: In many cases, homeowners use the equity in their existing property as a down payment on the second one—either through a HELOC (Home Equity Line of Credit) or refinancing.

  • Your Debt Ratios: Lenders will want to ensure you can comfortably carry two mortgages. We’ll look at your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios.

  • Credit Score & Income Stability: Strong credit and steady income are crucial when applying for any additional financing.

If you already own one property, you’re likely familiar with some of this—but buying a second home often means navigating more layers of scrutiny.

3. Down Payment Requirements

Here’s the short version:

  • Second Home (personal use): Minimum down payment is typically 5-10%, depending on the purchase price.

  • Rental Properties: Lenders usually require 20% down, and mortgage default insurance (like CMHC) is not available.

One strategy I help clients explore is tapping into existing home equity to fund the down payment—especially if you’re sitting on a property that has appreciated significantly in the BC market over the past few years.

4. Don’t Forget Closing Costs, Taxes & Insurance

Beyond the mortgage, consider the additional costs:

  • Property Transfer Tax (with limited exemptions)

  • Legal fees, appraisals, inspections

  • Insurance (especially if the second home is in a rural or remote area)

  • Ongoing maintenance and utilities

For rental properties, don’t forget to factor in vacancies and potential repairs as part of your budget.

5. Consider Rental Income as Part of the Picture

If your second property will be a rental, good news: many lenders will count a portion of the rental income toward your qualifying income. Typically, 50–80% of the projected rent can be added, depending on the lender and whether you have a lease in place.

This can make a big difference in your approval odds—and it’s something we can model for you before you even make an offer.

6. Work With a Mortgage Broker Who Knows the BC Market

Buying a second property is a big move, but with the right plan in place, it’s more accessible than many people think. As a mortgage broker, I work with dozens of lenders—not just the big banks—to help you find the right fit for your goals, whether you’re buying in Vancouver, Kelowna, the Gulf Islands, or anywhere in between.

I’ll help you:

  • Evaluate your equity and borrowing power

  • Compare mortgage products from multiple lenders

  • Understand the tax and insurance implications

  • Structure your financing for both short- and long-term success

Ready to Explore Your Options?

If buying a second property is on your radar, let’s talk. A quick mortgage pre-assessment can show you what’s possible—and prevent surprises down the road.

👉 Book a free consultation with me today, and let’s build a mortgage strategy that helps you reach your next milestone.

Author: Craig Barton, BC Mortgage Broker
Helping homeowners and investors make smart, confident moves in real estate.