To subscribe two real estate loans is quite possible, it is above all the ability to borrow from the applicant that allows to know if cumulation is possible. Here’s all there is to know about the accumulation of two home loans.
Subscribe to two real estate loans
The mortgage is a financing whose minimum amount is 75000 euros and can be used for two operations: buy real estate and / or finance work in real estate. Regarding an acquisition, the mortgage can be as well a first acquisition as a second home or a rental investment. The home loan comes with a guarantee, which can be a mortgage on the purchased property or a bank guarantee, that is to say that a company stands surety to guarantee the repayment of the debt.
When applying for a home loan, the bank will conduct a solvency study, that is to say that it verifies that the borrower has the financial capacity necessary to repay the debt, in the limit of a debt of 33%. If the financial capacity allows, the borrower can even subscribe two real estate loans successively and repay two monthly installments.
Real estate loan: acquisition and rental investment
Many borrowers have already made a first acquisition in their personal capacity, that is to say that the mortgage has financed the purchase of a house or apartment that has become the main residence. Simply, the conditions being interesting, a borrower having the possibility to accumulate financially a second monthly payment can quite solicit a loan with the habitat to invest in the rental. The rental investment is simply to buy a property and then rent it and collect income, it requires that the investment is profitable, it is the rate of return.
Banks are not against the subscription to two mortgages, on the contrary. When the borrower has sufficient financial capacity, he can fully accumulate both debts and realize his various projects. The issue of optimizing repayments may, however, arise, ie some banks specializing in mortgage lending propose, for example, to group the two mortgages together to repay only one monthly payment. an interesting operation when rates are reduced.
Should we keep 2 home loans or consolidate them?
If the borrower has sufficient financial capacity to accumulate two home loans, there is room for optimizing the repayment of credits, whether personally for his first acquisition or as part of a rental investment. The interest is to adjust the amount of monthly payments to allow the borrower to finance other projects or simply to take advantage of low rates to renegotiate the terms of borrowing. It is therefore advisable to use a housing loan simulation but also a mortgage buyback, to consolidate the two projects together.
To know that a rental investment made with an SCI will not be concerned by the credit consolidation because if the first financing was subscribed in a personal capacity, it is simply two separate entities. The cumulation is obviously possible.