Options for Financing Your Cottage - Royal Homes Options for Financing Your Cottage - Royal Homes
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Options for Financing Your Cottage

Planning Your Lot & Home

So you have decided to go for it and invest in a cottage for the weekends and summer vacations. It is certainly an exciting time! Of course, once you do make the decision to get a cottage, it is important to consider not only where you want to have a cottage, but also how you will finance your new home. To help guide you through this process, we have compiled the major options available to you for financing your cottage.

Options for Financing Your Cottage

Buy It Outright

If you are extremely lucky, all you will need to do is find a cottage within your price range and make the purchase outright. If there is not a pre-existing cottage that suits your needs, however, the good news is all is not lost. You can also scout out the perfect piece of land, purchase it, and construct a cottage to fit that land. It could even be a modular home, which will speed the building process and provide a realistic outlook on how much everything will cost right at the outset—no surprises.

Cottage Mortgage

Perhaps the most popular financing option when it comes to buying a new home, including cottages, is taking out a mortgage. While this word is thrown around a lot, what exactly does it mean for you and your wallet? Well, in terms of cottage life, your mortgage can be one of two major things. Most banks, including RBC, have Vacation A and Vacation B options.

The former refers to cottages with permanent foundations, have access year-round, and include permanent sources of heat and potable water. What the bank wants to know, essentially, is how well your cottage can sustain itself when no one is around for weeks or months at a time. For the most part, these mortgages are the same as mortgages for your primary residence.

Vacation B cottages, on the other hand, are those with wood stoves, only possess seasonal access, may not have a potable water source, et cetera. These are the cottages for those really looking to be at one with the wilderness. Unfortunately, mortgages are harder to come by for this type of property because of the maintenance requirements and how well they do without anyone physically there.

One Time Loan

Do you almost have enough, but not quite? Sometimes it might not be worth it to take out a full mortgage in order to finance the purchase of your cottage. In cases such as this, you can take out a one-time loan from the bank to cover the difference. You can also, should you be in a position to do so, talk to friends and family to help you out if you just need that little bit more. If you choose the latter, it is important to decide how and when you will pay them back—perhaps offering time at the cottage in question is appropriate as well.


Another option for you for financing your cottage is renting it out to other individuals and families when you and yours do not plan on being there. This way, you are able to invest the money in maintenance, paying any loans/mortgage you might have taken out in order to buy the cottage to begin with, et cetera. Simply put, renting does help mitigate the costs of owning a stellar lakefront cottage.

Image: elenathewise / 123RF Stock Photo

We love our house and wouldn't change a thing if we had to do it all over again.Cynthia
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  • FAQ

    Where can I get a price list or How come your website doesn’t show pricing?

    Prices vary geographically, depending on where you are building. With the amount of options available, price lists run into thousands of options. Prices change with the options you choose. The best way to get an idea on pricing would be to contact our Design Centre nearest to where you are building.

    Why should I buy from you over a conventional or "Stick-Builder"?

    The advantages of prefab include building in a climate controlled environment, using environmentally friendly products which reduces waste and a CSA monitored quality controlled program. There is less time start to finish, with less disruption to neighborhood. We also sell at a firm price.

    Do your homes include a foundation?

    Yes our homes include full foundation and basement.

    How long does it take to build a Royal Home?

    It takes less than two weeks to build a home in our factory, but the process from start to finish is very dependent on the timing of obtaining a building permit. For most of our clients the process from start to delivery is twelve to sixteen weeks with move in eight to twelve weeks thereafter.

    What size homes do you build?

    As a custom builder we can build any size home but generally the average size range is between 1300 and 3500 sq feet.

    Do you build garages?

    Yes. Garages are built on site after the home is delivered.

    Are the homes energy efficient?

    Building a prefab home in a factory assures the highest attention to sealing the building envelope and ensures that the cold stays out.

    Since your homes are so energy efficient and air tight, how do you get fresh air?

    All our homes have HRV heat recovery ventilator air exchanger to remove stale air, and introduce fresh air.

    Where can I put a prefab home?

    Anywhere in Ontario you like.

    Can I really customize my prefab home?

    Yes, we use state of the art custom design software, today no two homes are built alike.

    Do you finish the basement?

    Yes. We can customize your basement to the finishes you desire.

    Are Royal Homes built to code?

    All Royal Homes are individually designed to meet all provincial and municipal building codes for your specific lot location.

    Do you build stick-built or conventional homes as well?

    We are a custom home builder first and use prefabricated components wherever we can, because it is a better way to build. If you have a remote site or custom home design with large open spaces we would look at what makes most sense for that design and location. This could include prebuilt panels or partially site built specific rooms.

    What makes the building process environmentally friendly?

    Waste in the factory is separated and recycled, reducing the impact on landfills. This has less disruption in terms of noise and time at job site. Building prefab allows for higher energy efficient homes and reduced heating costs.

    How is your home delivered?

    Our home is delivered by way of custom designed hydraulic flatbed trailers and precisely craned onto the foundation.

    Can you make changes or custom design?

    Yes, clients are given preliminary plans to review and changes are welcome and easily accommodated.