Eigen geld (Own money)

What is eigen geld (own money)?

Have you built up capital, for example by saving or investing? Then you can use this capital to finance your house. This capital is called equity. Own money offers on the one hand the possibility to borrow less, on the other hand you can pay a higher purchase price with your income.

Considering the use of your own money

When deciding whether to use this money to finance your home, you must make the following considerations.

  • You can lower the mortgage amount with your own money. A lower mortgage sum means a lower amount of mortgage interest each month.
  • Without investing your own money, the mortgage sum is higher. A high mortgage sum means a higher tax benefit due to the mortgage interest deduction.

Based on your personal situation, a mortgage adviser can determine whether it is wise to use your own money to finance the house.

Mortgage terms
Aankoopkosten (Purchase costs)
There are several additional costs associated with the purchase of a house. These one-time costs are called purchase costs. Afsluitkosten (Closing cost)
"Afsluitkosten" refers to the closing costs associated with taking out a mortgage. These costs include commissions, appraisal fees, notary fees, and fees for applying for a National Mortgage Guarantee (NHG). Bankgarantie (Bank guarantee)
When buying a house you will be asked for a bank guarantee. The bank guarantee is a guarantee that you, as the buyer of a house, must give to the civil-law notary. Belastingaftrek (Tax deductions)
The government has various tax measures that are favorable to homeowners with a mortgage. Betalingstermijn (Term of payment)
The payment term is the periodic term in which you pay the interest, premium and possibly also the repayment. Boeterente (Penalty interest)
Lenders charge a penalty if the mortgage is repaid earlier than agreed in the mortgage deed, for example when refinancing. With the penalty interest, the lender compensates for the lost income from the mortgage. Bouwfinanciering (Construction finance)
Construction financing is the way in which you can finance a new building. Bruto jaarinkomen (Gross annual income)
The gross annual income (or gross annual salary) is the income before deductions. Read what is included in the gross annual salary. We also provide a handy rule of thumb to calculate this. Bruto maandlast hypotheek (Gross monthly mortgage payment)
Gross means 'without deduction'. The gross monthly payment for a mortgage is the amount that is paid monthly without mortgage interest deduction without tax settlement. Eigen geld (Own money)
You can use this capital to finance your house. This capital is called equity. Own money offers on the one hand the possibility to borrow less