Buying a second home requires having sufficient debt capacity but also to go through the financing stage, obtaining the best rates allows you to buy more or reduce the duration of borrowing. Here are the tips to follow to get a mortgage at the best rate.
Second home, get a mortgage
Many owners are interested in acquiring a second home, it may be a property dedicated to leisure, holidays but it can also be a housing dedicated to the rental, in the idea to collect income afterwards. In both cases, it is essential to take stock of the finances of the home, ie to determine the capacity to borrow, to check the presence of a possible contribution and then especially to obtain the trend of rates on the home loan market today.
To invest in a second home, it is important to quantify the amount of the purchase but also the ancillary costs, namely the costs of rehabilitation of the housing if necessary and taxes and other taxes that will be owner’s charge. A possible saving with the best rate is therefore welcome for the borrower.
Validate the mortgage loan for a second home
Getting a second home loan is possible from the moment the borrower has the ability to borrow, so first determine the amount that the applicant is able to bear with his current finances, this borrowing capacity is naturally assessed when applying for a home loan.
For households that have already repaid their main mortgage, this formality will also be necessary but in the absence of loans in progress, obtaining will be facilitated. It is of course necessary to justify a stable employment situation, ie a permanent contract or a retirement pension.
The contribution is an important issue because in this type of financing, few households can make a contribution, especially when a loan is already underway, it should be known that the banks are able to offer real estate loans in adapting to each situation, the contribution is not an obligation to obtain an interesting rate.
Simulate online to get the best rate
Online simulators can quickly obtain a home loan estimate for a second home purchase, it is naturally necessary to inform the amount of the loan and information specific to the situation of the borrower. After validation, it is possible to obtain several financing proposals taking into account the situation of the applicant and the need formulated. The advantage of an online simulation is to be able to compare very quickly the proposed rates, it allows to start negotiations to validate the best rate.
It is important in this type of loan to think about also negotiating borrower insurance, which can be a good part of the cost of credit. The simulation of a borrower insurance can therefore be a good opportunity to reduce the amount of monthly payments. The evaluation of an offer for a borrower insurance is done.