4 Ways To Finance Your Second Home

We recently shared with you tips to buy a second home. Now, the next question that hits you is how to finance this property. MakaanIQ lists five ways in which you could do so: 

Second-home loan

You can apply for a home loan for your second home, too. However, banks are much stricter in such cases and do a proper study of your financial standing. On the other hand, banks would prefer giving you a loan if the market value of your first property is higher than the second one. In case the bank is still not convinced, you could also take the second home loan backed your investments standing. This would include shares, jewellery, mutual funds and insurance.

Top-up loan

If you don't plan to take a separate home loan and want to add to the existing EMIs you are paying for your first mortgage, opt for a top-up loan. Applying for a top-up loan would also save you the trouble of getting into the new loan-taking process. To know more about top-up loans, read here.

Loan against property

When buying a second home, you could use your first home as an asset against which you could take a home loan. Known as a loan against property, this loan given against the current market value of your property. To know more about loan against property, read here.

Rent the first property

If you have bought a second home because it suits you better to live here, you could rent out your first property. This would help you in paying the EMIs for your second home.