Re: Higher investment loan rates for my holiday home?
Posted: Fri Jun 12, 2015 2:48 pm
Hello awesome.
Welcome to the forums.
Lenders will consider the predominant purpose of your property before giving out a home loan. As your holiday home is expected to generate income for over 6 months in a year, it’s likely you’ll qualify for a residential investment loan to finance the renovations.
You won’t need to pay a higher interest rate for your holiday home and will likely qualify for standard competitive interest rates unless you’ve got bad credit or you’re in a bad financial situation.
If you have a bad credit history; you have defaults, judgments, missed repayments, too many enquiries or any debt agreements on your credit file then you may need to apply with a specialist lender at a higher interest rate.
By the way, will you be fixing your investment loan or going variable?
Cheers,
Otto
Welcome to the forums.
Lenders will consider the predominant purpose of your property before giving out a home loan. As your holiday home is expected to generate income for over 6 months in a year, it’s likely you’ll qualify for a residential investment loan to finance the renovations.
You won’t need to pay a higher interest rate for your holiday home and will likely qualify for standard competitive interest rates unless you’ve got bad credit or you’re in a bad financial situation.
If you have a bad credit history; you have defaults, judgments, missed repayments, too many enquiries or any debt agreements on your credit file then you may need to apply with a specialist lender at a higher interest rate.
By the way, will you be fixing your investment loan or going variable?
Cheers,
Otto