Buying a second home in 4 steps

By OACIQ Partner of Protégez-VousPosted online: August 5, 2016

Buying a second home is an exciting project! Whether you are looking for a cottage to spend the weekend or to benefit from rental income, this transaction should not be taken lightly and should be the subject of a thorough analysis.

Here are some points that the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) recommends you consider before taking action.

Step 1: Identify your needs

Start by identifying your needs. How far do you want to travel? Do you want to practice motorized water sports or do you prefer the tranquility of an ecological lake? Do you plan to go there year-round or just to enjoy the snowy ski slopes? Would a turnkey formula be ideal or are you looking for a renovation project?

Step 2: Evaluate expenses and your budget capacity

As with buying a new home, it is essential to establish a realistic budget before starting the search for a second home. This budget must take into account your lifestyle habits and your objectives.

The goal of this exercise is to set a purchase price that fits your situation. This way, your search will be more effective and you will avoid exposing yourself to the temptation of a property beyond your means!

To help you, consult the “Establish your budget and your borrowing capacity” section available in the Buyer’s Guide , a practical tool designed by the OACIQ.

Step 3: Analyze your borrowing capacity

Once you know your budget capacity, you can estimate the amount that a mortgage lender could grant you.

A mortgage broker is a professional authorized by the Autorité des marchés financiers who can help you analyze your financial situation: credit rating, borrowing capacity, debts, down payment, etc. They will answer all your questions, and that's when you'll know exactly how much you can invest in your second home.

Step 4: Start your research

Once you know your financial capacity and have established your budget, you can begin your search and find the second home of your dreams. In fact, to do this, we recommend that you call upon a real estate brokerage professional authorized by the OACIQ. They will accompany you throughout your transaction and must ensure that all required operations are carried out in accordance with the Real Estate Brokerage Act and its regulations.

Want to know more? Visit the OACIQ website to get a wealth of useful information for your transaction, or contact our Info OACIQ information centre.