The purchase of an apartment for the purpose of rental investment or second home requires sufficient borrowing capacity, several financing solutions are available to support the borrowers in their projects.
Purchase of apartment and investment
Many borrowers have the desire to invest and real estate remains a strong value in the current economy, although prices may vary depending on economic conditions, the stone remains a very good investment, especially in the context of a wealth enrichment. Simply, to buy a second or a third property, it is necessary to have sufficient finances to be able to cover a new monthly payment, and several solutions are possible credit side.
Firstly, it is possible to resort to a conventional mortgage, it will simply be necessary that the debt ratio is compatible with the borrower’s financing project, and not exceed the threshold of 33%. The other solution is still to buy a home loan, when a loan is already underway to smooth the amount over a longer period and add the amount of the apartment, a tailor-made financing proposed by specialists of the mortgage.
The mortgage to invest in an apartment
The mortgage can be requested in connection with an apartment purchase of more than 75 000 USD and its duration can run up to 35 years of repayments. This loan, all in all classic, will require to take a guarantee, that is to say a mortgage on the property or a bank guarantee. The advantage of the mortgage is that it is dedicated to the property in question and will not affect the main residence, however, must have the ability to support a new monthly payment.
In the operation, it is enough to resort to a request for mortgage by exposing the project and its financial situation, the bank is in charge to study the feasibility and to propose a rate according to the amount and the desired duration, it is then possible to modulate according to its needs and its ability to repay. Note that it is possible to borrow two to have a larger capacity, via a SCI or more commonly in couples.
The purchase of mortgage credit for investing
The loan buyback is initially designed to allow borrowers to renegotiate their repayment terms by offering them a new rate, a new term and a readjusted monthly rate. If this funding is planned at the base to reduce monthly payments or save interest, it has been adapted for investors to allow them to include two mortgages in one. The interest is relatively simple: to standardize the rate and the guarantees to allow the financing to be realized.
You just have to submit a request for a home loan repurchase by specifying the desired amount for a new purchase and again, this investment is possible in SCI or as a natural person. On the other hand, this financing is only offered by credit institutions specializing in mortgage guarantees. The instruction of these files is said to be heavier than for a conventional loan, but always dependent on the organization that offers the financing.