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
Eigenwoningforfait (Notional rental value)
"Eigenwoningforfait" is a tax on the theoretical income that a homeowner could earn by renting out their home, even if they do not actually rent it out. Erfpacht (Ground lease)
Often houses in the Netherlands are not on private land, but on leasehold land. This leasehold land is then rented from the landowner (often the municipality). Hypotheekakte (mortgage deed)
The mortgage deed is the official contract for a mortgage. The mortgage deed contains all agreements with the bank that relate to the mortgage. Hypotheeksom (Mortgage sum)
he mortgage sum is the total amount that is borrowed from a lender. Koopakte (Purchase deed)
The written purchase agreement between the buyer and seller of a house. Other words for koopakte are koopcontract or koopovereenkomst (purchase contract or purchase agreement). Maandlast netto (Monthly charge net)
The net monthly payment is the amount that is paid monthly for the mortgage after tax settlement. Therefore, the tax is taken into account. National Mortgage Guarantee (NHG)
 Notariskosten (Notary fees)
When you buy a house, a visit to the notary is unavoidable. The deeds required for the purchase of a home are drawn up by a notary. Taxatiekosten (Appraisal costs)
The appraisal costs are one of the additional costs when taking out a mortgage. They are the costs for the valuation of a house by an independent appraiser. WOZ-waarde
WOZ stands for Valuation of Real Estate (Waardering Onroerende Zaken). The WOZ Act ensures that all governments use the same valuation for a home when levying taxes.