The particular mortgage transfer is often beneficial. Many homeowners want to maintain their interest-only mortgage. After that pay attention to which bank you select.
Redeem required for new mortgages
For out a mortgage now, you need to repay this at least annuity in 30 years. Only after that can you deduct the home loan interest tax. This has not at all times been the case. Until one January 2013, the interest-only mortgage was the most selected form of mortgage. Because of the reduced monthly costs, but also the perfect tax benefit.
Exception for switching current mortgage
Several homeowners want to keep their particular interest-only mortgage. For them very has been made to repayment responsibility. In the transitional law, it really is stipulated that with a home loan from before 2013 you are able to again opt for a zero-level plan if you are going to transfer or even move. With the mortgage attention tax deduction!
Snag in the grass whenever cleaning free
With this transitional law, nevertheless , there is a catch. Banks should adhere to the Mortgage Funding Code of Conduct (GHF). This guideline states that the maximum of 50% of the house worth may be financed without payoff, unless:
- you transfer the existing home loan and stay in the house (pure transfer)
- your own monthly pay is significantly lower (up to 60%) than what you can lend with your income.
- build up your assets having a savings or investment accounts pledged to the mortgage.
100% interest-only mortgage remains possible
Because banks count on the marketplace value of the home, it continues to be possible to take out a fully interest-only mortgage. Your home loan can be lower than the house worth. The following calculation example causes this clear:
Arranged the value of your home is 250, 1000 euros and you have a mortgage associated with 200, 000 euros. If so, 80% of the home value (= 200, 000 euros) implies that you can transfer 100% from the mortgage without any relief.