Moving to a new home
Have you already found your dream home in the Netherlands, but your current home hasn’t been sold yet? This offers great opportunities, but also brings financial questions along with it. How do you bridge the period between both homes without running into cash flow issues?
When you move on to a next home, there is more involved financially than with your first purchase
- ProviderRate %
-
ABN AMRO
3.45%
-
Rabobank
3.69%
-
ING
3.60%
-
ASN Bank
3.38%
-
Lloyds Bank
3.25%
Calculate your budget and the home equity.
The first step is knowing where you stand. How much is your current home worth and how much equity have you built up? We calculate your maximum budget for the new home, taking into account the sale proceeds of your current house.
Important note on calculations: Calculating the budget for your next home is different than it was for your first. A common pitfall is relying solely on standard online tools; these often fail to account for your existing mortgage, which is a crucial factor in an accurate calculation.
Choose your sales strategy: buy first or sell first?
If you buy a new house first, you have certainty about your new place but will face temporary double monthly costs. If you sell first, you know exactly how much you have to spend, but you might need temporary alternative housing. We help you weigh the risks and opportunities for each scenario.
Arrange the bridging mortgage.
Have you bought a new house, but the equity from your old house hasn’t been released yet? With a bridging mortgage, the bank advances the expected equity, so you can make the down payment for your new home even before the old home has been transferred.
At Mortgage Center, we can calculate the exact bridge loan amount tailored to your situation
Check the additional loan regulation (Bijleenregeling).
The Tax Authorities (Belastingdienst) expect you to invest the surplus value (equity) of your old home into your new house. If you do not do this (for example, because you spend the money on a car), the interest on that portion of your new mortgage will not be tax-deductible. We ensure that you stay within the fiscal lines. More information at www.belastingdienst.nl/bijleenregeling.
Take your current mortgage interest rate with you (Verhuisregeling)
Do you still have a very low interest rate on your current mortgage? At most banks, you can ‘take’ this favorable rate with you to your new home. This can save you hundreds of euros per month compared to current market interest rates.
Final mortgage application and double monthly costs.
As soon as the sale is finalized, we submit the final application. At this stage, the bank conducts an extra strict assessment to ensure you can temporarily cover the costs of both properties (often, you are required to have enough savings to cover 12 months of double housing costs).
The transfer at the notary.
On the day of the move, two transactions often take place: the sale of your old home and the purchase of the new one. The notary settles the bridging mortgage (overbruggingshypotheek) and ensures that the old loan is paid off and the new one is activated.
Frequently Asked Questions (FAQ)
Yes, most lenders have a portability scheme (verhuisregeling). This allows you to carry over the favorable interest rate and the remaining term of your current mortgage to your next home. Do you need a higher loan for your new home than your current debt? Then you will pay the current market interest rate at that time for the additional amount. We will check for you whether your bank offers this scheme and whether refinancing might be more beneficial after all.
If the sale proceeds turn out to be lower, there will be less money available to pay off the bridging mortgage (overbruggingshypotheek). You will then be left with a residual debt on the bridge loan. You must cover this shortfall using your own savings. For this reason, as a precaution, banks often only calculate with 90% of the appraised value to account for exactly this scenario.
Most lenders maintain a maximum term for a bridging mortgage of 12 to 24 months. If the property has not been sold after that period, the bank will enter into discussions with you. In extreme cases, the bank may demand that you repay the bridge loan in another way, or the interest rate may be increased. It is therefore essential to have a realistic sales strategy.