Financing a recreational home: Loan or (2nd) mortgage?

How do you finance a recreational home?

How do you finance a recreational home?

You have your eye on a recreation home. How do you arrange financing? If you have part of your own money, you can use it and finance the rest of the amount with a loan. Do you not have your own resources? Arrange the financing with a mortgage or take out a loan. A difficult choice? We put the facts side by side so that you can choose the most suitable option that matches your wishes and your financial and personal situation.

A mortgage or loan? The facts at a glance

A mortgage or loan? The facts at a glance

You can take out a second mortgage for the holiday home. If you have surplus value on your owner-occupied home, it may be possible to use this for financing this second home. Bear in mind that with a second mortgage you are not eligible for interest deduction. You only have this tax benefit with a first home.

Maximum 75% mortgage

Maximum 75% mortgage

Taking out a second mortgage is not a matter of course. The rules regarding mortgage lending are becoming stricter. Banks are cautious and, in the case of a second mortgage, close a maximum of 75% of the value of the second home. You have to finance the remaining part in a different way.

Notary fees

Taking out a mortgage entails extra costs. You have to pay the broker / appraiser and notary and advice and closing costs are charged. There are exceptions to notary fees to be paid: in the case of a (mobile) caravan you are not dealing with a notary. This also applies if you purchase your recreational home from a recreational park. With a loan you never have to deal with these extra costs. In addition, taking out a loan is faster than raising a mortgage.

Partial financing

You partially finance the holiday home if you do not have enough of your own money or if you do not want to invest all your money in the home. Money that you invest in your holiday home is no longer freely withdrawable and disposable, since it is in your “investment”. If you want to keep money freely disposable and withdrawable at hand, it is a good idea to use part of your equity and finance the rest.

Financing with a loan

Financing with a loan

The maximum amount of the loan amount depends, among other things, on the type of holiday home. Is it a (mobile) caravan, chalet or an apartment? We have a suitable responsible loan with low interest rates from 3.9% for every loan target.

Personal Loan or Revolving Credit

Personal Loan or Revolving Credit

You can theoretically opt for a Personal Loan or Continuous Credit. A Personal Loan offers security thanks to the fixed interest rate, term and monthly charges. The bank pays you the total loan amount once, so that you can pay for the cottage or chalet. You are debt-free on the end date.

Choosing a Continuous Credit means flexible borrowing. You decide when and how much you withdraw from your loan amount. The interest and duration are variable, the monthly charges are not.

On both the Personal Loan and the Revolving Credit you can repay without penalty during the term. You do not receive a tax benefit with a loan for a recreational home; the interest costs are only deductible for a first home.

In practice, we recommend a Personal Loan for the recreational home loan. We offer favorable conditions with all loans.

Destination second home

Destination second home

Finance a second home as an investment, or do you buy it for your child (ren)? Our credit specialists can think along about asset growth through favorable investments and investments, how you can use the return on rental income in a smart way or how you can help the children get started with their first home. Whatever the purpose for your second home, we think along with you and ensure that you take out the most suitable loan. Even if you only need a loan for a part of the purchase amount of the holiday home, you can contact us.

Request quote

 

You can use our quotation form to request the loan of your choice. You enter your details and submit the application. We will then contact you to complete the application so that we can send you the most suitable and affordable offer. Borrowing is tailor-made, so we always offer you a loan that matches your situation.

Real Estate Loans: Rates Will Stay Low Until The End Of 2013

Will rates continue to fall? The issue has been at the center of the debate since the ECB did not announce the long-awaited drop in its key rate. While no expert dares to comment on the rate forecasts, HCI Bank announces that rates should remain low until the end of the year. As early as March 2013, HCI Bank predicted a rate stabilization see a decline while all his peers announced a rise! Analysis that proved fair since the rates recorded a decrease of the order of 0.10 point in April.

 

HCI Bank announces

HCI Bank announces

The real estate loan rates will not increase in 2013 One of the main reasons, the interest rate of financial markets (OAT 10 years), used as a benchmark for fixed rates of real estate loans decreased and rose to 1.73% as of April 8, 2013 (compared to 2.04% as at 02/04/2013). The EC Bank (ECB) kept its key rate at its all-time low of 0.75%. Even if, for now, the ECB has not announced a further decline, it should theoretically decide to lower its key interest rate to an unprecedented 0.50% before the end of the year because there is no risk of inflation in Europe in the medium term. In addition, banks that have largely rebuilt their margins in recent months and have significant liquidity to finance projects of their customers, should take the opportunity to lower their interest rates to capture a new clientele.

Today, future buyers who have a personal contribution and a stable situation can get a loan around 3.10% over 20 years. For the moment, an increase in mortgage rates is not envisaged if the OAT continues to stabilize, and does not increase dramatically over the next few weeks. In this context, there is no reason to expect a rate hike in the coming months, subject to external events in France and Europe.

 

HCI Bank, an independent broker definitely free!

bank loan

HCI Bank continues his fight for a higher quality service by offering file fees to his clients *. HCI Bank relies on the internet and dynamic sales teams to market real estate loans at the best market conditions efficiently, transparently and free of charge. “Our business model aims to minimize costs in order to offer a fee of 0 euro *, while ensuring a high quality service. “

One piece of advice, do not wait any longer to buy or redeem your home loan. If you run out of time, prefer a “no cost” broker to the banker. Soliciting it will enable you to obtain negotiated rates (0.25% to 0.50% lower than a standard bank rate) and save up to 60% on the cost of borrower insurance through a delegation. less expensive insurance and with guarantees equal to those of the banks.

Lower interest for personal loan and revolving credit

The interest continues to fall, also at Creditomor You can borrow money at an even lower interest rate since 1 February. You can already take out a personal loan from the low fixed interest rate of 4.6%. You already have a revolving credit from the low variable interest rate of 4.4%.

This lower interest rate applies to both taking out a new loan and transferring your current loan. Loan borrowing? Calculate here what you can save.

Improved loan conditions

Improved loan conditions

The interest rate has been decreasing for some time. You notice that with a lower interest rate for your savings, a lower interest rate for your mortgage. But also taking out a loan can always be cheaper. In addition, since 1 February you have benefited from improved conditions for your loan. Consider, for example, the penalty-free extra repayment of a personal loan. But the final age at which you can take out a loan has also been raised. In addition, as the owner of a owner-occupied home, you benefit extra thanks to the special loan products for homeowners.

Lower interest rate personal loan

Lower interest rate personal loan

Since 1 February, a personal loan can take out interest from 4.6% interest. This loan is very suitable for people with a specific loan objective. Think of buying a car or renovating your house. You borrow a fixed amount once, which is deposited into your account in one go. The interest on your loan is fixed for the entire duration of your loan. That way you know exactly what you spend on your loan every month.

Compare revolving credit

Compare revolving credit

The alternative to a personal loan is a revolving credit. A revolving credit is a more flexible loan. Instead of borrowing a fixed amount once, you agree on a maximum amount to be withdrawn. You can withdraw money from this whenever you want. You can also repay extra with a financial windfall without extra costs. You can then withdraw the repaid amounts. You already have a revolving credit at an interest from 4.4%.