Utilizing your equity: frequently asked questions

We often hear the question of whether it is wise to withdraw equity, because if house prices fall, you run the risk of your house becoming underwater. Moreover, in many cases, you will face higher monthly payments.

It is therefore wise not to withdraw your entire equity, but to maintain a buffer and to seek good advice from a mortgage advisor. This way, you can be sure that you are making a sensible choice.

If you buy a new home within three years, you must reinvest the equity to retain the interest deduction. Our Mortgage Advisor would be happy to explain this in a personal meeting.

Yes, this is possible with an equity release mortgage or mortgage increase. Crefin & Partners will find the best option for you.

This depends on your income and goals. Our Mortgage Advisor will check if it fits.

There is no taxation on home equity: you do not have to pay tax on the equity itself. However, you may face taxes, depending on exactly what you do with the equity.

If you put the equity into your savings account, you transfer it to Box 3 and will have to pay wealth tax on it.

Are you also going to buy another home after selling your house? Then you must first use the equity to reduce the mortgage amount of your new home. If you do not do this, the mortgage interest on that portion is no longer deductible and the mortgage falls under Box 3.

You can also use the equity for a gift to your child or children. The money then no longer belongs to your personal assets and you do not owe Box 3 wealth tax on it. It is possible that your child will have to pay gift tax, but fortunately, various exemptions apply.

Our mortgage advisor would be happy to advise you on the tax implications of the option you have in mind.

Our first consultation is free. For advice and mediation, you pay a fixed price, which is tax-deductible and can be found on our rates page.