If you have taken out a mortgage for financing your home in the past, we advise you to contact us regularly. This allows us to assess whether certain adjustments to your financial situation are desirable. Below we give you six situations that we regularly encounter during our mortgage checks.
1. Many people have opted for a so-called interest-only mortgage in the past
Contrary to what the name suggests, the mortgage debt must be repaid at some point. You may be saving for this through a life insurance policy or you plan to repay this with the proceeds from the sale of your house. Does the sale of your house not yield enough? Then you will be left with a residual debt! It is therefore important that you understand when the repayment must take place and whether you have sufficient financial resources at that time.
2. You may deduct the interest on the mortgage loan from your taxable income for a maximum of 30 years
This restriction was introduced in 2001. This means that in 2031 the first group of consumers will be confronted with the fact that the mortgage interest can no longer be deducted from their taxable income. Their net housing costs can therefore rise sharply. It is wise to know in time whether, and if so, when, this will apply to your situation.
3. As the owner of a home, you will be faced with a rental value lump sum
This is a notional amount that you have to add to your income and on which you therefore have to pay tax. This is not necessary if you do not state a mortgage interest. If you currently only have a limited mortgage debt, it can be attractive to continue paying off the mortgage. We can of course calculate what is advantageous for you.
4. The interest you pay on your mortgage is composed of various parts
One of those components can be the risk surcharge . That is a fee that the lender charges for mortgages with a certain risk. In general, the higher the loan amount compared to the value of the home, the higher the interest surcharge. However, have you repaid a substantial part of your debt over time or has the value of the home risen sharply? Then it is possible that this risk surcharge is no longer justified. You can then request the lender to cancel this surcharge. There is a different policy for each lender. For example, there is a bank that, when determining the risk premium, also looks at the assets that the homeowner has in an asset account.
5. The mortgage interest deduction is made at the maximum income tax rate that applies to you
Since 2013, however, there has been an annual decrease of 0.5%. In 2017, the maximum rate at which mortgage interest may be deducted is 50%. In 2041 this has fallen to 38%. In fact, this means that the net housing costs can also rise. It is wise that you are aware of this development in the future and can take it into account.
6. Finally, the interest rate
The interest is now low. If you now pay a higher interest rate, it may be attractive to take out your existing mortgage. But it may also be wise to consider fixing the fixed-rate period for a longer period.
These are some examples of why it is wise to regularly discuss your mortgage situation with us. When you contact us, you will quickly know whether savings are possible and what your mortgage situation will look like in the coming years.