Buying a second property is an exciting milestone. Whether you’re buying a rental property to build long term wealth, buying a second home like a cottage for weekend escapes or purchasing a place for a family member, a second property can open up options, financially and lifestyle-wise.
The key is knowing what’s different the second time around so you can move forward confidently. Here are 5 things to know before buying a 2nd property in Ottawa and across Ontario.
1) You have more options for a down payment than you might think
One of the first questions people ask is about the down payment for a second home, and the answer depends on how the property will be used.
In many cases:
- A second home (like a cottage or personal-use property) can qualify for different financing rules than a pure investment purchase.
- When you’re buying a rental property, lenders often look for a stronger down payment (commonly 20% for many scenarios) because it’s non-owner-occupied.
The good news is that second property buyers often come into this purchase with stronger fundamentals than first-time buyers:
- More equity
- More credit history
- More financial structure
- A clearer plan
Best move: Talk to a mortgage professional early so you know exactly what category your purchase fits into and what down payment makes the most sense for your goals.
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2) Equity can be your secret weapon for buying a second home or rental
For many Ottawa homeowners, the biggest advantage is how to use equity to buy a second home (or investment property). If your current home has increased in value (which has been common over the past several years) you may be able to access equity through:
- A refinance
- A HELOC (home equity line of credit)
- A second mortgage
This can help you:
- Create the down payment
- Keep more cash on hand
- Renovate or upgrade the second property
- Move faster when the right opportunity shows up
Pro tip: The strongest strategy is using equity while still keeping a comfortable buffer. That way, your second property becomes an added benefit and not a stress point.
3) If it’s a rental, the “real” numbers are what make it a great investment
When you’re buying a rental property, you’re not just buying a home, you’re buying an income-producing asset. And that’s a good thing because it means you can make decisions based on data.
A strong rental plan in Ottawa usually considers:
- Mortgage payment and interest rate
- Property taxes and insurance
- Maintenance and repairs
- Vacancy planning (even great rentals will turn over eventually)
- Utilities (if included)
- Property management (if you want a hands-off option)
- Condo fees (if applicable, and confirming rentals are allowed)
The positive here is simple: once you understand the full picture, you can choose a property that fits your comfort level, whether your goal is cash flow today or long-term appreciation with mortgage paydown.
Bottom line: A rental doesn’t have to be perfect – it just has to work for your plan.
4) Ontario rental rules are clear, and clarity is a good thing
Ontario’s landlord-tenant rules are often viewed as complex, but a better way to think about it is: they’re structured. And structure creates predictability.
If you’re investing, knowing the rules helps you:
- Set up the lease properly from day one
- Screen tenants carefully and fairly
- Build the right expectations
- Protect your investment with good documentation
And if you’re buying a property with an existing tenant, it can actually be a benefit as you may be stepping into immediate income. The key is simply doing the right due diligence:
- Reviewing the lease terms
- Confirming rent and payment history
- Understanding what’s included (utilities, parking, etc.)
- Ensuring the property aligns with your strategy
Smart investors don’t fear the rules – they build around them. With the right approach, rental ownership in Ontario can be very stable.
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5) Second properties come with added costs but also added long-term value
Yes, there are closing costs when buying any home in Ontario (legal fees, adjustments, etc.) and land transfer tax still applies but the positive framing is that these are one-time costs tied to acquiring an asset that can create value for years.
Also worth understanding early:
- A second property typically won’t receive the same full principal residence tax treatment when you sell, especially if it’s a rental.
- If it’s a cottage or second home, future planning matters (how you’ll use it, whether it may become a rental later and long-term family plans).
None of this is meant to scare you, it’s actually empowering because once you plan properly, you can choose the ownership structure and strategy that best support your long-term goals.
Planning up front = confidence later.
Choose a Path That Works For You
A second property can mean:
- A long-term investment plan
- A family getaway
- A future retirement move
- Flexibility for life changes
- Another way to grow wealth in a market you know
Whether you’re buying a second home or buying a rental property, the best results come from matching the purchase to your lifestyle, your numbers and your timeline and making sure the financing and due diligence are set up properly.
If you’re thinking about buying a second property in Ottawa or anywhere in Ontario, reach out, we’re happy to help you build a smart plan and make the process smooth from start to finish.
Your real estate goals deserve expert guidance. Let’s chat. Call 613.909.8100 or reach us by email at info@PilonGroup.com.
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