The interest-only mortgage loan is no longer …. It is a sad end of what was once such a popular mortgage loan. Or actually is. After all, according to figures from De Nederlandsche Bank (DNB), more than half of the Dutch households still use a mortgage loan interest-free mortgage loan (10%), or a variant such as a savings or investment mortgage loan (40%). Such mortgage loans can cause many problems in the future.
Question & answer interest-only mortgage loan
Do you have an interest-only mortgage loan and would you like to convert it into an annuity mortgage loan or linear mortgage loan? Do you want to know what the obligatory repayment and the risks of this mortgage loan are for you as a home owner? Or are you looking for information about the mortgage loan interest deduction rules? On this page we give you detailed information about the interest-only mortgage loan and all kinds of topics are reviewed.
Interest-free mortgage loan: in the future still affordable?
No less than 10% of households in the Netherlands, plus minus 1 million, have taken out a repayment-free mortgage loan. This type of mortgage loan can no longer be applied for since January 2013 by households that buy a house for the first time in their lives. Under strict restrictions, this mortgage loan loan can still be extended. Although it is questionable whether an extension of this mortgage loan gives you benefits.
Repay interest-only mortgage loan? Start with it as soon as possible!
Experts advise everyone to already start redeeming and not delay the problem. Because the interest-only mortgage loan must also be repaid in one go after the term. Most people have opted for this term for 30 years.
As we have already written: This repayment-free residential loan can extend you, but having your mortgage loan in its current form is often not possible. The loan standards have also been tightened considerably, with the result that you may be able to borrow less.
Interest rate or opt for low interest rates?
All right. Experts advise you to start paying off your interest-only mortgage loan as quickly as possible. And who are we to contradict that. But can you also face the problems in other ways? A good option is to convert your mortgage loan to a lower interest rate.
You can also opt for interest rate averaging. Both ways provide you with a monthly benefit anyway. Use that saving to pay off the debt every month. You can go to your current bank for interest rate averaging. Redeem interest-only mortgage loan to an annuity mortgage loan or linear mortgage loan at a favorable mortgage loan interest rate? That is not possible with your current bank. You will have to apply for a new mortgage loan elsewhere.
Interest-only mortgage loan interest: Interest rate mediation
Interest rate mediation for your interest-only mortgage loan loan applications can generate money for households. However, the savings depend on each situation. In some situations, it costs the consumer extra money.
It is therefore highly advisable to ask an independent mortgage loan advisor for advice. In case of interest rate mediation, you as a home owner choose to open your interest-only mortgage loan. You do this while the duration has not yet expired. The fixed-rate period therefore continues.
Half less interest mortgage loan pay
Some banks halve interest rates when interest rate averaging and do not charge penalty interest. Only in that case is interest mediation worthwhile! With interest rate averaging, you as a consumer pay an average of the old and the new interest. Nevertheless, the transfer of your high-risk mortgage loan to a new mortgage loan type is probably a much larger saving!
Switch off interest-only mortgage loan loan to annuity or linear mortgage loan
From 1 January 2013, the mortgage loan rules for everyone have changed drastically. Every new mortgage loan must now be repaid in 30 years. Did you take out a interest-only mortgage loan for 2013? Then you can keep it under reservation. You may have the mortgage loan transferred to a new interest-only mortgage loan at a lower interest rate under the same conditions.
Pay off mortgage loan debt
You can repay part of the mortgage loan debt on a monthly basis with the savings that this brings. However, there are few banks that offer a 100% interest-only loan. Often you can accommodate up to 50% of the interest-free part with them. The remaining 50% then consists of a new mortgage loan. That is why it is best to try to convert your current mortgage loan into an annuity mortgage loan or a linear mortgage loan at the lowest mortgage loan interest rate.
National mortgage loan Guarantee (NHG)
If you would like to opt for an interest-only mortgage loan with NHG , then this is possible, but you should bear in mind that only fifty percent of the current house value may consist of a redemption-free component. You have to top up the remainder with an annuity mortgage loan or a linear mortgage loan. Note: Borrowing a higher mortgage loan amount free from redemption than you now have, that is not possible.
mortgage loan interest deduct from the tax?
Since 2001 it has been possible to deduct the interest on mortgage loans from the tax for a maximum of 30 years. This means that from the year 2031 the first homeowners will have to deal with rising housing costs.
In addition, the maximum mortgage loan interest relief deducts annually in increments. The mortgage loan interest in interest-only mortgage loans is now no longer deductible from the tax. However, if the mortgage loan was taken out before 2013 for the purchase of your home.