Do you have plans to renovate your kitchen or make your home more sustainable? There is a chance you can increase your mortgage to improve your home. In this way, you do not need to use your savings.
There are a few options on how you can increase your existing mortgage:
Transfer to a new mortgage lender.
Register a higher mortgage
Apply for a second mortgage.
Personal loan for renovation.
You can pay off your current mortgage and take out a higher new mortgage. In this case, you must go through the mortgage application again - pay all closing fees and
revisit a notary. If you have a fixed mortgage interest rate for x years, you must pay the penalty to your existing mortgage lender.
When you sign the mortgage deed at the notary's office, you have an option to register a higher mortgage sum at the civil notary when you first apply for a mortgage.
That could be the amount of your mortgage, but many mortgages are intentionally registered higher at the start.
In this case, you increase your mortgage without paying any fees and visiting a notary. Your mortgage lender usually reviews your income and the home's value.
If you have a higher mortgage registration and want to switch lenders, you must first obtain approval from your present bank.
If previously discussed options do not work for you, you can always take a second mortgage. If you have built equity in your home, you can take out a second mortgage on top of your existing mortgage with the mortgage lender. Yet, you must visit the notary and pay closing fees.
If you have saved enough money, You can always use it to renovate your home.
You pay a higher interest rate for a personal loan than a mortgage, yet you do not need to pay any extras such as closing fees.
The disadvantage of a personal loan has higher fees and a shorter repayment period, while your mortgage payments are lower and spread over 30 years.
Mortgage broker fees
1. Your mortgage lender gives you additional funds to improve your home.
2. Your repayment increases every month.
3. Your house market value tends to increase.
Some banks, such as ABN AMRO, offer a sustainable mortgage to improve your home. You can get good conditions and a desirable interest offer if you plan to enhance your home sustainably. If you increase your mortgage to make your home more sustainable, you can borrow up to 106% of the market value of your home. To make your home more sustainable, you can borrow a minimum of €5,000 and a maximum of €25,000.