What can you do with excess value of your house?

Home prices continue to rise unabated. A large group of homeowners now have substantial excess value. There are several ways you can utilize your home's surplus value. Which ones?

After a quieter period, house prices are now rising to new records. The housing market continues to overheat. Therefore, people who have owned a home for a long time now often have a hefty surplus value. Surplus value is the difference between the current sale value of a home and the mortgage taken out for it.

But what do you get out of the excess value on your home? In any case, the money is released when you sell the home. Even if you don't plan to move, there are ways to use your surplus value.

You can use the money in different ways. For example, some people use it to remodel the home and make it more sustainable. While others use it for a nice trip. It is also possible to use the money to help your children financially, such as buying a home.

There are several ways to use your surplus value. We list the most important options for you.

Increase your mortgage

Do you have a substantial surplus value on your house? Then you can increase your mortgage. The maximum mortgage depends on the value of your home. In addition, your income must be sufficient, because the lender tests your income again.

Do you have a higher mortgage registration at the Land Registry? Then you do not have to go to the notary again.

A second mortgage

You can also choose to take out a second mortgage, provided it is financially feasible. You may choose a different mortgage type and term for the new mortgage than your existing mortgage. The second mortgage is taken out at the current mortgage rate.

Redemption-free mortgage

For example, some mortgage lenders for seniors assume the actual burden of a mortgage. This makes an installment-free mortgage interesting because then you only pay interest and no repayment. An installment-free mortgage is possible up to a maximum of fifty percent of the home value. Keep in mind, however, that for interest-only mortgages taken out after 2013, you can no longer make use of the mortgage interest deduction.

Personal advice

A mortgage is customized. It has to fit well with your personal situation and your wishes for the future. That is why it is important to get good advice about your mortgage and the possibilities for using your surplus value. Do you have any questions? Then feel free to contact us. We will be happy to help you.