Financing for the purchase of cottage – residential finance

Mortgages and loans from a bank seems attractive

Mortgages and loans from a bank seems attractive

Read this about financing for the purchase of a cottage or new home. Such a finance project is something that should be thoroughly reviewed.
Many families will probably go out to look at homes and cottages during the Easter holidays – and some buy as well – so now just hope for a sunny summer. Would you like to be one of those who enjoy the new experience as a homeowner? Then you should be comfortable with the idea of ​​how to fund such a large purchase. The choices are many, and a combination of mortgages and loans from a bank seems attractive.

It is possible to include mortgages of up to 60 per cent of the value of the cottage, and the rest must be financed in other ways. It may be possible to borrow from the bank or mortgage some equity in the year-round housing.

Flexible choices

Flexible choices

In recent years, the banks have had great success with their corresponding flexible mortgages with a common name called mortgage. But unlike mortgages, you can with multiple banks to finance up to 80 percent of the summer house value.

This makes it natural to use a combination where the first 60 percent is financed through a loan, while the next 20 percent is financed with a loan. If full financing is needed, the last fifth is thrown either through a traditional bank loan or equity release in the year-round home

Mortgage repayments

Mortgage repayments

Particularly, mortgage repayments have become popular with buyers of vacation homes, and over the last six years or so, especially those with fixed rate loans with repayment periods have been popular. Including VAT. The contribution rate is just under six percent, while interest rates on mortgage loans vary and are usually in the range of four to eight percent.

The advantage of banks’ mortgages is flexibility, which in principle acts as a overdraft facility and therefore the same rate on deposits and loans. It also means that the borrower himself decides when to pay installments – and when redemptions the freedom to utilize.

Remember other expenses

Remember other expenses

The biggest cost of a holiday is financing the cost, but there are other items as well, be sure to count. This applies to property costs, property taxes, insurance, refuse collection, etc. and the costs of the program such as electricity, heat and water.

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