Moving to your next home, how do you approach it?

You've been living comfortably for a while, but your current home no longer quite fits your life. More space needed, a different neighbourhood, or simply ready for something new. Selling and buying at the same time raises questions: what's my equity, can I take my mortgage with me, and what if the sale takes longer than the purchase?

This guide gives you a broad overview of what's different from the last time you took out a mortgage: new choices, different figures, and a process with two sides happening at once. For the translation to your personal situation, with all the details that come with it, we're here for you.

Three things that are different this time

A second or later mortgage brings topics into play that didn't come up with your first purchase. Here's a short introduction.

Equity

The difference between your current home's sale price and your remaining mortgage debt. Under the Dutch bijleenregeling, you have to put this equity back into the purchase or renovation of your new home.

Taking your mortgage with you

With most lenders, you can bring the interest rate and conditions of your current mortgage with you to your new home, rather than taking out a completely new mortgage.

Double housing costs

If the purchase of your new home doesn't line up with the sale of your current one, you could temporarily carry two mortgage payments. This requires sufficient savings.

None of these topics stand on their own: they're connected to the timing of your sale and purchase.

What can you borrow, what does it really cost

A second mortgage brings different factors into play than the first time around. Here's the answer in broad strokes; the exact figures depend on your situation.

What determines your borrowing capacity

• Your (combined) gross annual income
• The equity from your current home
• Your mortgage history
• Any existing loans or financial obligations
• The current mortgage rate and the value of the new home

If you don't use your full equity for the new home, the Dutch tax office can exclude part of your mortgage from interest tax relief.

That is the bijleenregeling, and the reason why counting your equity matters so much. We'll work out together what this means for you.

Costs when moving

• Notary fees for the new mortgage deed
• Transfer tax
• Valuation fees for the new home
• Optional valuation fees for your current home
• Advisory fees
• Optional NHG (Dutch National Mortgage Guarantee)
• Optional bridging loan

Good to know

As a mover, the first-time buyer exemption no longer applies. You can often bring across (part of) your mortgage rate and remaining fixed-rate period, though. We'll look together at whether this works in your favour.

The process in a nutshell

1. Valuation and borrowing capacity. Together we work out the likely sale value of your current home and what's realistic to borrow for your next step.
2. Searching for a new home. You start looking for your next home. We help you think through your offer and the right conditions.
3. Offer and provisional purchase contract. Once your offer is accepted, the purchase agreement follows, including the cooling-off period and financing contingency. We go through this together, so it's clear exactly what you're signing.
4. Mortgage application. We arrange the application with the lender, including bringing across your equity and possibly your existing mortgage. If your current home sells after the purchase, we'll also arrange a bridging loan.
5. At the notary. The sale of your current home and the purchase of the new one are settled at the notary, and the keys are yours.

What we do for you

• Advise and arrange your mortgage and insurance
• Align your sale and purchase financially
• Discuss risks, and cover them if needed for death, disability or unemployment
• Fully coordinate with the notary, valuer and structural surveyor
• Short lines of contact: reachable via WhatsApp, phone and email
• Personal contact, at our office, at your home or online

Common mistakes movers make

1. Not counting your equity. If you don't, you may miss out on tax benefits because of the bijleenregeling.
2. Not aligning sale and purchase. Without good planning, you risk double housing costs or time pressure.
3. Underestimating double housing costs. Without sufficient savings, you can temporarily get stuck between two homes.
4. Letting go of your old conditions too easily. Sometimes bringing your current mortgage (rate) with you is cheaper than taking out a new one.

Ready to talk further?

Every situation is different, and the details often make the difference. Schedule a no-obligation introductory meeting, or ask your question in advance via WhatsApp, phone or email.