A second home can be bought for various purposes: as a holiday home (for yourself or for rental), as a home for a child or parent or as an investment.
For a first home you take out a mortgage and the interest costs are tax deductible. It is a lot more difficult to get a mortgage for a second or recreational home and the interest costs are not deductible. Financing by means of a consumer credit is a good alternative if a mortgage does not work. We list the differences.
You can finance your second or holiday home by taking out a second mortgage, but nowadays this is possible with fewer and fewer banks. In most cases, the bank will not fully finance the second or holiday home with a mortgage. You will have to contribute part of the costs from your own capital. You can use the equity on your first home or savings for this. If this is not an option, you can take out consumer credit.
A consumer credit also has advantages over a mortgage. The interest on a mortgage may be slightly lower than the interest on a Personal Loan or Revolving Credit, but the term of a Personal Loan or Revolving Credit is a lot shorter; maximum 10 to 15 years. As a result, the ultimate costs that you pay are lower with a loan. And you do not have to pay additional closing costs or go to a notary to have the deed executed.
With the mortgage on your first home you have a tax advantage in the form of a tax deduction of the interest costs . You are not entitled to interest deduction at a second home. This also applies to the loan for your holiday or recreation home; the interest costs are not tax deductible.
Do you have a current mortgage with Rabobank or ING and are you unable to take out a second mortgage? We offer you low interest rates and favorable conditions when taking out a consumer credit. You do not pay any closing and advice costs with us.
How do you want to finance your second home? Our credit or mortgage specialist will be happy to discuss all the options with you and give you comprehensive advice .
If you know which loan you want to take out to finance your holiday home, you can request a quote online without obligation . We will send you an offer from our partner banks and after you agree to one of the offers, we will arrange your loan.
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