pr-building-house
Interest-Only Mortgage

Interest-Only Mortgage

Only pay the interest each month

  • Repay the mortgage at the end of the term
  • Fixed monthly payment
  • Only pay the interest on your mortgage

Repay the mortgage at the end of the term

With our Interest-Only Mortgage, you pay only mortgage interest each month. Until the end of the term, your monthly payments will not go towards paying off the mortgage loan, unless you decide to make repayments yourself. Your mortgage debt will therefore not change, and neither will the mortgage interest you pay, provided the rate of interest stays the same. At the end of the term, you must repay the mortgage in full.

Repaying an Interest-Only Mortgage and your tax break

Repay your mortgage at the end of the term

With an Interest-Only Mortgage, you are responsible for raising the money needed to repay your mortgage in full on the maturity date. You can do this by saving up or investing during the mortgage term, or by selling your home. Find out more about repaying your Interest-Only Mortgage, check the current status of your mortgage on Internet Banking, or go over your options with a mortgage adviser.

Decreasing tax break

On certain conditions, you can deduct the mortgage interest you pay from your taxable income. On 1 January 2013, new rules governing the mortgage interest deduction came into force, which may change the scope of this tax break for you.

Mortgage and taxes
Tip

Repayment difficulties

If you find yourself unable to repay your Interest-Only Mortgage at the end of the term, you may have to sell your home to pay off your mortgage. However, the proceeds from the sale of your home may not cover the mortgage in full, leaving you with a mortgage shortfall.

Check your Interest-Only Mortgage

Can you afford your Interest-Only Mortgage, both today and in the future? Do the easy mortgage check now and get clarity on your current and future monthly costs. In the ‘My Mortgage’ section on Internet Banking, select ‘Mortgage Check’ and you will instantly see whether you need to take action to continue to be able to afford your mortgage.

More information and Interest-Only Mortgage terms & conditions

Key features of our Interest-Only Mortgage
  • You pay only mortgage interest each month.
  • If your mortgage interest stays the same, your monthly payment will stay the same.
  • If you don’t make any interim repayments, you will be required to pay the mortgage back in one single lump-sum payment at the end of the term.
Terms and conditions

The terms and conditions for your mortgage are very important. Always make sure you read the terms and conditions before you sign a mortgage offer.

How much can I borrow?

You can borrow up to a maximum of 50% of a property’s market value on an interest-only basis. The amount you can borrow in total depends on your income and your financial commitments, as well as on the value of your home. From 2018, this is up to 100% of the market value of your home.

Mortgage interest deduction

On 1 January 2013, new rules came into effect for the tax break that allows you to deduct mortgage interest from your taxable income. These new rules may affect the scope of this tax break for you.

If you took out the Interest-Only Mortgage before 1 January 2013, you can deduct the interest you pay on your mortgage from your taxable income, provided you meet certain conditions. The Interest-Only Mortgage will then continue to offer you a tax break.

However, if you took out the Interest-Only Mortgage after 1 January 2013 or are currently considering taking out an Interest-Only Mortgage, you will not be able to deduct the mortgage interest from your taxable income.

Additional repayments
If you want to repay all or part of your Interest-Only Mortgage before the maturity date, read all about repayment.
Fees
  • If you opt to get personal mortgage advice first, you will be charged a one-off advice fee. If, after getting the advice, you decide to take out a mortgage with us, you will also be charged a handling fee. Check the rates.
  • If you choose to apply for a mortgage without getting personal advice, you will pay the handling fee once only.
  • If you also take out a term life insurance policy, you will not be charged an additional advice fee. For each new term life insurance policy, you will be charged a € 175 handling fee.
Mortgage interest
With the Interest-Only Mortgage, you have a choice between a fixed and a variable interest rate. Check the current mortgage interest rates.
Applying

The law defines the Interest-Only Mortgage as a complex product, meaning that you have to be well informed before deciding to take one out. Whether you want to do so with or without advice is up to you.

Dutch National Mortgage Guarantee (NHG)

If the price of the property you are buying does not exceed € 290,000, you can apply for the Dutch National Mortgage Guarantee. In that case, the interest-only part of your loan cannot exceed 50% of the value of the property.

Dutch Credit Registration Office (BKR)

Given that a mortgage is a loan, we will check your application with the Dutch Credit Registration Office (BKR) to ensure responsible borrowing.

Important reading

More information and Interest-Only Mortgage terms & conditions

  • You pay only mortgage interest each month.
  • If your mortgage interest stays the same, your monthly payment will stay the same.
  • If you don’t make any interim repayments, you will be required to pay the mortgage back in one single lump-sum payment at the end of the term.

The terms and conditions for your mortgage are very important. Always make sure you read the terms and conditions before you sign a mortgage offer.

You can borrow up to a maximum of 50% of a property’s market value on an interest-only basis. The amount you can borrow in total depends on your income and your financial commitments, as well as on the value of your home. From 2018, this is up to 100% of the market value of your home.

On 1 January 2013, new rules came into effect for the tax break that allows you to deduct mortgage interest from your taxable income. These new rules may affect the scope of this tax break for you.

If you took out the Interest-Only Mortgage before 1 January 2013, you can deduct the interest you pay on your mortgage from your taxable income, provided you meet certain conditions. The Interest-Only Mortgage will then continue to offer you a tax break.

However, if you took out the Interest-Only Mortgage after 1 January 2013 or are currently considering taking out an Interest-Only Mortgage, you will not be able to deduct the mortgage interest from your taxable income.

If you want to repay all or part of your Interest-Only Mortgage before the maturity date, read all about repayment.
  • If you opt to get personal mortgage advice first, you will be charged a one-off advice fee. If, after getting the advice, you decide to take out a mortgage with us, you will also be charged a handling fee. Check the rates.
  • If you choose to apply for a mortgage without getting personal advice, you will pay the handling fee once only.
  • If you also take out a term life insurance policy, you will not be charged an additional advice fee. For each new term life insurance policy, you will be charged a € 175 handling fee.
With the Interest-Only Mortgage, you have a choice between a fixed and a variable interest rate. Check the current mortgage interest rates.

The law defines the Interest-Only Mortgage as a complex product, meaning that you have to be well informed before deciding to take one out. Whether you want to do so with or without advice is up to you.

If the price of the property you are buying does not exceed € 290,000, you can apply for the Dutch National Mortgage Guarantee. In that case, the interest-only part of your loan cannot exceed 50% of the value of the property.

Given that a mortgage is a loan, we will check your application with the Dutch Credit Registration Office (BKR) to ensure responsible borrowing.

Reasons for taking out a mortgage from ABN AMRO

Schedule your appointment

Schedule your appointment online: same-day service, if available.

Video conferencing with an adviser

Where and whenever you like. Use your computer, smartphone or laptop.

Making changes to your mortgage yourself

Your options range from changing your interest rate to making additional repayments. Just use the ABN AMRO online self-service.