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Caution! You are investing outside of AFM supervision. No licensing requirement for this activity.

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Caution! You are investing outside of AFM supervision. No licensing requirement for this activity.

Financing your recreational home

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Financing a recreational home in the Netherlands

Whether for your own vacation enjoyment or as an interesting investment; buying a vacation home is a wish for many. In the Netherlands, we have several options for (partially) financing a vacation home.

We would be happy to tell you more about the various financing options

Finding suitable financing for a vacation home is a specialty. Be well informed in advance by a mortgage advisor, he can help you find financial space by combining different forms of financing, for example. For example, financing can be achieved through part equity, part increase in the mortgage on your own home or on the holiday home itself.

Learn more about financing options
We have a partnership with ING's advisors, so they can inform and advise you about the various options. For the different financing options, read on or contact us so that we can put you in touch with the right specialists.

Tip: A mortgage advisor can help you map out your financial options. Curious about what else is involved in buying a vacation home in the Netherlands? We will gladly tell you more about it.

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Residence Lage Vuursche - Lodge Royal Eco 4 persons wellness hot tub - Interior - Dining room - 4
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Recreational home financing from your own funds

The easiest way to buy your own vacation home is using equity. The big advantage of this is that you pay no interest and have no additional costs. In addition, with Dutch banks, you get little to no interest on your savings. It can therefore be interesting to look for alternatives for your savings, such as buying your own holiday home. Our advisors can tell you more about the possibilities. Please feel free to contact us.

Recreational home financing by increasing mortgage of your home with excess value

Do you have excess value on your permanently occupied home? Then you may be able to increase the mortgage on this home and use this increase to finance recreational property. However, the bank or financial institutions will require that the second home serve as collateral for the loan.

The advantage is that, when you increase your current mortgage to finance a recreational home, it may not be required to repay it and the interest burden is often lower because there is no mark-up on the interest rate. The process of financing is the simplest with this option. We would be happy to tell you more about it.

Recreational home financing with loan from a limited liability company.

Do you have your own company? Then there are possibilities to finance your holiday home from this. You lend money from your own company to yourself as a private person. Always be well informed in advance about the fiscal aspects and tax conditions associated with this loan.

Recreational home financing with mortgage

It is also possible to finance a second home by taking out a mortgage. However, there is an important difference between a mortgage on a second home / recreation house compared to a mortgage on the first home. Here you should take into account that banks impose various conditions, for example, the use of the property and size of contribution of own funds. These conditions vary from one mortgage lender to another.

What should you know when financing a holiday home with a mortgage

  • You pay an additional interest rate on top of the regular interest rates.
  • The mortgage interest is not deductible.
  • Contribution of your own (savings) is required with this option.
  • The vacation home must meet several requirements. These differ per mortgage lender, for example: the vacation home must be on private land, not moveable, connected to water and electricity, habitable in all seasons and connected to the public road network.

Recreational home financing with a personal loan

You can also choose to take out a personal loan and use it to finance your vacation home. You can take out a personal loan from family or friends, for example, in which case you agree the terms among yourselves. Make sure you put everything in black and white and arrange it properly.

You can also take out a personal loan from the bank. In this case you will receive the full amount in a single payment. You repay a fixed amount each month, this amount does not change, at the end of the agreed term you are debt free. The disadvantage is that the interest rate on a personal loan is much higher than on a mortgage. This is because the house does not count as collateral.

Differences financing first home and vacation home

As you have read above, financing a second home / recreational home differs greatly from financing a first home. Obtaining financing for a second home is often more difficult than financing a first home. Banks or finance companies will pay closer attention to your financial situation and will often require that you put up part of the financing requirement yourself.

More information about financing a recreational home?

Then contact us without obligation. We are not mortgage consultants, but we can put you in touch with the right specialists. For example, the ING advisors we work with.

Contact us without obligation