What is the difference between permanent private housing and secondary housing in credit?
When you go to hire a home loan, the conditions proposed by the bank will be different depending on the purpose you give to the property: permanent or secondary own. Understand the difference between the two and the financing conditions for each.
If you are looking for a home loan for your new home, it is with Poupança no Minuto! Credit intermediaries accompany you so that you can get the best market conditions. Contact us or read first what conditions they can offer you.
What is the difference between permanent own housing and secondary?
The difference between the purpose of a permanent own residence and a secondary residence is that the former is intended for the owner's residence and respective household, being their tax residence, and the latter is intended for occupation during occasional periods by the owner, such as a holiday 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 for accessing financing proposed by banks.
This is because a second home loan for the purchase of a house for occasional living, investment, or rental will have worse conditions than for a primary home with a first loan, due to the debt-to-income ratio.
Having an existing mortgage increases the debt-to-income ratio (DTI) and makes the conditions less favorable.
The biggest difference will be in the percentage of the loan that the bank is willing to provide, that is, the loan-to-value. The maximum that banks lend for a secondary housing property is up to 80%, while for primary permanent housing 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 appraisal value.
The remaining conditions will depend on the banking institution, but, as a rule, the interest rates do not differ from the first home loan. The financing term in the secondary credit may be limited to 30 years, regardless of the age of the holders, with the limit of 75 years old for the oldest holder at the end of the contract.
Taxes are also paid in a similar way to buying a permanent own home, 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 homes, with a distinct table. There is an exception that in a second home it is not possible to be exempt from Municipal Property Tax (IMI), still having to declare the capital gains from the secondary home in the IRS settlement.
Looking to take out a housing loan for any of the following purposes? The credit intermediaries at Poupança no Minuto can ensure you have access to the best financing conditions in both cases! Contact us for a free support service throughout the entire process, handling all the paperwork and communication with the entities.