Include a revolving credit in the mortgage or take out a loan to finance the remaining debt? There are various possibilities for such a loan within the purchase of a home or the use of surplus value.
Bear in mind that since 1 January 2013 a revolving credit is no longer deductible when you use it for the purchase, improvement or renovation of a home. That has to do with the fact that you do not have to make repayments immediately, a new condition to qualify for the deduction. This does not alter the fact that it is possible to take out a revolving credit to use the surplus value or to finance the residual debt.
Use surplus value with a revolving credit
Is there any surplus value within the home? When the value of the home is greater than the amount of the mortgage, surplus value arises. For example, you may have a mortgage of € 150,000, while the home is already worth € 200,000. That € 50,000 is then surplus value. Unfortunately, you can’t do anything with that, you can’t use the money to buy a nice new car. By taking out a revolving credit within the mortgage, you have that option. That way you can use the surplus value within the mortgage.
Revolving credit for the remaining debt
On the other hand, did a residual debt arise after the sale of a home? If the home is only worth € 180,000 and you have a mortgage of € 200,000, a residual debt of € 20,000 remains after sale. You can finance it with a revolving credit. This then becomes, as it were, part of the new mortgage. You can count on mortgage interest deduction for this credit, provided that the residual debt arises after October 29, 2012 and you close the revolving credit after January 1, 2013. Thanks to the deductibility, you pay a lower net interest for the credit you take out.
Take out online revolving credit
You can take out a revolving credit online , you don’t have to leave home. It is sufficient to make a calculation online of the maximum amount that you can borrow. You can then apply for a credit with one of the lenders. There is a good chance that you will have to submit a number of additional documents that, for example, show your income. Once everything is in order you can withdraw the money from the revolving credit whenever you want.