Property Use

Property Use

Property Use

Pertaining to residential mortgages and their risk based pricing methods, the "Property Use" is sub-categorized as follows:
Primary residence,
Second home,
Non-Owner Occupied or Investment Property

A Primary residence is viewed and priced as the lowest risk factor of Property Use. There are no adjustments to pricing or rate.

A Second home is viewed and priced according to lender, some will asses the same risk factor as a Primary Residence while others will factor in a .125% to .5% pricing increase to mitigate the perceived risk. Lenders perceive that the borrower is less likely to value the Second home if the borrower was faced with financial difficulties.

A Non-Owner Occupied property is viewed and priced as the highest risk factor of Property Use. Lenders will factor in a .5% to 2.5% pricing increase to mitigate the perceived risk.

Ask a corresponding Mortgage broker, Mortgage Banker, or Retail Banker for specific pricing adjustments according to Property Use.


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