Home Loan - Holiday Home


A Holiday home loan is used to finance the purchase of a property which is not the borrower’s principal place of residence. The borrower uses the property as a get-away and does not rent it out to others. The borrower/s and lender will negotiate the interest rate, the length of the loan and agree on a repayment schedule, which will generally be fortnightly or monthly, but can vary. Not all lenders will accept more than one borrower where there is only one owner.


Opportunity to buy a property with a small deposit, usually between 10 to 20% of the purchase price. If the amount borrowed is more than 80% of the value of the property, lenders may require Lenders’ Mortgage Insurance or additional security which essentially protects them in case of default. This will be an additional cost to the borrower.


The loan is secured against the value of property being purchased and any other property offered as a top-up. This means, if the borrower defaults in their repayments and cannot repay the amount owing the lender may compel them to sell the property to settle the debt in full and call on any personal guarantees provided to support the loan.

Repayment terms

The borrower will be required to pay interest at a fixed or variable rate or a mix of the two on the principal outstanding and any agreed upfront, ongoing and exit charges.


To be matched with a Holiday Home Loan bidder, just follow our anonymous Home Loans/Holiday Home listing process.