Renovating a home often comes with significant costs. You can finance this with your own money, but many people choose to increase their mortgage for the renovation. If you haven’t done this before, no problem! De Financiële Alliantie is here to assist you. Our professional advisors will clearly explain everything and provide advice on increasing a mortgage for renovations, allowing you to focus entirely on the renovation itself.
Increasing a mortgage for renovations is not always possible. Mortgage lenders impose several conditions on this. For instance, increasing your mortgage is only possible if your home has equity or if it will increase in value due to the renovations. Additionally, the total mortgage amount cannot exceed the value of your home. The only exception is when you are making sustainability improvements to your home, where you may borrow more than one hundred percent of its value.
You can increase a mortgage for renovations in two ways: you can either informally increase your current loan or take out a second mortgage. The best option depends on your situation. To prevent you from making the wrong choice, our advisors will work with you to determine the best solution. Below, we briefly discuss both options for increasing your mortgage for renovations.
If you borrow less than the amount for which your current mortgage is registered with the notary, you can increase the loan to the maximum amount for which it is registered. This is known as an informal increase. The major advantage of informally increasing your mortgage for renovations is that you do not need to go back to the notary. Your loan is already registered. An informal increase may also be possible if you have already made repayments on your mortgage. In this case, your debt has decreased while the registered amount has remained the same.
If an informal increase is not possible, you can take out a second mortgage for the renovation. Since you are taking out a mortgage for renovations on top of your existing mortgage, this can only be done with your current bank. You will also have to visit a notary because a new mortgage deed needs to be drawn up.
If you take out an additional mortgage for your renovation together with De Financiële Alliantie, we will assess whether it is advantageous to transfer your mortgage to another bank. Our advisors compare all the lenders we work with, ensuring you always have a favorable mortgage with beneficial terms.
If you want to increase your mortgage, you go through the exact same process as when applying for a new mortgage. The amount of money you wish to borrow does not play a role in this. We always analyze your personal situation and take your wishes into account. Furthermore, we explain everything you need to know about mortgage types, interest rates, and terms, and we provide you with advice on increasing a mortgage for renovations. Together, we then choose the best and most cost-effective solution to realize the renovation.
Increasing a mortgage for renovations incurs costs. We cannot tell you exactly how much you will pay, as the price depends on your personal situation. Can you increase it informally? If so, you often pay less than if you need to take out a second mortgage for renovations. If you require an additional renovation mortgage, you will first face appraisal costs. Your bank wants to know the current value of your home to assess whether it is responsible to increase your mortgage. You can have an appraiser come by, but a desktop appraisal is also becoming increasingly possible. Since this is much cheaper, it is an attractive option. Additionally, you cannot avoid notary and registration fees. A new mortgage deed must be drawn up for a second mortgage.
Like any other mortgage advisor, De Financiële Alliantie also charges fees for mortgage advice. These costs are usually recouped. Our knowledgeable advisors help you find the best solution for your situation. This way, you can avoid unnecessarily high costs when increasing your mortgage for renovations.
Increasing a mortgage for renovations is something that most people have not done before. Does this apply to you as well? Then let the experienced advisors from De Financiële Alliantie assist you. Schedule a free and non-binding appointment, and we will get in touch with you shortly to plan a conversation. We listen to your needs, calculate how much increasing will cost you, and provide independent advice. You can also trust us to handle the increase of your mortgage for renovations with peace of mind.
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With the help of Laurens from De Financiële Alliantie, we were able to arrange the mortgage for our new home in no time. Less than two weeks after the purchase agreement, the mortgage was finalized, thanks to Laurens’s proactive approach. We had great conversations, received excellent advice, and it felt very personal. A huge thank you to De Financiële Alliantie, and especially to Laurens, for all your help! Highly recommended.
Erik en Mirjam via Google.nl on 18-7-2024
Laurens Thunnissen
We were recently very well assisted by De Financiële Alliantie regarding our mortgage application. Mr. Eric Fillet (advisor) helped us navigate the maze of the financial world. We highly recommend Mr. Fillet.
Fam. van der Heide via Google.nl on 12-7-2024
Eric Fillet
We worked with Magda from De Financiële Alliantie. She really went above and beyond for us. Since my husband is a business owner, there are many rules to navigate when obtaining a mortgage. Thanks to Magda’s perseverance, clear explanations, and determination, we were able to secure the mortgage we wanted. Additionally, she is very pleasant to work with.
Ida Hoekstra via Google.nl on 12-7-2024
Magda van Veen
We received excellent assistance from Robin once again. He takes the time for you and always answers his phone. Communication is quick, and the advice is professional.
Wessel Idzerda via Google.nl on 11-7-2024
Robin van Dam
Having used the services of DFA three times, they have consistently provided the best advice tailored to our needs! They are very committed and prefer short, personal communication. If you need financial advice, I highly recommend DFA! (In our case, for a mortgage.)
E. Alten via Google.nl on 17-6-2024
Marcel van Assen
Great guidance, quick responses, and friendly people! Always available for any questions.
Tim van der Kolk via Google.nl on 5-6-2024
Joost Fokke