Equity on your home
What is equity and how can you use it?
Do you dream of renovating your home? Are you planning to move? Or do you want to top up your pension? Equity on your home could help to make these dreams come true. Read how you can use it, or make an appointment with one of our mortgage advisers to get some advice.
What is equity?
You have equity if your home is worth more than the amount you owe on your mortgage. For instance, if your home is worth €250,000 and your outstanding mortgage amount is €200,000, your equity is €50,000. You will find your outstanding mortgage amount in the ABN AMRO app and on Internet Banking, under ‘Mortgage’. To find out the value of your home, you can check your municipality’s annual valuation report (WOZ-beschikking) or visit wozwaardeloket.nl. Alternatively, you can have your house valued for an even more accurate estimation of its worth.
Equity: what are your options?
Buy another home
If you sell your house with equity and buy another home, theadditional loan scheme (‘bijleenregeling’)applies. This means that you use the equity from your old house to buy your new home. If you don’t and borrow this amount instead, you cannot claim tax relief on the interest on that part of your loan.
Use your equity for home renovations
Are you planning renovations or sustainable home improvements? Do you want to install your dream kitchen, and perhaps even go ‘gas-free’? Or are you considering solar panels or a heat pump? You might be able to use your equity to pay for these home improvements, by increasing your mortgage or taking out a second mortgage. You can claim tax relief on the costs of the mortgage deed, valuation fees and mortgage advice fees once on your income tax return.
Reduce your mortgage interest rate
If your equity is high enough, your mortgage interest may be classified in a different rate category. If so, your mortgage interest rate will be lowered. Read more about this or ask one of our mortgage advisers to look into it for you.
The Home Equity Mortgage
If you’re aged 62 years or older and your house is worth more than your outstanding mortgage, you can take out a Home Equity Mortgage and there’s no need to move. That's good to know if you want to give some money to your children or grandchildren, renovate your home or top up your pension. If you and your partner want to take out a Home Equity Mortgage, you must both be aged 62 or older.
Ready for the future
Live in your home for longer
Renovate your house and stay independent for longer.
Increase your home’s energy efficiency
Use the Energy Saving Check to find out how much you could save.
Paying for care at home
Make sure you get the individual care and support you need.