Mortgage or loan as financing
You want to buy a chalet and for the financing you would like to choose the best option within your possibilities. Which form of financing best suits your needs? A mortgage or a loan? Below we discuss both options for financing your chalet.
With the current strict regulations, it is only possible to take out a full mortgage for a first home. For a second home , holiday home or chalet you can only finance a small part with a mortgage.
The mortgage interest on the first home is tax deductible. This tax benefit does not apply to a second home. However, you can use the equity of your current owner-occupied home to co-finance the chalet. Your current mortgage is increased by the equity on your house and you can use it to purchase your chalet.
Do you have no equity on your owner-occupied home? Or do you not want to increase your mortgage because of the long term (30 years) and the additional costs (appraisal, notary fees, mortgage adviser consultancy fees). Then a consumer credit such as a Personal Loan or a Combination credit is a good option.
With a Personal Loan you borrow an agreed amount once, at a fixed interest rate and a fixed term. This gives you the safety and security to borrow money for your chalet as responsibly as possible.
With a Personal Loan, the term, the interest rate and the monthly charges are fixed. The bank deposits the loan amount into your account once and you pay the chalet. The term of a loan is shorter than with a mortgage, up to 10 years.
You may always repay your Personal Loan without penalty, in part or as a whole. This way you can reduce your debt even faster or you are even debt-free. With a mortgage you can only redeem a certain amount extra free of charge.
If you need a higher loan amount for the purchase of your chalet (from 50,000 us dollars), a combination credit is a suitable loan form. You can borrow up to 150,000 us dollars from us. This distinguishes us from other credit providers that provide a lower maximum loan amount.
You can borrow such a high amount from us because we place the loan in installments with several of our partner banks. As a result, the risk for the banks is low, which translates into a low interest rate.
The Combination credit consists of two Personal Loans or one part Personal Loan and one Part Continuous Credit. With this last form of a Combination credit you combine the security of a Personal Loan and the flexibility of a Revolving Credit. If you opt for two Personal Loans, you always have a fixed low interest rate and your monthly payments are fixed for the entire term. The conditions are favorable; for example, you can always make extra repayments on the loan in the meantime without penalty.
Why borrow from us?
- Lowest fixed interest from 3.5%
- Compare interest, conditions and payment date in one overview
- With 1 request a complete and realistic offer of 5 banks
- 100% online, so no expensive offices required and therefore lower costs
- No expensive advisers needed and therefore cheaper than the big banks
- Specialized in credits only
- Fast, error-free and inexpensive
- Always pay extra without penalty
- Money back guarantee!
Borrowing tips for a chalet
- If you buy a chalet, you also rent a piece of (recreational) land, for example from a private person, campsite or municipality. There is no rental protection on that piece of land, as with private houses. If the lease is tacitly renewed every year, the landlord may in principle terminate the contract after each year. That is why it is wise to buy a chalet that is movable, so that you can move to another place.
If you buy a chalet with a permanent pitch, you may no longer change this pitch. That is also why it is wise to look for a chalet without a fixed pitch / mobile chalet.
- What is the technical condition? It is also useful to have a structural inspection carried out for a chalet. This way you know what you are buying and you can make a good estimate of future maintenance costs.
- Take the extra costs into account.
What maintenance costs are involved in your chalet? Is there an Owners Association to which you must contribute? What are the monthly / annual energy costs and what does gas and water cost? What is the amount of the ground lease and what are the costs of the municipal taxes? It is wise to include these costs when determining your loan amount.
- Do you want to sublet the chalet? This is a great way to reduce your costs and even partially recoup the investment. Do research the possibilities and the (local) regulations carefully.