Can I get another mortgage for a second home?

How much can I borrow for a second home?

Buying a second property is a common thought for those who are financially comfortable with the mortgage on their existing property. Finding a suitable second home mortgage means weighing up what your financial goals are and what kind of second home you want. Do you want to buy a holiday home, are you looking for an investment property, or is your request for a second home mortgage simply that you want to sell what was your first ever home and upgrade to a new one, or downsize now that the kids have flown the coop?

Either way, Mortgage House can help with a range of suitable second home mortgage options. The first thing for home buyers to consider is how much they may be able to borrow for a second home mortgage. Our Borrowing Calculator below is a great place to start. Simply enter all the information in as accurately as you can, and we’ll give you an indication of your borrowing power, as well as an idea of what the second home mortgage repayments may be.

Can my equity help me get a second home mortgage?

If you’re looking for a suitable second home mortgage to buy an investment property, then you may be able to use the equity you have built up in your existing property. Equity is the current property value of your home, minus the amount you still have to pay off your home loan. If your home is worth $700,000 and you still have $500,000 left on your mortgage, then your equity could be as much as $200,000.

You may be able to use this equity as security for a second home mortgage, to buy another property. The more equity you have the easier it may be to get a second home mortgage from Australian banks and lenders. Equity is just another reason why making additional repayments to the mortgage on your existing property can make a big difference. Mortgage House offers a range of both variable and fixed rates home loans that allow you to make additional repayments without being penalized. As well as helping you build up equity faster, you can also pay off your mortgage quicker, saving thousands on interest over the life of the loan. As you grow the equity in your investment property, the equity in your existing property continues to grow as well.

What will my repayments be?

One of the important factors for home buyers when searching for a suitable second home mortgage is working out what your repayments will be, whether you choose variable or fixed rates. One of Mortgage House’s key missions is to provide their customers with all the tools, knowledge and experience we can provide. One of those tools is a Mortgage Repayment Calculator. Our range of loan calculator options provide you with extra information to help making finding a suitable second home mortgage easier. Using a Mortgage Repayment Calculator is simple.

Once you have identified a second home mortgage you think may be suitable for you, adjust the information on the left of the tool below accordingly and you’ll immediately receive an indication of your mortgage repayments, weekly, fortnightly and monthly. A graph will also indicate how much of your loan will be made up of the principal amount and how much of it will be interest – as well as how much interest in total you will pay over the life of the loan.

When you are looking at the figures, it is important to also understand the fees and charges that come with the loan you are looking at, to get a full picture of the total repayment. A good way to do this is to use the Comparison Rate of the home loan, rather than the advertised variable or fixed rates. This makes comparing second home mortgage options a little easier, as Comparison Rates take into account probable fees and charges.

What loan options do I have?

If you are looking for a second home mortgage you probably have a good idea of the types of home loans that may be suitable when you’re buying a second property. At Mortgage House we can offer you home loans that will both jump start your plans and put you in charge of your decisions. Whether it’s variable or fixed rates you are after, we offer a range of different options, including:

• Split home loan. A split second home mortgage gives you the opportunity to divide your home loan into two separate parts – one with fixed rates and one variable. You can change the split percentages as you wish and have access to features such as a line of credit.
• Toggle offset home loan. These mortgages are similar to a split home loan, but the two portions are split evenly. Offset accounts can be linked to both halves.
• Portable home loan. Mortgage portability allows you to take a home loan with you when you move, eliminating exit fees and stamp duty.
• Interest only home loan. These home loans allow you to repay the interest only section of your home loan, not the principal, for up to 10 years. This can free up cash for other things and can also be useful if you are buying a second property solely as an investment opportunity.
• Low deposit home loan. If you are looking for a second home mortgage, a home loan that allows you to have a lower deposit may be suitable, especially while you are still paying the mortgage on your existing property.
• Low Doc home loan. If you are self-employed or a freelancer, there is every chance you don’t have the full list of documents banks or lenders require to lodge an application. This is where Low Doc home loans can be suitable for you and your family.

What features are included in a second home mortgage?

As well as offering a range of different types of second home mortgage options, Mortgage House also has a large range of features that can benefit home buyers of all kinds, including if you’re buying a second property for an investment, as a holiday home or with a plan to move. These features include:

• Additional repayments. Save money over the life of your loan by being able to make additional repayments without being penalized. Paying off more than the minimum repayment amount means you could pay off your mortgage sooner and save thousands on interest.
• Redraw. Make the most of your additional payments today, by being able to withdraw on them, and any additional lump sum payments you make, at any time and for any reason.
• Offset account. Link a non-interest-bearing bank account to your mortgage and only be charged interest on the difference between the two, not just the home loan amount.

Mortgage House

At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.

But don’t worry, we can help with that.

If you’re thinking about a second home mortgage and are ready to make the next move buying or investing, you can contact us for information about the best options for you when it comes to your second mortgage. Click here to speak to us!