Retirement means something different to everyone — but for many Canadian homeowners, it includes some version of a recreational property to call their own. A lakeside cottage, a cabin in the mountains, a quiet retreat by the water. Whatever the vision, the idea of a second property has a way of staying with people.
It is not a far-fetched dream. Canada has no shortage of beautiful recreational properties, from Ontario’s lake country to the coastal retreats of Nova Scotia. But getting there can feel complicated — cottage prices have climbed steadily, and savings once earmarked for a recreational purchase are often already spoken for.
What many homeowners do not immediately think about, though, is the equity sitting in their primary residence. That equity has been building for years, and for the right situation, it can be the key to making it work.
Canada’s Recreational Property Market: What Buyers Should Know
According to Royal LePage’s 2026 Spring Recreational Property Report, the median price of a single-family home in Canada’s recreational regions is forecast to increase 4.0 per cent in 2026, reaching $604,552. In 2025, the weighted median price of a single-family home in Canada’s recreational regions had already increased 4.3 per cent year over year to $581,300.
As Royal LePage president and CEO Phil Soper noted, new developments in recreational regions remain relatively rare, and many properties are tightly held by families for generations — a scarcity that preserves the exclusivity of these markets and provides price stability, even when buyers are feeling cautious.
The Real Estate Institute of Canada has pointed to something similar: recreational property supply is limited not just by economic factors but by geography itself. As their 2025 analysis puts it, in cottage country supply is even more chronic than in urban markets — because you simply cannot build a new lake.
The takeaway for anyone who has been waiting for the “right time” to buy a recreational property is fairly clear. These markets tend to hold their value, and meaningful price drops are not something the data has been predicting.
Recreational housing appeals to a mature, established buyer with a primary residence who is nearing or already in retirement, and the market tends to remain more steady even through economic turbulence, because buyers often have the disposable income or savings to follow through.
The Real Barrier: Why It’s Hard to Finance a Second Property After 55
Purchasing a recreational property is not like buying a primary residence. Conventional lenders typically require at minimum a 20 per cent down payment on a second home, and they want to see reliable income to qualify. For Canadians living primarily on CPP, OAS, or a pension, meeting those income thresholds can be a genuine challenge — even for homeowners who have spent decades building real, significant wealth.
This is the gap that frustrates so many: you may have hundreds of thousands of dollars in home equity, but that equity is not something a traditional mortgage lender will count when sizing you up for a recreational property loan. The wealth is real. The access to it, through conventional means, is not always straightforward.
How the CHIP Reverse Mortgage Could Help You Buy a Recreational Property
The CHIP Reverse Mortgage by HomeEquity Bank is designed for Canadian homeowners aged 55 and better, and it works by allowing you to access up to 55 per cent of your primary home’s appraised value as tax-free cash — without selling your home, taking on monthly mortgage payments, or having to qualify based on your income.
Because the funds are a loan against your home and not taxable income, they will not affect your Old Age Security or other government benefits you may be receiving. You could use those funds as a down payment on a recreational property — or, depending on the value of your home and the property you have in mind, potentially purchase a recreational property outright.
The flexibility matters too. With no monthly payments required on the reverse mortgage, you are not suddenly managing a new financial obligation that strains your retirement cash flow. The loan and its interest are repaid when you eventually sell your primary home or move out — and your cottage or cabin remains entirely separate from that.
Beyond the Purchase: Maintaining and Improving a Family Property
Not every homeowner is starting from scratch. Many Canadian families already have a cottage or cabin — often one that has been in the family for years — and the challenge is not buying one but keeping it in good shape.
With the rise in multi-generational use of vacation retreats, recreational properties are getting more expensive to maintain, renovate, and pay property taxes on. Parents living off retirement income may own the cottage, but many face cash-flow challenges as costs rise.
The CHIP Reverse Mortgage can help here too. Whether the goal is winterizing a cabin for year-round use, updating plumbing and electrical, making accessibility improvements, or simply refreshing the space so the whole family is comfortable — the tax-free funds can go toward all of it, without disrupting your regular income.
As Royal LePage’s Soper put it, “the core buyer groups remain largely unchanged — retirees planning to relocate to cottage country full time and urban residents seeking a weekend escape continue to drive demand, drawn by the lifestyle and sense of retreat that Canadian recreational properties have to offer.” Having a plan to maintain and preserve your property is part of making sure it can serve that purpose for years to come.
A Few Things Worth Keeping in Mind
A reverse mortgage is secured against your primary residence — not the recreational property itself. That means the cottage or cabin you purchase is separate from the loan entirely, and it stays in your family’s hands.
It is always worth having a conversation with a financial advisor or mortgage specialist before any significant decision, but for Canadian homeowners 55 and better who have built up meaningful equity in their home, the CHIP Reverse Mortgage offers a practical, tax-efficient way to access that wealth and put it to work.
Curious about how much your home equity could unlock? Get a free, no-obligation estimate from HomeEquity Bank today and take the first step toward your recreational property goals.
Please note: This blog is intended for informational purposes only and does not constitute financial or legal advice. We recommend speaking with a qualified financial advisor to determine the best option for your individual situation.