Can I Borrow Extra to Renovate My Home?

Increasing your mortgage for the renovation

Want to borrow money for your renovation? Then you usually increase your existing mortgage. The loan parts you already have simply keep their current term and interest rate. You add a new loan part for the renovation amount, at the interest rate that applies at that moment.

The construction deposit (bouwdepot)

The money for your renovation is usually placed in a construction deposit, in Dutch a bouwdepot. This is a separate account where the amount sits ready until you need it. Do you already have enough equity in your home? Then a construction deposit is not always necessary and the money can also be paid out directly. Is the money held in a construction deposit? Then you draw it out by showing receipts for your purchases and invoices from your contractor. That way the bank knows for certain that the money is actually spent on the renovation.

The renovation valuation

For a mortgage increase, a renovation valuation is usually required. For this you first draw up a clear renovation specification, describing what you are going to do and what it will cost. The appraiser takes that specification into account and determines both the value of your home before the renovation and the value after it. Those two values determine how much extra you can borrow.

From what amount is this worthwhile

A mortgage increase for a renovation comes with costs, think of advice and sometimes a valuation. That is why this route usually only becomes worthwhile for renovations of €15,000 and up. Is the amount smaller? Then we are happy to look with you at another form of financing that suits you better.

With or without a notary

Whether you need to visit the notary for the increase depends on how your mortgage is registered. Is your mortgage registered at the Land Registry (Kadaster) for a higher amount than what you currently borrow? Then the increase can often be arranged without a notary. If that room is not there, we go to the notary together to record the increase.

A completely new application

An increase is a completely new application moment. You supply the same documents that are needed when buying a home, such as an employer's statement (werkgeversverklaring) and your most recent payslips. The bank assesses again whether your new situation, after the extra borrowing, is responsible for you.

With your current bank

You almost always arrange a mortgage increase with the bank where your current mortgage is held. Would you rather switch to another bank? Then an increase is not enough and you need to refinance the whole mortgage, including your existing loan parts. In that case you will visit the notary anyway.

With or without NHG

Does your current mortgage have NHG, the Dutch National Mortgage Guarantee? Then you can often take out the increase either with or without NHG. Which choice fits your situation best is something we are happy to look at together.

Curious what is possible in your situation?

Every situation is different, and what is possible depends on your current mortgage, the value of your home and your renovation plans. As an independent mortgage advice firm in Tilburg, we are happy to think along with you. Feel free to get in touch, and we will look together at what is feasible for you.