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What you’ll get out of our FREE Second Home Buyers Guide
Feel empowered on your journey to home ownership by understanding every step of the process.
Build Future wealth for you and your familyMake a smart move and climb the property ladder with confidence.
Going from one to more home loans requires comprehension of ‘property investment’ terminology
Confirm what properties you can afford before you begin your search for the perfect second home.
much you can borrow
Get on your way to becoming a Second Home Buyer
With Mortgage House experience and our flexible loan products on your side, becoming a second home buyer is easier than you think. If you have built up equity in your current home and are considering becoming a second home buyer, you have plenty of loan options to make a smooth transition.
Let us answer your questions on buying a second property
As a second home buyer, what home loans are right for me?
We have a range of loans suitable for second mortgage finance in Australia. Being a second home borrower, your experience in previously purchasing a home will come in handy. In order to determine which mortgage product is right for your second home, here are a few second home buyer factors worth considering:
- What is your purpose for making a new property purchase?
- Are your budget and cash flow sufficient to cover all costs?
- Is it going to be an investment property?
- What is your preferred loan type and loan structure?
- How will your equity be used for financial benefit?
If you have been paying your present mortgage for a few years or more, you will have noticed variable interest rates fluctuate over time, and perhaps you will have knowledge around the opportunities that both variable and fixed interest rates provide. The temptation to change from fixed to variable interest rates, or vice versa, will arise at times, and knowing when to make a financial move is good money management, particularly when it comes to buying a second home and renting the first in Australia.
Your Mortgage House financial expert will explain the advantages of our second loan options in an easy-to-understand manner. We have the same purchasing power as Australia’s biggest banks, allowing you to choose a fixed rate, variable rate or another loan option. Our second home loan incentives and rewards can’t be beaten, including bridging loan products that are perfect for second home buyers.
Bridging loans are ideal for the scenario where you have found the perfect second home and are ready to snap it up but are waiting to sell your current home. Bridging loans are interest-only loans, backed by the financial collateral of both your current and future home. It’s worth understanding that you will be paying the interest portion of the two loans until your current home sells, so budgeting will be important. Your Mortgage House home loan expert is always on hand for advice and assistance that will help you purchase your second home for the right price with the best second loan solution. Find more valuable information in our mortgage tips checklist.
How do I manage loans to find my next home?
Are you considering upgrading to a new home but don’t know where to start? Making the transition from one home to the next doesn’t need to be difficult, and with a plan in place it can be smooth sailing. However, there are quite a few government and service fees that quickly add up, along with short and long-term loan incentives, so understanding how and where to save money is a strategy worth knowing about.
As an additional advantage over Australia’s biggest banks, our personalised service means your Mortgage House Lending Specialist is always on hand to assist with tailored advice. You can begin your home loan research using our mortgage loan calculator to find out how much you can afford to borrow. Based on your data, we may even be able to arrange pre-approval of your loan plan. The entire process can be carried out online in around 15 minutes, and if all is well, we can offer you conditional or pre-approval. These approvals in principle, are valid for three months, and are designed to help you snap up your dream home or get the ball rolling on your second home loan – find out more about pre-approval and conditional approval here! It’s easy to plan your real estate future with Mortgage House.
What is the best Australian second home loan for my family?
As a second home buyer, you will probably already have a working knowledge of home loans in Australia. However, when new loan products are introduced, taking advantage of a good offer makes sense. As mortgage experts with access to a range of in-house low interest rate loan products, we can offer you loans that will jump-start your plan and put you in charge of decision making. Variable and fixed rates are only the beginning. At Mortgage House we also offer:
Split mortgage loans: A split mortgage loan allows you to divide your home loan into two segments; one part with a fixed interest rate and the other with a variable interest rate. Advantages include the opportunity to pay off a portion of your mortgage sooner, change split percentages for free and access features such as a line of credit.
Toggle offset mortgage loans: Similar to a split mortgage loan in many ways, a toggle offset mortgage loan is a system where half your loan is fixed and the other half is variable. Offset accounts are linked to both fixed and variable loan portions, allowing you to toggle between the two accounts to maximise interest savings. Additional repayments can be made on both portions of the loan without attracting additional charges.
