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Secondary Home Program

Obtain financing up to 95% loan-to-value on the purchase of a SECOND home.

  • Today’s lifestyle choices, family circumstances and work demands have changed the housing needs of Canadians.
  • With MCAP’s Secondary Home, financing up to 95% loan-to-value can be obtained for the purchase of a secondary residence that will be occupied at some point during the year in addition to a current primary residence.
  • The secondary residence must be occupied by the purchaser or relative of the purchaser on a rent-free basis and also be designed for year-round occupancy.
Secondary Home Program Details
  • Purchase
  • Refinance
  • Equity take-out
  • Purchase Plus Improvements
  • Transfer
  • Refinances are subject to a surcharge in rate, See rate sheet for details
Property Type
  • Eligible properties must be owner-occupied (or occupied by a relative on a rent-free basis) up to a maximum of 1 unit
  • Property must be suitable for and available for year round occupancy, properties located on an island must have a year- round bridge or ferry access, borrower’s ability to occupy the property must not be restricted or limited at any time.
  • Some examples of features suitable properties typically have include:
    • A permanent heat source
    • Acceptable year-round water source
    • A permanent primary source of electricity, please note that generators are considered a supplementary source of electricity
    • Insulated for year-round occupancy
    • Indoor kitchen and bathroom facilities
    • Accessible year-round by a vehicle that is licensed for use on municipal, provincial and territorial roadways, or, if the property is located on an island it must have year-round bridge or ferry access (water-taxi not acceptable)
Note: Vacation properties are eligible as long as they meet all the property requirements above. Vacation properties such as time-share interests, life leases, properties in rental pools, properties constructed for seasonal use or with seasonal access, and mobile homes are not eligible.
Loan Amount
  • $50,000 to $700,000 (Vancouver, Calgary, Toronto)
  • $50,000 to $600,000 (Rest of Canada)
Maximum loan size to the value of your home (LTV)
  • MCAP Fusion Mortgage
    • Line of Credit Maximum — 65%
    • Total lending Maximum LTV — 80% (including all segments)
    • Apt/condos limited to 75% LTV on Amortizing segment
  • Fixed & Variable
    • Purchase — 95% LTV
    • Refinance — 80% LTV
  • Line of Credit Products
    • Home Account — 65% LTV
    • Home Account Plus — 70% (exception up to 80%) LTV when combined with MCAP First Mortgage (line of credit portion </= 65% LTV)
    • Apt/condo max LTV 75%
Down Payment

Gifted or own resources*

Mortgage Insurance

All high-ratio Secondary Home Mortgages must be insured through CMHC, Genworth or Canada Guaranty and approvals received prior to commitment.
Note: Borrower(s) are not to have more than two CMHC insured mortgages after the close of this mortgage transaction.

Beacon Score
  • Fixed & Variable — 600 minimum
  • Line of Credit Products — 650 minimum
  • MCAP Fusion Mortgage — 650 minimum
Documentation Requirements

MCAP is responsible to ensure that the property meets the general requirements and is not seasonal.


Not eligible for pre-approvals

Maximum Amortizations

30 years on conventional and 25 years on high-ratio (Home Account, Home Account Plus and MCAP Fusion Mortgage). A surcharge in rate applies to amortizations greater than 25 years. See rate sheet for details. Refinances are subject to a maximum 25 year amortization.

Payment Options

Monthly, semi-monthly, bi-weekly, weekly (accelerated)

20% + 20% Prepayment Privilege
  • Lump sum up to 20% of the original principal amount (minimum $100)
  • 20% increase in payment, incremental fixed amount can be added to principal and interest payment
Early Payout Early Payout Premium:
  • Fixed Rate:
    • 3–5 Year Closed - Term Greater of 3 months interest or Interest Rate Differential
  • Variable Interest and Payment:
    • VIP M-Power, 5 Year Term - 3 months interest
  • Reinvestment Fee:
    • $500 in Year 1, $400 in Year 2 and $300 in Year 3 of term
  • MCAP Value-Flex:
    • Full repayment before maturity can only occur if property is sold to an unrelated purchaser at fair market value or in the event the primary borrower is deceased
  • Available with Home Mortgage Protection (mortgage life insurance)
  • Eligible for Transfer-Ins
  • Portable and assumable upon approval
  • 30 and 45 day QCP not eligible
*Downpayment for MCAP Fusion Mortgage, Home Account and Home Account Plus cannot be gifted.
Subject to change without notice.
Find a mortgage broker near you to learn more about this product.