Can I take my mortgage with me to a new house?

You’re ready for the next step! A different house with more rooms and a nice big garden (instead of a balcony), with enough space for things like an extra children’s room, a walk-in closet, or the man cave that’s been on your wishlist for years.

But what about your mortgage? You took out this mortgage originally because of its favorable terms and would like to transfer it.

We have researched whether and when this is possible for you and summarized it below.

Which mortgage types can I take with me?

Usually, the main reason for moving is to live in a larger space. It’s likely that you’ll need to borrow more for your new home than your current loan amount.

In that case, you can simply take out an additional loan with the same lender if you want to carry over your interest rate. Another lender will typically not finance this part. Would you like an indication of the maximum amount you can currently borrow?

Often, you can take your existing mortgage type with you to a new loan.

To be able to deduct your mortgage interest, since 2013 you can choose between an annuity or a linear loan. No other options are available.

If you had a mortgage before 2013 and want to transfer your interest-only mortgage… In that case, it’s also possible, depending on the amount of the interest-only portion.

Do I always keep the same interest rate with the relocation arrangement?

The mortgage interest rate depends, among other factors, on the ratio between the value of the property and the mortgage amount you borrow.

When you move to a new home, this ratio is reassessed. This could have consequences for the new average mortgage interest rate.

Especially if you currently have a mortgage with the National Mortgage Guarantee (NHG), this could have consequences. For a mortgage with NHG, you often pay the lowest interest rate. Are you buying a house with a purchase price above €355,000? In that case, the NHG expires, along with your advantage of the (extra) low interest rate.

Please note! Often, you are allowed to transfer your interest rate contract for up to the amount of your old loan. But it’s possible that you’ll pay slightly more or less. This depends on the risk associated with the loan.

When is it not possible to transfer your mortgage?

If your remaining fixed interest period is less than 10 years? In that case, the lender calculates with a stress test interest rate of 5%. Because the stress test rate of 5% might be higher than your current rate, it’s possible that the calculation shows you may no longer afford the mortgage amount.

Your mortgage lender must then reject your application, resulting in you having to apply for an entirely new mortgage at the current interest rate. An option to address this is to engage in interest rate averaging before your move. The experienced advisors at Nobel Mortgages can certainly assist you with this and determine if it’s beneficial for you.

There is a possibility that your own home has not yet been sold.

If you want to buy another house and transfer your mortgage while your own house has not yet been sold, you may need to bridge (part of) the equity.

You also need to demonstrate that you have sufficient own funds to temporarily pay two mortgages. Additionally, you must be able to demonstrate that you can handle any remaining debt.

So, it’s more convenient if you sell your own house first. Because the double expenses are not feasible for everyone, especially when the duration of these double expenses is uncertain.

Have you sold your current home?

In that case, you can take advantage of the portability arrangement, which is often valid for a maximum of 3 to 6 months. This varies depending on the lender. So, you must take out a new mortgage within 3 to 6 months; otherwise, you lose the right to transfer the interest rate.

And if you choose not to transfer the current mortgage to the next property? Then it is sometimes still possible to pass on the mortgage with favorable terms to the buyer of your house. This is called the transfer arrangement.

How do I deal with the equity of a mortgage as a mover?

If you’re fortunate enough that your house has increased in value, resulting in equity in your current home? Then you can make use of the ‘bijleenregeling’ (reinvestment relief). It means that you have to reinvest the equity if you buy your next home within 3 years. If you don’t use the equity for the purchase of your new home? Then you are not entitled to mortgage interest deduction on the amount equivalent to the equity.

If your old home has not been sold yet or the transfer has not taken place, but you still want to use the equity? Then you can temporarily borrow more (if possible based on your income), or use a bridging loan. If your current home is worth less than the current mortgage debt, you will face a residual debt when selling. You can finance this, if possible, with an additional loan or you have to pay it with your own funds.

Mortgage advice tailored to your needs.

A good mortgage advisor is essential to get a tailored and suitable answer. Nobel Mortgages can really help you make the right choices when selecting your next mortgage. Do you want to know what specifically is the smartest and most cost-effective option for you? We’ll find out for you!

Do you also want an advisor who looks outside the box and really analyzes all the possibilities for you? Then contact our experienced and enthusiastic team soon. We are available to you 24 hours a day with the utmost commitment and sincere attention. An email can easily be sent to info@nobelhypotheken.nl or call or text at 06-54770122.