FAQs

Q?

Primary Residence

A.

A person's primary residence is the dwelling where they live, typically a house or an apartment. A person can only have one primary residence at any given time, though they may share the residence with other people.

A primary residence is considered as a legal residence for the purpose of income tax and/or acquiring a mortgage.

Advantages:

  • All interest on the mortgage is tax deductible
  • Establishes credit history
  • Secured investment
  • Builds equity
  • Can be used to borrow against
  • Gifts are allowed

Q?

Second Home

A.

A "second home" refers to private ownership of a residence other than one's primary residence. Depending on their purpose, second homes are sometimes called vacation homes, or secondary residence. The property must be available for your exclusive use and enjoyment and must not be subject to any rental pools or long-term leases.

Advantages:

  • Buy the home now while employed and retire in it later
  • Build wealth with additional equity
  • Similar terms to primary residence loan

Q?

Investment Property

A.

A real estate property that is not occupied by the owner and has been purchased with the intention of earning a return on the investment, either through rent, the future resale of the property, or both. An investment property can be a long-term endeavor, such as a rental home, or an intended short-term investment in the case of rehabilitation (where a property is bought, remodeled or renovated, and sold at a profit).

Advantages:

  • Capital growth
  • Rental income and yield
  • Tax shelter
  • Build wealth