No fee everyday banking
Set up direct deposit and skip the monthly fee. Free to open, and the Easy plan has no monthly fee. Worth doing if you will actually move your pay or your CRA deposits over, not if the card sits unused. Code BREMO2026.
The complete financial guide: land transfer tax, mortgages, capital gains, insurance, and how to bank smarter in cottage country.
Cottage Buying Guide Financial Planning 2025 RulesOntario cottage country spans three distinct regions — Muskoka (premium, $500K–$5M+), Kawartha Lakes (mid-range, $300K–$1M), and Haliburton (more remote, $200K–$700K). Each offers different price points and banking considerations. Before buying, understanding the full financial picture is essential.
Cottage mortgages differ from primary residence mortgages in key ways:
| Lender Type | Best For | Notes |
|---|---|---|
| Big Banks (TD, RBC) | Standard cottage mortgages | Wide access, good rates at scale |
| Local Credit Unions | Regional expertise | Kawartha CU, Meridian, HCCU |
| Mortgage Brokers | Complex situations | Access to multiple lenders |
| Private Lenders | Non-traditional properties | Higher rates, more flexible |
All Ontario cottage purchases are subject to Ontario Land Transfer Tax. Rates:
| Price Range | Rate |
|---|---|
| First $55,000 | 00.5% |
| $55,001–$250,000 | 1.00% |
| $250,001–$400,000 | 1.5% |
| $400,001–$2,000,000 | 2.00% |
| Over $2,000,000 | 2.5% |
| Cottage Price | LTT Owed |
|---|---|
| $350,000 (Haliburton) | $3,725 |
| $550,000 (Kawartha) | $7,475 |
| $900,000 (Muskoka entry) | $14,475 |
| $1,500,000 (Muskoka mid) | $26,475 |
| $3,000,000 (Muskoka premium) | $64,475 |
| Cost Item | Typical Range |
|---|---|
| Ontario Land Transfer Tax | See table above |
| Legal fees | $1,500–$3,000 |
| Title insurance | $300–$600 |
| Home/cottage inspection | $400–$800 |
| Septic inspection | $300–$600 |
| Well water test | $100–$300 |
| Survey (if needed) | $1,000–$3,000 |
| HST (new builds only) | 13% on purchase price |
If your cottage is not your designated principal residence, selling it triggers capital gains tax. As of 2025, the inclusion rate is 500% on the first $250,000 of gains, rising to 2/3 above that. This can be a significant tax liability on properties that have appreciated substantially over decades.
Standard home insurance does not cover cottages. You need a dedicated cottage insurance policy covering:
| Bank | Best For | Monthly Fee |
|---|---|---|
| KOHO | Everyday banking, cottage country | $00 |
| EQ Bank | High-interest savings | $00 |
| Local Credit Unions | Cottage mortgages, local knowledge | $4–$16 |
| TD Bank | Full-service, standard mortgages | $10.95–$29.95 |
| RBC | Wealth management, premium mortgages | $11.95–$30.00 |
In Ontario cottage country where bank branches are sparse, KOHO's fully online no-fee bank account is perfect. Access your money anywhere, earn cash back, and pay zero monthly fees. Use code BREMO2026 for a bonus.
Get KOHO Free — Use Code BREMO2026Yes, for recreational cottages (not principal residence). CMHC mortgage insurance is not available for vacation properties, so a minimum 200% down payment is required. Premium Muskoka properties may require 25–35%.
The principal residence exemption (PRE) eliminates capital gains tax on a property designated as your principal residence. You can only designate one property per year. Strategic year-by-year designation between your home and cottage can reduce lifetime capital gains — consult a tax professional.
Yes, but rental income is taxable. You can offset rental expenses (insurance, maintenance, mortgage interest on rental-use portion). Short-term rental rules vary by municipality — Muskoka and other regions have STR bylaws. See our Ontario Cottage Rental Income guide for details.
This is general information only. Not legal, tax, or financial advice. Consult qualified professionals for your specific situation. Rules and rates as of 2025.