Borrowing money, costs money

Financing the costs of the buyer with a loan

June 29, 2017

Financing the costs of the buyer of your new home

When purchasing a house you will have to deal with additional costs: the so-calledbuyer costs . You have to pay the notary for passing the deed of sale and you pay transfer tax. These additional costs are indicated in the asking price of a home with the abbreviation kk. In addition, you also have to deal with closing costs for the mortgage to the bank and, for example, appraisal costs. You could always co-finance these costs with the mortgage, but the stricter regulations surrounding mortgages make this increasingly difficult. We will go to the point that buying your own house in the future is only possible with a (large) part of your own money.

Mortgage amount insufficient for kk?

At the moment you can still take out a mortgage of up to 101%, but this will be adjusted to 100% from 2018 . If consumers do not have sufficient resources of their own to finance the additional costs, they can take out consumer credit for this. This is already being done to an increasing extent: research among consumers shows that 12% reduces the mortgage amount by taking out a Personal Loan or Revolving Credit .

AFM: Buyer costs through mortgage

The AFM does not want advisers to advise clients to finance the costs of the buyer with a consumer credit. If there is enough room to increase the mortgage, that is a better option. This is in view of the responsible lending, which the AFM strives for. In addition to a current top mortgage, you can take out a consumer credit, which is not (yet) prohibited by law. But the question is whether this is wise since you are on the maximum mortgage amount. The AFM strives for responsible lending and this development does not appear to be achieving this.

Buy a house? Mortgage. Other loan purposes? Consumptive credit.

A mortgage is basically intended to finance your house; a consumer credit is not. If you want to take out a loan to finance a house, then you are initially referred to a mortgage because of the low interest rate and its security. You take out a mortgage with a term of 30 years with your house as collateral. The approach is to have repaid your mortgage at the end of the term so that the house is fully owned by you.

Taking out a consumer credit in addition to your mortgage is quite possible if you can bear it financially. With a loan you enter into another payment obligation in addition to the monthly mortgage and other fixed costs that a household entails.

If you want to borrow money for a loan purpose other than your home, which form of financing do you choose? A mortgage has a term of 30 years. The economic life of, for example, a car or caravan is much shorter. The term of a loan is more in line with this. You prevent that you are still paying off while the car or caravan has already been debited.

Do you want to renovate your house? You can co-finance this loan goal with your mortgage if you still have room for this. Are you on the maximum mortgage amount? Then you can finance your renovation with a loan . The advantage is that the term of a loan is shorter and you can redeem the loan in the interim free of charge.

How do you finance the costs of the buyer?

How do you finance the costs of the buyer? Through your mortgage or through a loan? Get well-informed by a specialist so that you make the best choice for your situation.

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