Need financing for your holiday home? Recreation home financing requires expert advice. There are different types of interest and amortization methods. The interest paid is higher than that of a mortgage on a first home and is not deductible. Any rental income is free of income tax. Your holiday home, however, falls in box 3; the (im)movable property part of your investment is subject to capital gains tax.
A few years ago, many banks decided to make no or minimal credit available for the purchase of a holiday home. In order to increase the chance of a positive recommendation on your mortgage application, you must take into account a number of specific game rules:
When purchasing a holiday home, personal cash is required (freely disposable resources and/or equity), the amount of own money required is different for each bank and may partly depend on the appraised value.
A few years ago, many banks decided to make no or minimal credit available for the purchase of a holiday home. In order to increase the chance of a positive recommendation on your mortgage application, you must take into account a number of specific game rules.
Ten important things at a glance:
- The number of banks that finance holiday homes is limited, so submitting it correctly in one go is of the utmost importance;
- The criteria set for financing a holiday home are very different from the criteria for a first home. It is also important whether you rent out; some banks include the proceeds as income and therefore increase your borrowing capacity;
- Is the home built on private land?;
- Is there a connection to utilities?;
- Is the home movable or not (fixed foundation)?;
- Does the house have its own bathroom/toilet and heating options?;
- Is the minimum forced sale value €100,000?;
- Opportunities are usually found in consumer credit. Provided your income and financial capacity are sufficient, it is possible to receive credit up to € 75,000;
- VAT financing is usually not possible. Some parks have solutions for this. You can ask us for the possibilities;
- It is never possible to co-finance the inventory.
- The number of banks that finance recreational accommodations is limited, making it important to submit your first application correctly;
- The criteria for funding of a recreational accommodation are very different from the criteria for a first accommodation; Whether you will be letting it is important. Some banks include the revenues and thereby raise your loan capacity;
- Whether the accommodation is situated on private land;
- Whether there is a utility connection;
- Whether the accommodation is mobile or not (immovable funding);
- Whether the accommodation has its own bathroom/toilet and heating possibility;
- Whether the minimal execution value is €100,000;
- Possibilities are often found in consumer lending. As long as your income and financial capacity are sufficient, it is possible to be granted a loan of up to €75,000;
- VAT financing is often not possible. Some parks offer solutions to this. Please ask us about the possibilities;
- You are never able to include inventory in the funding.