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Financing residual debt

Selling your house for a profit is the best scenario. However, the reality can be different . If the mortgage debt on your owner-occupied home is higher than the (sale) value of the home, you will be left with a debt after the sale. You call this a residual debt. How are you going to finance it? Via a mortgage or via consumer credit?

Important change with regard to tax deductibility of residual debt financing as of 1-1-2018.
You can continue to finance your residual debt with the low interest rates of a personal loan or revolving credit, but the interest costs are NO longer tax-deductible as was the case until December 31, 2017. This is a decision by the government.

Amount of the residual debt

You can calculate the amount of the residual debt yourself. The calculation looks like this:

The selling price of the house minus the costs you incur to sell your house minus the amount of purchase, improvement and maintenance of the house. You must pay off this amount of residual debt.

If you have a residual debt, then you should consider what options you have to pay this amount. Together with our advisor you can discuss all the pros and cons of the options you have.

Remission of a residual debt

If you have bought a house that is covered by the National Mortgage Guarantee (NHG) and you cannot co-finance your residual debt in a new mortgage or take out a loan for it, you may be eligible for cancellation of the residual debt . You must then meet a number of conditions. For example, you are only eligible for a waiver if you have to sell your house. You must also have done everything you can to limit your loss.

Mortgage or consumer credit

Contact our advisor and determine how you are going to finance the residual debt and your new mortgage (for your new home). You will always receive advice and a tailor-made proposal from our advisor. He advises you whether financing through a mortgage or through a consumer credit is the best form of financing to pay your residual debt.

In most cases, taking out a mortgage is not possible if there is still a residual debt. So when you take out your new mortgage, you simultaneously take out a loan to finance the residual debt. We can help you take out the new mortgage. We also have that expertise in-house.

The interest rates for consumer credit are low, so you benefit from low monthly costs when you take out a loan. The application for financing the residual debt can be done online via the website . After we have received your application for a loan, our advisor will contact you and make a suitable proposal. A Personal Loan with a term of 10 years is the most frequently granted loan for residual debt financing.

Personal loan

You can finance your residual debt with a Personal Loan . You then borrow the amount needed to pay off your residual debt once. You then pay a fixed amount per month in interest and repayment.

The advantage of a Personal Loan compared to a Revolving Credit or mortgage is that you know exactly what you have to pay off each month and on what date your loan is fully repaid.

Prevent residual debt

You have little influence on the selling price of your house. But you can control the amount of the residual debt yourself by making additional interim repayments during the term of your mortgage. Thanks to these extra repayments, you reduce the mortgage debt. If you have an interest-only mortgage, this also reduces the monthly costs.

Accelerated repayments are not always allowed free of charge, or there is a maximum amount per year. If you have to pay a penalty interest , you can choose to put extra money away yourself instead of accelerated repayments and in this way save an amount to reduce your possible residual debt or to be able to pay it in full.

In the case of a mortgage or consumer credit, you also have to deal with changes in the regulations that politicians are implementing. It is therefore always advisable to ask our advisors which rules you should take into account. They are always aware of the latest changes and new rules.

Calculation tool

This tool calculates the loan amount that you can take out to finance your residual debt. The amount of the loan depends on your situation (family composition, income, employment). You can consult by telephone with our advisers, specialists in this field. He or she will help you step by step.

Financing residual debt by Rabobank

Do you have a residual debt on your mortgage with Rabobank? If Rabobank cannot help you finance your residual debt, you can contact our advisers. They advise you which steps you can take to make an arrangement for your residual debt. Would you like to co-finance with the next mortgage or take out a loan ? You will receive a tailor-made proposal.

Request quote

You can request a quote free of charge and without obligation if you know which loan and for what loan amount you want to take out a loan. We are happy to send you a quote and you collect the correct documents that are necessary to take out the loan. Think of a signed sales agreement. The bill of settlement, which you receive from the civil-law notary, states the amounts that you receive or pay in relation to the purchase or sale of a home. You will receive the invoice a few days before the transfer. We will receive the settlement invoice afterwards. You send us all documents digitally so that the bank can check the documents. After approval from the bank, the loan can be disbursed.

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