Before embarking on the purchase of a second home, it is important to find out about possible financing solutions.
Assisted loans such as the Zero Rate Loan (PTZ) or the Equity Loan can finance part of the purchase of a principal residence but do not concern second homes. Therefore, it can be more difficult to finance a secondary home entirely by credit. In this case, the amount of the personal contribution is decisive.
What real estate credit to buy a second home?
Borrowers who wish to buy a second home can not benefit from the assisted loans that are reserved for the acquisition of a principal residence. However, it is possible to use housing savings loan (PEL) and home savings account (CEL) to boost his personal contribution and thus reassure the bank. It should be noted that the ELP can be mobilized for the purchase of a second home as if it was opened before March 1, 2011. After that date, it is for the purchase of a principal residence.
To finance this new property, you can take out a classic home loan. In most cases, the banker offers a mortgage of the principal residence provided that the borrower is fully owned, ie the loan has been fully repaid. Family loans are also allowed. The borrower must then authenticate the member of his family who grants him a loan by contract (private deed or notarized loan).
Finally, if the bank refuses to grant you a classic home loan to finance the purchase of your holiday home, you can still use the rechargeable mortgage. This solution makes it possible to subscribe a new loan whose guarantee is ensured by the initial mortgage. This possibility must nevertheless be provided as soon as the loan is taken out.
Finance your second home with a personal contribution
Before subscribing, you will have to take stock of your savings by determining your purchasing power. For this, you must take into account your current credits, your other expenses and your personal contribution. These expenses must not exceed 33% of the household’s net income. Remember to include in this calculation the amount of property tax and condominium fees.
To put the odds on your side, it is advisable to make a personal contribution. The more it is consistent, the more the bank will be willing to accept your mortgage application.
Real estate credit: how to get the best rate?
You want to find a mortgage for secondary house at the best rate? Comparing offers is the best solution. To begin, complete an online form indicating the characteristics of the desired loan and some information about your profile. In a few clicks, you can benefit from the best rates on the market.
The use of an online mortgage simulator is essential today given the large number of available offers.