Are you looking to renovate your home or make it more sustainable? Or, are you planning on incurring a major expense at some point? If you don’t have enough savings, then borrowing additional money is an option. This can be done by increasing your mortgage. Discover how it works and what we can do for you.

Reasons to increase your mortgage

There are many different reasons why people increase their mortgage. For example, you can use the money you free up for:

  • renovation work or making your home more sustainable
  • buying out your ex-partner if you separate
  • the purchase of a holiday home, an apartment for studying children, a home abroad or an investment property
  • starting your own business or purchasing shares in a company
  • a (temporary) supplement to your pension
  • the purchase of a car or other consumer item

What you need to know about increasing your mortgage

  • Will you be using the amount of the increase for a renovation? If so, you can borrow up to 100% of the value of your house after renovation.
  • If you are using your equity for something other than a renovation, you can often borrow up to 80% to 90% of the property’s value.
  • Will you be adding sustainable features to your home? In that case, you can increase your mortgage to up to 106% of the home value. Any extra borrowing capacity above 100% must be used entirely for sustainability purposes.
  • The interest rate for your mortgage is often lower than that of a personal loan
  • Take into account the processing costs, advice fees, as well as appraisal and notary fees.
  • The sole instances where mortgage interest deduction is applicable are if you are going to renovate, make the property more sustainable, or pay off the ground lease.

What increasing your mortgage means in concrete terms

If you increase your mortgage, you will receive extra money, for example for a renovation or improvement of your house, without needing any savings. That does mean however that your monthly mortgage payments will increase, and your mortgage will sometimes fall into a certain rate category, which will affect the interest rate.

Increased mortgage registration

When you took out your current mortgage, had you already taken renovation plans into account, and did you make use of a higher mortgage registration? If you did, then you can increase the current mortgage up to the amount of the mortgage registration without having to go to the notary. Have you not arranged for a higher mortgage registration yet? Then you will need to contact a notary again for drafting a new mortgage deed.

How increasing your mortgage works at Viisi

The amount with which you can increase the mortgage depends on your income, any outstanding debts, and the value and surplus value of your property. Our mortgage advisors will calculate the amount by which you can increase the mortgage. We will also provide an insight into your monthly payments, and of course, arrange the application for the new mortgage. Set up a no-obligation appointment below to see what we can do for you.

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