Are you looking for your dream home, or at least your main residence for the next few years? The first thing you’ll need to do is define your budget for this purchase.
What budget should you set for your new home?
Buying a home includes a whole range of costs:
- purchase price of your new home;
- notary fees;
- mortgage costs;
- bank application fees;
- credit protection insurance;
- moving costs.
Another expense you can’t forget about when buying a house that needs refreshing: the cost of renovations. To avoid any nasty surprises, get precise quotes from the relevant professionals. Set a slightly higher budget in order to leave yourself some room for manoeuvre.
Good to know
Don’t hesitate to ask your BGL BNP Paribas advisor for a provisional agreement to take with you to property viewings. This document certifies that the bank will finance your purchase(1).
This will give you an advantage over other hopeful home buyers in terms of getting the sales contract signed.
Is it better to rent or sell my current home?
You can decide what to do with your current property based on how much you need in order to buy your future home:
- Put it up for lease. This solution provides you with an additional source of monthly income. It can be allocated to the mortgage for your new home, or used to maintain your lifestyle. This approach also helps build your real estate equity and grow your capital over the long term.
- Sell it. This solution gets you the cash you need, fast. This way, any capital gains on the sale of your first home can be reinvested as a personal contribution to the purchase of your next home. It’s one way to reduce the debt burden from your new mortgage.
Do I have to sell my current property before buying a new one?
Selling your current home in order to finance your new one is a question of timing. “Do I need to have sold my current residence before I can start financing my next property? I’d be risking not having anywhere to live for a few weeks, or even months.”
To make life easier and avoid stress, take advantage of the BGL BNP Paribas bridge loan. A bridge loan(2) can be granted to finance your new home while you await the sale of your old one. It lets you transfer your current loan to your new property until your previous home is sold. This type of loan can also be used to pre-finance any assistance that hasn’t yet been disbursed, for example.
Did you know?
Are you on full-time or part-time parental leave, with a temporarily diminished income? Lighten the load of your loan!
During this period of your life, BGL BNP Paribas can help you reduce your monthly mortgage payments, by simply paying interest(2).
What are my financing options for buying a home?
- Traditional loan with a personalised repayment plan(2) : adapt your loan depending on the home you want to purchase, your financial position and your family situation. Interest rate type, loan term, non-amortised loan, etc. These solutions can bee combined in order to best meet your needs.
- Schwäbisch Hall home loan: combine your loan and home savings scheme to help you purchase your main residence, while taking advantage of tax benefits.
- Bridge loan: pre-finance the purchase of your new home thanks to this bridging loan.
(1) Within the document’s validity period and provided that your situation hasn't substantially changed.
(2) Offer subject to terms and conditions and approval of your application by the bank..
You can transfer the outstanding loan balance, mortgage and credit protection insurance to your new home.
This way, you avoid release fees and administrative fees for setting up a new mortgage guarantee on the total amount!
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