Funding a vacation home

Have you found the vacation home of your dreams? Then it is important to know how you can finance it. There are several options for financing a vacation home in the Netherlands. So even if you do not have enough savings in the bank to fully finance the vacation home you can still buy a vacation home. We list the various possibilities for you.

Recreational Mortgage

Not only for a residential property, or first home, can you take out a mortgage. This is also possible for a vacation home, or second home. However, there are some important differences compared to a mortgage for a first home. There are only a few mortgage lenders who offer this type of mortgage. In addition, it is good to know that the mortgage interest is not deductible. Also, in most cases, a recreational mortgage does not provide full financing for the home. So you will still need to partially finance the home with your own money.

Increase mortgage with excess value

A second option is to use any excess value on your first home for financing. By increasing your mortgage on the basis of the surplus value, capital is released which you can invest in a vacation home. It is also possible in certain cases to make a combination between a recreational mortgage and using your excess value.

Financing vacation home

Personal loan

You can take out a so-called personal loan at various lenders. The amount you can borrow is different for each lender and depends on your personal situation. You take out a personal loan for a fixed interest rate and a fixed term. Often the term of a personal loan is relatively short, so you have higher monthly costs than with other forms of financing.

Loan from own company

This form of financing is possible in case you have your own company. You borrow money from your own company to yourself as a private person. Be sure to inform yourself well in advance about the tax aspects of this loan.

Advise & more information

There are many tax issues involved in purchasing your own vacation home. That is why it is always important to seek advice from a financial advisor. He or she can determine the best form of financing for your personal situation.

Do you want more information about buying a vacation home at Marina Resort Leukermeer? Contact us to make an appointment on site or request our brochure.

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