Financing a chalet: Mortgage or Loan?

A chalet as a holiday home or as an investment. Financing your chalet with your own money means being the owner immediately and having no financing costs. You can recreate in your chalet as an owner, but you can also rent the chalet and in this way generate extra income with the chalet. Whatever your goal is, most people do not have sufficient financial resources of their own. Then you look for possibilities. Are you taking out a mortgage or a loan? We are happy to advise you which loan type fits your situation.

Mortgage for chalet

Mortgage for chalet

 

Financing a chalet through a mortgage is no longer possible due to stricter regulations regarding mortgage lending; only the first home can be fully financed from a mortgage. A second home, such as a chalet or holiday home, is only financed to a limited extent by the bank. You will have to contribute most of the financing yourself.

Mortgage interest deduction and surplus value

In the Netherlands we have the favorable tax measure for mortgage interest deduction. This is not applicable in this case because the benefit rule only applies to the first home.

It is, however, possible to use the surplus value of your current owner-occupied home to pay for the chalet. You then increase the mortgage and your chalet will be financed from this increase.

Another possibility for financing a chalet is through a loan

Loan for a chalet

Loan for a chalet

 

Financing your chalet with a loan instead of through your mortgage can be done with two forms of loan: a personal loan or a revolving credit. The duration of a personal loan compared to a mortgage is short: a maximum of 10 years compared to 30 years. When taking out a personal loan, the interest and the term are fixed. With this your monthly charges are fixed. Compared to a mortgage increase, the monthly costs of a personal loan are higher (due to the shorter term at the same loan amount). With a personal loan you do not pay advice and closing costs while with a mortgage you do have to deal with closing costs and extra costs for the notary if the registration on the property is not high enough.

The term of a revolving credit is not fixed. The interest rate fluctuates and is subject to interest rate fluctuations. If you borrow more than the required loan amount, you have extra money at hand for, for example, unexpected costs. This loan form gives you flexibility and more control over your own money.

You can redeem extra for both types of loan free of charge and use this to repay your loan earlier. With a mortgage you can only repay a certain amount without penalty.

Personal Loan for a chalet

  • Borrow a fixed amount once
  • Fixed interest and duration
  • Borrow up to € 150,000
  • Pay off extra without penalty
  • No closing costs or consultancy costs
  • Advice from qualified advisers

Apply for chalet financing

Apply for chalet financing

 

A chalet as a recreation or investment. Regardless of the destination you buy the chalet with, we offer you favorable interest rates and associated conditions with a customized loan. We will prepare a quotation for you after you have completed our loan application form. This is completely free and without obligation! You can then make a choice and we will start working for you so that the bank can proceed to pay your loan amount.

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