Edmonton family enjoying their cottage — financed with the Sagen Second Home Program
Sagen Second Home Program

Your cottage, cabin,
or city pied-à-terre.

Sagen's Second Home Program lets qualifying Canadian buyers finance a vacation or seasonal property with as little as 5% down — the same down payment rules as a primary residence, at the same low insured rates.

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Primary-residence rules for your second place

Sagen — formerly Genworth Canada — is one of Canada's three mortgage insurers. Its Second Home Program is the reason many Canadians can own a vacation property without saving 20% down. Qualifying borrowers can finance a second home with 5% down on the first $500,000 and 10% on the portion above, up to a $1,000,000 maximum purchase price.

Because the mortgage is insured, you get the same low rates as a primary residence purchase — significantly lower than what you'd pay trying to finance the same property as a "rental" through a non-insured route. The trade-off: the property has to genuinely be your second home, not a year-round rental.

Right fit checklist

  • Owner-occupied at least seasonally. You or an immediate family member need to be the primary occupant when the property is in use. It can't be rented out year-round.
  • Single-unit residential. Detached, semi-detached, townhouse, or condo. Not multi-unit. Not a duplex you'll rent half of.
  • Located in Canada. Sagen insurance applies to Canadian property only. For US vacation property, financing structure is different and we can walk you through alternatives.
  • Full-documentation income. Standard pay stubs, T4s, and Notices of Assessment. Self-employed buyers have a more rigorous documentation requirement on Sagen-insured deals.
  • Good credit. Typically a 680+ credit score, though Sagen evaluates the full file. Bruised credit isn't a fit for this insured program.

Same structure as a primary residence

5% on the first $500,000. If your second home is $500,000 or less, the minimum down payment is 5% — for example, $25,000 on a $500,000 cabin.

10% on the portion above $500,000. Above the first $500,000, the rate steps up. A $750,000 property requires $25,000 (5% × $500,000) plus $25,000 (10% × $250,000) = $50,000 minimum down payment.

Cap at $1,000,000. The Sagen Second Home Program insures purchases up to $1,000,000. Above that, the property has to be financed conventionally with 20%+ down.

Insurance premium. Like all insured mortgages, there's a one-time premium added to the mortgage balance — typically the same scale as primary-residence insured deals at the same loan-to-value.

Be honest about the use

If you're planning to rent it out year-round, this isn't the right program — Investment Property financing is what you'd need (20% minimum down, different rate structure, qualifying income includes rental projections). Trying to fit a rental into Sagen Second Home is mortgage fraud and the consequences are serious.

Third homes. Sagen Second Home is for your one second home. If you already own a second home and want to add a third, this isn't the route.

Properties without year-round road access. If you have to take a boat to get there, or if the property is only accessible part of the year, restrictions apply — though some seasonally-accessible vacation properties do qualify. We'll review your specific situation.

Time-shares or fractional ownership. The program insures whole-ownership purchases, not partial.

Backed by Sagen — and funded by major lenders

Sagen insures the mortgage. Major Canadian banks, credit unions, and monoline lenders provide the funding. We shop your file across them all.

Logos shown are property of their respective owners. Sagen insurance is provided by Sagen Mortgage Insurance Company Canada. Final lender selection depends on your individual qualification.

Common questions

Occasional short-term rental (think: family friends staying for a long weekend you're not there) is generally fine. Renting it out commercially as the primary use of the property is not what this program insures — that's a rental property and needs different financing. If your plan involves regular short-term rentals through a platform like Airbnb, we need to discuss your specific use case before proceeding.
That's a common path and completely fine. The Sagen Second Home insurance is based on the property's use at the time of funding. If your plan is to retire there in 10 years and the property starts as a vacation home, the financing is valid. When you eventually convert it to your primary residence, no refinance is required — you simply update your address.
Generally no — Sagen Second Home insurance premiums are typically equivalent to primary residence premiums at the same loan-to-value. The premium structure is published by Sagen and we'll show you the exact number for your specific deal in your quote. Premiums can be paid in cash at closing or added to the mortgage balance.
No — the program is for your one second home, in addition to your primary residence. If you already own a vacation property and want to add another, that third property has to be financed conventionally (20% minimum) or as an investment property if you're planning to rent it.
The math is mostly the same — your debt-service ratios still need to fit within Sagen's qualifying standards, the federal stress test still applies, and you'll need to demonstrate enough income to carry both your primary residence and the second home. The key differences: stricter income documentation, no projected rental income counted, and the property must clearly fit the "second home" use definition. We'll run your numbers and tell you exactly what your maximum purchase price looks like.

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