4 Ways To Finance Your Second Home
You can apply for a home loan for your second home, too. However, banks are much stricter in such cases and do a proper study of your financial standing. On the other hand, banks would prefer giving you a loan if the market value of your first property is higher than the second one. In case the bank is still not convinced, you could also take the second home loan backed your investments standing. This would include shares, jewellery, mutual funds and insurance.
If you don't plan to take a separate home loan and want to add to the existing EMIs you are paying for your first mortgage, opt for a top-up loan. Applying for a top-up loan would also save you the trouble of getting into the new loan-taking process. To know more about top-up loans, read here.
Loan against property
When buying a second home, you could use your first home as an asset against which you could take a home loan. Known as a loan against property, this loan given against the current market value of your property. To know more about loan against property, read here.
Rent the first property
If you have bought a second home because it suits you better to live here, you could rent out your first property. This would help you in paying the EMIs for your second home.