Portable loans: Most people take out a mortgage for between 20 and 30 years, with a high likelihood of moving house at some stage. Mortgage portability is the solution, allowing you to take the mortgage with you when you move. By having a portable loan, you eliminate mortgage exit fees and stamp duty, saving thousands of dollars. Also, your bank details remain the same and bill payment schedules aren’t interrupted for seamless loan convenience.
Interest-only mortgage loans: This can be a great way to make an initial housing investment without breaking the bank. Interest-only mortgage loan periods can last for 10 years or more, with additional cash flow allowing you to improve or renovate your investment in the meantime. As a second home buyer, your eye for a good investment can reap the rewards with an interest-only mortgage loan.
Low deposit and low doc options: Mortgage House takes second home buyer plans seriously, including customers with a low deposit and those with minimal documentation. A low deposit loan will help you purchase a home sooner and start creating equity, although higher interest rates and mortgage insurance may be required. Low doc home loans are ideal for self-employed people, small business owners and contractors who can’t access complete financial documentation or statements.
Mortgage House financial experts understand all the above scenarios and more, and we are ready to talk to you about your plan to become a second home buyer or investor in Australia. We get to know your aspirations and help you achieve your goals. Mortgage House can deliver other loan arrangements based on a solid financial guarantee from your family, and even assist people with a bad credit score by offering a range of home loan pathways. All loans come with conditions that protect you and your lender, so check out our range of products designed to give everyone a fair chance in the Australian housing market.
How do I know if my current home suits my needs?
Are you satisfied with your present home or do you desire a change? Opting to become a second home buyer has several incentives, including the potential to increase wealth. It’s no secret that Australians often move, sometimes with highly profitable results, so utilising the capital raised in your current home to purchase something better is a sound financial strategy.
There is a lot to consider and a lot to do when moving, but with Mortgage House on your side, it can be ‘out of the old and into the new’ faster than you think. Our second loan process allows you to take one safe step at a time during the transition, without risking finances, making your second home buyer purchasing decisions a whole lot easier.
Another Mortgage House option is a renovation loan that can turn your present dwelling into your dream home. Our loan solutions are as diverse as the people of Australia and we are proud to offer flexible loan options for every type of family. As a highly regarded, award-winning home loan provider, Mortgage House is with you every step of the way.
When is the right time to think about buying a second home?
For astute homeowners and investors, it’s always the right time to think about buying a second home. The thinking phase involves doing the due diligence and real estate research and allowing yourself to envision a future of wealth creation through property. Deciding to act is another matter altogether. Becoming a second home buyer is a big step and you are not alone if you feel apprehensive about making the change. Home is where the heart is, and attachment to familiar surroundings is natural, but when rooms become too small, bathrooms too few and a layout that doesn’t suit your growing family, it’s probably time to consider buying a second home.
The opposite is also true. When children have left home, and the home no longer holds the same charm, it’s time to make choices. Household maintenance can become a burden, and cosier dwellings in a different area may become desirable, so you’ll consider downsizing. The point is, our Australian borrowers are always at different turning points when they decide to become a second home buyer, and we have the experience to provide customised advice. Being a second home buyer doesn’t mean you need to expand, and a townhouse, unit or smaller house purchase can be an astute investment that also frees up money for leisure, pleasure, vacations and family.
Mortgage House focuses on second home buyer mortgages with competitive rates and relevant loan features to suit you. We are proud of our level of customer service and are committed to helping you make the best choices. With Mortgage House, you have our industry-leading reputation on your side, and the ability to find the best loan available at any time. At Mortgage House, we still believe in a fair deal, and that’s why we have become the favourite lender for a whole new generation of Australians. Learn more helpful tips with our mortgage tips checklist.
Understand how much you can borrow
Important Disclaimer: This is intended as a guide only. Details of terms and conditions, interest rates, fees and charges are available upon application. Mortgage House's prevailing credit criteria apply. We recommend you seek independent legal and financial advice before proceeding with any loan. The Comparison Rate for each of the home loan products contained in this page is based on a loan of $150,000 over a 25 year term. Fees and charges may be payable.
WARNING: The comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. * This mortgage calculator shows indicative repayments based on 12/26/52 equal repayments for monthly/fortnightly/weekly options.