Hotel Condos

If you are the kind of person who visits a resort a few times a year and you want local ownership without the responsibility of being a property manager, a hotel condo is a good fit. Priced significantly lower than a residentially zoned condos, a hotel condo can be included in the hotel rental pool, which means you earn rental income when you are not there.

Hotel Condos are typically placed into two categories:

1) Phase 1 Hotel Condos – This is a property zoned as a condo with unlimited year round use for the owner. Unlike a typical residentially zoned condo, a phase 1 hotel condo is authorized for nightly rentals but can also be used as a residence or rental property if the owner prefers. Unlike residentially zoned condos, certain banks have mortgage restrictions for this type of property. As a mortgage broker I am up to date on which banks currently mortgage these properties and which do not.

2)  Phase 2 Hotel Condos – Zoned in a similar fashion to phase 1 hotel condos, the big difference for phase 2 hotel condos, is the property only being available for use by the owner for a limited number of days annually. It is common for phase 2 restriction parameters to be as follows:  property use for 28 days in the spring/summer months and 28 days in the fall/ winter months, plus 15 extra days on short notice.

For phase 1 & 2 hotel condos, the rule of thumb regarding a mortgage and down payment is 35% down. However, depending on your circumstances it may be possible to provide you a mortgage with a lower down payment.

For more information about a mortgage for your hotel condo please email me at: