Do you want to move or remodel?
Your home is never finished; there are always improvements to be made. It is wonderful to dream away at the idea of your ideal home. More space, for example, is a common wish. Would you like to see if you can make that dream come true this year by remodeling, for example? There are several options.
You can, of course, look for another house and move. The extreme craziness in the housing market has subsided, but prices are still as high as ever and supply is limited in many regions. This makes finding a suitable and affordable home difficult in many cases. Therefore, you might also consider remodeling
By remodeling, in many cases it is also possible to realize your living wishes. Think, for example, of installing an extension or a dormer. In addition, a renovation also allows you to make your house more sustainable, such as insulating the roof. The extra space, extra comfort and sustainability often also increase the value of the house.
The price tag
Of course, remodeling comes with a price tag. Material costs are high right now and there is a persistent shortage of tradesmen. So make sure you have a clear overview of the costs and your financial options. For example, will you use savings for the renovation or will you choose to increase your mortgage?
We list some financing options for remodeling:
"It can be smart to finance your remodeling with savings. In the savings account, it doesn't yield much return. If you improve your home with savings, the return will eventually be in the bricks. In addition, your monthly living expenses don't go up because of the remodel; after all, you don't need an extra mortgage."
You can also choose to take out a second mortgage for your remodel. The lender will see if you can bear the extra burden. Then you can go to the notary to have everything recorded.
Higher enrollment mortgage
Do you have a higher registration on your mortgage? Then you do not have to go to the notary again if you want to increase the mortgage for a renovation. The lender does check whether this new increase is possible for you.
"Is your mortgage rate higher than the current interest rate? Then you may be able to refinance your mortgage and possibly increase it for to remodel. That way, you not only create financial room for a remodel, but also lower your monthly expenses."
You can also choose to take out a consumer loan for your remodeling project. This is a short-term loan. No collateral is required and the interest paid is deductible. The disadvantage is that the interest rate on this loan is often a lot higher than on a mortgage.
Energy-saving measures are increasingly part of a remodel. It's good for the environment and your wallet. In some cases it is even compulsory to make your house more sustainable when renovating. You can take out an (extra) loan for energy-saving measures. There are also various subsidies. More information can be found on the websites of the central government and SVn.
The energy-saving measures will give your home a better energy label. This is a plus if you want to sell the home in the future. Starting in 2024, the energy label of your home will also affect the maximum mortgage.
NHG: lower interest rates and energy savings
If your home (value up to €435,000) qualifies for the National Mortgage Guarantee (NHG), the mortgage interest rate is often slightly lower than for a mortgage without NHG.
For investment in energy-saving measures, NHG has the Energy Savings Budget. It is then possible to apply for a mortgage up to a maximum of 106 percent of the home value, instead of the usual 100 percent.
Want to know more?
"There are several ways to finance a remodel. Do you have questions? We are happy to help you with personal advice. It is important that your mortgage fits well with your personal situation and wishes."
Mortgages inside sales representative at Alpina Roerdalen