Do you dream of renovating your home? Are you planning to move? Or do you want to top up your pension? Equity on your home could help to make these dreams come true. Read how you can use it, or make an appointment with one of our mortgage advisers to get some advice.
If you sell your house and use the proceeds to pay off your remaining mortgage, you will be left with the equity. If you don’t buy another house, you can spend this money however you like. If you do buy another house, however, there are tax regulations regarding how you must use the equity. This is known as the additional loan scheme (‘bijleenregeling’), and it states that you must invest your equity in your new house. If you don’t use the equity for your new house but take out a loan instead, you will not be allowed to claim tax relief for the interest on that loan.
Are you planning renovations or sustainable home improvements? Do you want to install your dream kitchen, and perhaps even go ‘gas-free’? Or are you considering solar panels or a heat pump? You might be able to use your equity to pay for these home improvements, by increasing your mortgage or taking out a second mortgage. You can claim tax relief on the costs of the mortgage deed, valuation fees and mortgage advice fees once on your income tax return.
If your equity is high enough, your mortgage interest may be classified in a different rate category. If so, your mortgage interest rate will be lowered. Read more about this or ask one of our mortgage advisers to look into it for you.
Renovate your house and stay independent for longer.
Use the Energy Saving Check to find out how much you could save.
Make sure you get the individual care and support you need.
