If you want to renovate your home or if your home needs major maintenance, raising your mortgage is one of the options for financing this. However, raising your mortgage entails the necessary costs. You can read about the costs that you incur in this article.
Increase mortgage costs
It depends on your mortgage and mortgage provider what costs you all incur and how high these costs are. You usually pay the following costs when you increase your mortgage:
- Advisory costs
- Notary fees
- Handling / administration costs
- Costs of the valuation report
For all these costs it applies that there is no fixed amount, but that they depend on, for example, your mortgage provider, appraiser or notary. Mortgage experts roughly state that raising your mortgage costs around 1,300 to 2,500 euros.
Increase mortgage – Alternatives
If you find the costs for raising your mortgage too high, there are various other options for financing major maintenance or renovation of your home.
Increase mortgage costs – Personal loan
For example, a personal loan is an alternative. The advantage of a personal loan is that you do not have to deal with all kinds of additional costs. On the other hand, the interest is often a lot higher than the mortgage interest . However, this credit interest is deductible. Moreover, you have usually repaid the personal loan much earlier than your mortgage, so that you pay interest over a shorter period. .
Increased mortgage – Second mortgage
Taking out a second mortgage is another option. A second mortgage involves the same costs as increasing your mortgage. However, you can take out a second mortgage both with your current mortgage provider and with another provider. This gives you the option of choosing the provider with the lowest advisory and handling costs.
Mortgage transfer and increase
A final option is to take out your total mortgage. This may be interesting if your current mortgage type no longer suits you, you pay too much interest or you are no longer satisfied with the terms of your mortgage. Keep in mind that you pay a fine to your current mortgage lender if you transfer before the end date of your fixed-rate period has been reached. In the article ‘ Transferring a mortgage’ you will find more explanation and tips for transferring a mortgage.