Buying a second home, what should I look out for?
Planning to buy a second home? For example, a holiday home or a house for the kids? Not a bad idea! Just be aware that there are a number of things to consider. After reading the blog, you will be fully informed!
Second home mortgage
A mortgage for your second home works differently to a mortgage for your first home. It is possible to get a mortgage on a second home under certain conditions. These conditions vary from bank to bank, but the most common conditions are as follows:
You must not live in the second home permanently.
The second home must be fixed and built on a foundation.
You may finance a maximum of 70% to 80% of the home value with the mortgage.
When mortgaging a second home, you are not allowed to deduct the mortgage interest from tax.
Buying a second home with a surplus value
Do you have a surplus value on your current home? Then you can partly or even fully finance your second home with this. You then increase the mortgage on your current home by the amount of the surplus value. You can then spend this money on your second home.
If you do this, you have to be careful that the mortgage lender will check whether you can afford the new monthly payments.
Renting out your second home
You can also buy a second home to rent out. Even then there is an option for a mortgage, this is also called the rental mortgage. A rental mortgage is a mortgage for an investment property. There are conditions attached to this mortgage, but they differ from one mortgage lender to another. You are often allowed to finance up to 70% of the market value.
Second home abroad
A house in Spain, lovely! Many people would like it, we guess. Yet there are a number of hooks and eyes to buying a house abroad. This is because there are few banks in the Netherlands that provide mortgages abroad because this involves greater risks for the banks. After all, they have less visibility on the properties. So do proper research on whether there is a bank in the Netherlands that can provide a mortgage, or look at the banks in the country of purchase.
So it is possible to get a mortgage on a second home. Do check carefully what situation you are in. After all, it differs whether you buy a house in the Netherlands, abroad, for your own use or to rent out.