Utilizing equity

Do you have equity in your home? That is a great advantage! You can use this wisely for things like renovations, making your home more sustainable, or as extra income in your daily life.

At Crefin & Partners, as mortgage advisors, we help you make the most of your equity. Schedule an appointment for a free, no-obligation consultation and discover what is possible for you!

What can you spend the equity on?
You can unlock equity in various ways. Here are the most popular options:

Increasing your mortgage
Based on a current valuation report, you can increase your mortgage by the amount of equity. You can then use this money for: renovating or extending your home, making it more sustainable (think of solar panels, insulation, or a heat pump), purchasing a car, a second home, or a holiday home, helping your child buy their own home, and other (consumptive) purposes.

Equity release mortgage
With an equity release mortgage, you unlock equity without having to sell your home. You receive a lump sum or a monthly payment. This is particularly popular among seniors who want to supplement their pension income.

We would be happy to help you in a personal consultation to see which solution best suits your situation.

Utilizing your equity: a step-by-step plan

We make utilizing your equity as easy as possible. This is the step-by-step plan:

We calculate the value of your home and your mortgage debt. The difference between the two is your equity. Next, tell us what you want to do with the equity. A free consultation will quickly give you insight.

We look at your financial situation and goals. Is a higher mortgage or an equity release mortgage better? Our Mortgage Advisor explains everything.
We submit the required appraisal report and documents to the bank so that the bank approves the withdrawal of your equity.
With the money released from your equity, you can carry out your plans.

How much does it cost to utilize equity?
Depending on the chosen solution, you will incur costs such as advice, valuation, and potentially notary fees. At Crefin & Partners, you pay a fixed, transparent price for our advice, without surprises. And good news: these advisory costs are tax-deductible. View our rates page for more information.

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.