What is the difference between permanent and secondary own housing in credit?
When you apply for a home loan, the conditions proposed by the bank will differ depending on the purpose you give to the property: primary residence or secondary. Understand the difference between the two and the financing conditions for each.
If you are looking for a mortgage for your new home, it is with Poupança no Minuto! Credit intermediaries assist you so you can get the best market conditions. Contact us or read first what conditions they can offer you.
What is the difference between primary and secondary permanent own housing?
The difference between the purpose of a permanent own residence and a secondary residence is that the first is intended for the dwelling of the owner and their respective household, being their fiscal address, and the second is intended for occupation during occasional periods by the owner, such as a vacation home.
What is the impact of the two purposes on housing credit?
In the end, what differentiates the purposes are the taxes to be paid, as well as the conditions of access to financing proposed by the banks.
This is because a second home loan for the purchase of a vacation home, investment, or rental property will have worse conditions than for a primary residence with a first loan, due to the debt-to-income ratio.
Having a mortgage loan already, the effort rate will be higher and the conditions less favorable.
The biggest difference will be in the loan percentage that the bank is willing to provide, in other words, in the loan-to-value. The maximum that banks lend for a secondary housing property is up to 80%, while for primary residence properties it is up to 90% of the value.
Note that, in both cases, the amount borrowed from the bank is under the lowest value between the acquisition or evaluation value.
The remaining conditions will depend on the banking institution, but as a rule, interest rates do not differ from the first home loan. The financing term for a secondary loan may be limited to 30 years, regardless of the age of the holders, with a maximum age limit of 75 years for the oldest holder at the end of the contract.
Taxes are also paid similarly to buying a permanent own house, as you also have to pay Stamp Duty (IS) and Municipal Property Transfer Tax (IMT) at the deed.
However, the amount to be paid for IMT differs in secondary housing, having a separate table. There is an exception that in a second home, there is no right to exemption from the Municipal Property Tax (IMI), and you still need to declare the capital gains from the secondary housing in the IRS settlement.
Looking to hire a home loan for one of these purposes? The credit intermediaries of Poupança no Minuto can ensure that you access the best financing conditions in both cases! Contact us for a free support service throughout the process, handling all bureaucracy and communication with entities.