Technically, any property you want to buy can be your first home, even if it is in a vacation ‘hot zone.’ The banks will treat the evaluation factors the same. While we’ve outlined some of the criteria that lenders look for when mortgaging a second home, these could apply to a primary residence, too. If you want to mortgage a very unique property that is unlikely to sell quickly on the market, you will have a harder time finding a lender, regardless - even if it is your primary residence. If your credit score is low, you may need to seek alternative lenders (called, “B lenders”) or private lenders to get a mortgage. If you don’t have a big enough down payment, you’ll need to buy default mortgage insurance. So in many ways, it’s the same process, with the same rules, and the same rates. Here is where things become a little different, price-wise: If you can be a full-time resident in your home - even if it is a little cottage on a lake - you can save considerably on home insurance and mortgage interest rates. These can be 0.10% to 0.25% less if the home is owner-occupied. You may even get a longer amortization period. You’ll also have more flexibility when refinancing or renewing your mortgage later. The main reason that vacation property mortgages are marketed as different products, is because they usually come with higher risk for banks. But, there are ways to get around that. This brings us to the next strategy we’ll talk about. It comes in handy when you already own a home, and have built equity in it. Please see more on our website.