When Canada Housing and Mortgage Corporation announced that they would no longer offer insurance on second homes, some believed it would mean a slowdown in sales of recreational property.However, since the policy was implemented at the end of May, there has been “little, if any” impact on the market, according to Re/Max. The company releases its recreational property report today, which says that they are not expecting to see a big impact from the change.
Part of the reason is that many buyers in this market have more than 20 per cent as a down payment or are able to insure the shortfall through commercial alternatives.
The report also shows that although sales have been slow recently, and there has clearly been a downturn from pre-recession levels, things are improving well.
Young, wealthy buyers are increasingly using profits from their urban property to make additional purchases in vacation spots.
