Those who want to absorb surplus-value can now also go to the municipality. With the redemption loan from DVloan you use surplus-value to improve your house.
New initiative for recording surplus-value
There is a new initiative for withdrawing surplus-value from the mortgage. The Housing Fund Netherlands Fund has introduced the ‘Silvering loan’.
The social purpose of DVloan makes it possible to include the surplus-value for a broad target group, also with a low income and / or limited box-3 capital.
Conditions of the redemption loan
The redemption loan from DVloan is a so-called reverse mortgage. You do not pay off and instead of paying interest, this amount is added to the mortgage amount. Your disposable income remains the same. Furthermore, the loan redemption has the following conditions:
- The Redemption Loan is provided without an income and wealth test.
- It is possible to include excess value 10 years before retirement date without a maximum age.
- The surplus-value can be included up to a maximum of 80% of the WOZ value or market value of the home.
All this at an attractive interest rate. In order to be eligible for the DVloan redemption loan, the surplus-value must in the first instance be used for ‘comfortable and safe living’. Your municipality ultimately determines whether the loan will be allocated. Here you can see which municipalities offer the Redemption Loan.
Possibilities of incorporating surplus-value increased
The possibilities for absorbing surplus-value have increased in recent years. For example, various money providers have reintroduced the Silver-lending mortgage. Here too, your monthly costs will remain the same and the loan will not be tested for (lower) income after retirement.
The conditions of these commercial products are often less broad. For example, the surplus-value can only be withdrawn from the state pension age and up to 50% – 65% of the home value. Also the interest that is added to the mortgage sum is often somewhat higher.
The advantage of a cash-in mortgage at a commercial bank is that you can spend the surplus-value freely. Consider, for example, a supplement to the pension income (eating home) or a gift to the (grand) children.
Extra spending space
Of course there is always the possibility to increase the mortgage ‘regularly’, for example if your home bank does not offer a cash-in mortgage.
If there are no possibilities within the mortgage for extra spending room, then a consumer loan can offer a solution. An interesting alternative because you do not pay any closing costs. A longer term and interest deduction are possible for an investment in the owner-occupied home.