{"id":306963,"date":"2023-11-19T13:46:11","date_gmt":"2023-11-19T12:46:11","guid":{"rendered":"https:\/\/lagencerie.apercu.ovh\/blog\/renting-out-your-apartment-and-taking-out-a-second-loan-the-5-key-steps\/"},"modified":"2023-11-19T13:46:11","modified_gmt":"2023-11-19T12:46:11","slug":"renting-out-your-apartment-and-taking-out-a-second-loan-the-5-key-steps","status":"publish","type":"post","link":"https:\/\/www.lagencerie.fr\/en\/blog\/renting-out-your-apartment-and-taking-out-a-second-loan-the-5-key-steps\/","title":{"rendered":"Renting Out Your Apartment and Taking Out a Second Loan: The 5 Key Steps"},"content":{"rendered":"

Are you looking to rent out your apartment to secure a loan for a second real estate purchase? Here are the key steps to making your project a quick and hassle-free success. L’Agencerie, your real estate agency in <\/span> Albi<\/span><\/a>,<\/span> Anglet<\/span><\/a>,<\/span> Bayonne<\/span><\/a>,<\/span> Bordeaux<\/span><\/a> and<\/span> Hossegor<\/span><\/a> also explains in which situations this project is beneficial for you. <\/span> <\/p>\n

Renting Out a Property and Taking Out a Second Mortgage: Is It Feasible? <\/b><\/h2>\n

Yes, it’s entirely possible to get another loan to purchase your second property by renting out the first one. In fact, this is a common practice among homeowners. <\/span><\/p>\n

However, there are certain factors you<\/strong> should consider before moving forward<\/strong>. These primarily concern your borrowing capacity<\/strong>, which refers to the maximum amount you can borrow to purchase your new home. To calculate this easily, you can use a<\/span> free online mortgage calculator<\/span><\/a>. The calculation takes your income and expenses into account. <\/span> <\/p>\n

In the simulator, you\u2019ll need to enter the amount you want to borrow for your mortgage. This amount shouldn\u2019t be limited to just the purchase price of your second property. You should also include, for example, real estate agent fees and notary fees<\/strong>. Check out our<\/span> guide to all the costs to expect when buying a home<\/span><\/a> to learn about them all. <\/span> <\/p>\n

Your debt-to-income ratio<\/strong> is also one of the factors to consider when determining whether you qualify for a new loan. Generally, banks accept a debt-to-income ratio of less than 33%. <\/span><\/p>\n

Here’s how it’s calculated: <\/span><\/p>\n

Debt-to-Income Ratio = ((monthly payments + fixed expenses \/ (net pay + other income)) \u00d7 100)<\/b><\/p>\n

Step 1: Preparing Your Primary Residence to Rent It Out Easily <\/b><\/h2>\n

Before renting out a property, it is important to be familiar with the applicable rules, particularly those regarding rental apartments. These apartments must meet the standards of decency already established by law. More specifically, a<\/span> decent dwelling<\/span> must meet certain criteria, such as: <\/span> <\/p>\n