The choice for a mortgage loan has financial consequences for the next 30 years. The monthly costs depend on the amount you borrow, the interest rate and the type of mortgage loan. A mortgage loan advisor helps you to choose the right mortgage loan. With this information you are well prepared for the interview. An explanation over at hsalliance.org
For new mortgage loans you can only deduct the interest under certain conditions. You must repay the mortgage loan in 30 years according to at least an annuity scheme. The linear and annuity mortgage loan are therefore now the most attractive types of mortgage loan.
Annuity mortgage loan
- You pay a fixed monthly amount. This amount consists of interest and repayment.
- In the beginning of the term you pay a lot of interest and you do not pay much off. Later that is the other way round: you pay little interest and then pay off a lot.
- At the end of the term you have repaid the entire mortgage loan.
- If you use mortgage loan interest relief, the net costs are initially low. Later the monthly costs increase.
Linear mortgage loan
- You pay the same amount every month. For example 1 / 360th part with a duration of 30 years.
- You pay interest on the remaining debt.
- The monthly expenses are high at first, but decrease later.
- At the end of the term you have repaid the mortgage loan completely.
Older mortgage loan forms
If you bought a home before 1 January 2013 , it may be that you have taken out another type of mortgage loan. The interest was at the time also deductible for these mortgage loans. If you buy a new home and you already had such a mortgage loan, you can sometimes take part of it into your new mortgage loan. Discuss the possibilities with your mortgage loan advisor.
Savings mortgage loan
- You pay interest on a monthly basis.
- You do not solve anything.
- Instead of redeeming, you save the entire amount during the term to redeem the mortgage loan.
- At the end of the term you can certainly repay your mortgage loan.
- You save via a life insurance policy or a bank savings account . With a life insurance policy you pay part of the premium for a term life insurance policy. This is not the case with bank savings. You can choose to take out a separate term life insurance policy. The interest you receive is always equal to the mortgage loan interest. So you do not suffer from interest rate fluctuations.
Investment mortgage loan
- In addition to interest, you pay a monthly amount with which you invest.
- The proceeds at the end of the term are, according to plan, enough to repay your mortgage loan. However, this depends on the developments on the stock market.
- An investment mortgage loan can yield more, but you also have more uncertainty.
- You invest yourself or through a life insurance policy. You also often pay a premium for a term life insurance policy.
Interest-only mortgage loan
- You do not pay anything during the term. You only pay interest, which is deductible.
- This can only be done for part of the mortgage loan, or if there is enough surplus value.
- You take care of building up your own assets so that you can redeem at the end of the term.
Hybrid mortgage loan
This is a combination of mortgage loans: part of a savings mortgage loan, a part of the investment and a part of a redemption
€ 290,000 is on 1 January 2019 the maximum purchase price for a house with a mortgage loan with NHG.
Overvalue and residual debt
Sometimes there is a difference between the value of a home and the remaining mortgage loan debt. There is then an overvalue or a residual debt.
Suppose you have taken out a mortgage loan for 200,000 euros. Your home is now worth 250,000. Then there is surplus value. You can then increase your mortgage loan and get extra money.
This is called a second mortgage loan. You then have to pay more per month. Also, changing the mortgage loan costs a lot of money. The interest on the extra mortgage loan is only deductible if you use the money for the maintenance of your own (first) home. If you use the money for the purchase of a car or boat, the interest is not deductible. You must also repay the additional mortgage loan at least as an annuity to qualify for mortgage loan interest deduction.
The inverse of surplus value can also occur. Your mortgage loan is then higher than the value of the home. As long as you pay the monthly costs, that is no problem. As soon as you want or need to sell the property, you can remain with a residual debt. The proceeds from your home are not enough to pay off the mortgage loan. Read more about a residual debt on wijzeringeldzaken.nl. Or look at AFM.nl: ‘Problems with payment of your mortgage loan’ .
Tip: House sold? Any costs of cancellation of the mortgage loan can be stated in the tax return as deductible costs. When deleting the mortgage loan, the right of security is removed from the land register.