Financing residual mortgage debt

Important change with regard to tax deductibility of residual debt financing as of 1-1-2018.
You can continue to finance your residual debt with the low interest rates of a personal loan or revolving credit, but the interest costs are NO longer tax deductible as was the case until December 31, 2017. This is a government decision.

You have no certainty about what the selling price of your house will be. Selling your house for a profit means that you can more easily buy a (more expensive) new home or have extra money left. In any case, you hope that the sale price is equal to the mortgage amount so that you do not make a loss. The reality may be that the home is being sold below the price of the purchase amount. There is then a residual debt . You can finance this loss with a loan and that can easily be done online without time-consuming agreements and at a low interest rate.

You can try to finance the amount of residual debt at your current bank, but the chance that this will succeed is small. In that case, taking out a consumer credit is a suitable solution.

If you have a mortgage that falls under the NHG (National Mortgage Guarantee) and you cannot pay the amount of residual debt (you cannot co-finance it with a new mortgage and you cannot take out a loan), you may be eligible for canceling the residual debt.

How much is your residual debt?

You have little influence on the level of your residual debt. It depends on the selling price of your home. However, in the years prior to the time of sale, you can ensure that the mortgage debt is as low as possible so that you reduce the chance of any residual debt. You can reduce the mortgage amount by making additional interim repayments. These extra mortgage repayments are not always free of charge. The bank can charge penalty interest.

Calculate the amount of residual debt

The selling price of your home minus the selling costs of the home minus the outstanding balance of the home's mortgage. The amount remaining under this line is your residual debt.

Pay your residual debt: through a mortgage or borrow money

You can co- finance the residual debt with your new mortgage or via a consumer credit . This is not always possible; your income must be high enough and you must be able to pay the new monthly payments, which become higher due to the extra amount of residual debt on top of the mortgage amount. The interest costs of the co-financed amount are not tax deductible. The term of a mortgage is longer than that of a loan: you pay off the amount of residual debt through a mortgage for longer than through borrowing money. You take out a loan online with us at no extra cost to pay the outstanding amount .

The interest rates on consumer credit, the personal loan and the revolving credit are low. If you take out a loan now, you will benefit from this in the form of low monthly costs. The personal loan with a term of 10 years is the most requested loan form to finance the residual debt. The interest and financing costs are not tax deductible.

Financing with a loan

You can choose from two types of loan to finance your residual debt: a personal loan and a revolving credit. If you have a large residual debt, you can opt for our combination credit . We work exclusively with reliable partner banks and offer you low interest rates. You take out the loan of your choice online.

Personal loan

The most popular loan for the payment of a residual debt is a personal loan. The interest and term are fixed, so you have certainty.

• Borrow the amount for your residual debt once
• You pay a fixed monthly amount in interest and repayment
• You know on what date the loan was fully repaid

Revolving credit

You can also arrange the residual debt financing with a revolving credit. This loan form provides a lot of flexibility because you determine when you withdraw what amount. The interest rate is not fixed; this fluctuates with the current interest rates.

• The term is not fixed; you always have extra money on hand
• You may withdraw repaid amounts again
• You can withdraw money freely up to the credit limit

Combination credit

You can finance a high amount of residual debt with our combination credit. This combination credit is a combined loan: a part revolving credit and a part personal loan. You then have the security of a personal loan with a fixed interest but the flexibility of a revolving credit with always extra money on hand.

But the combination credit can also consist of a personal loan that is spread over. Thanks to the risk spreading of the loan, the high loan amount between € 50,000- € 150,000 is possible, the interest rate is low and the conditions favorable.

• High loan amount up to € 150,000 possible
• Low interest
• Favorable conditions thanks to risk spreading
• The security of a personal loan
• Or the flexibility of a revolving credit

Loan Guide

We have developed a loan guide so that you can discover for yourself which loan is suitable for you . Of course you can also request a quote for a loan from us without obligation to finance your residual debt. You borrow money from us online so that your residual debt can be paid. You do not pay any closing and advice costs with us for this .