Has your home increased in value beyond your mortgage? Then you have equity. You can use that equity by taking out an additional mortgage, freeing up funds without selling your home.
Many people use this for a renovation, sustainability improvements, paying off other loans, or taking a new step in life. With good advice, you know exactly what is possible and sensible.
Equity is the difference between:
Example:
If your home is worth €400,000 and you still have a mortgage of €250,000 outstanding, then you have €150,000 in equity.
This equity is tied up in your home, but you can release (part of) it by taking out an additional mortgage.
Equity usually grows in two ways:
Each month you repay part of your mortgage. As a result, your debt decreases and your equity grows.
Due to price increases in the housing market or improvements to your home, the value can rise. This increases your equity.
Equity provides financial flexibility. Common reasons include:
Together, we look at whether this fits your situation and future plans.
There are several options. Which one suits you best depends on your situation.
You increase your existing mortgage. This can often be done at a relatively low interest rate.
You take out a new mortgage to replace your current one and borrow additional funds. This can be attractive if interest rates are favourable.
In a personal consultation, we review your home, mortgage, risks, and wishes. Afterwards, you know exactly where you stand.
