Calculate a second mortgage.

Use the tool above to calculate your maximum second or extra mortgage. Are you considering an extra mortgage for, for example:

• a renovation;
• large personal expenses;
• paying off an expensive loan;
• starting your own business?

Do you need extra money for a renovation, a new camper or another large expense? It is possible to take out a second mortgage on your home. This is financing on top of your existing mortgage.

A second mortgage serves as an addition to your first mortgage. The first mortgage simply continues to run. Unlike with refinancing, there is therefore no early repayment penalty. When you take out a second mortgage loan you go through the same process as with a first loan. You can do this with both your current mortgage provider and a different provider. You also have the freedom to choose different mortgage types.

It can be financially attractive to use the money for a renovation. The interest on the second mortgage is tax deductible with a linear or annuity mortgage. The interest is only deductible when you can prove that the money is being used for improvements to the home. The interest is not tax deductible if you use the loan for other things, such as a second home or a new car.

Calculating a second mortgage

Whether you can take out a second mortgage depends on the level of your income, the size of your current mortgage and the value of your home. Just like with your first mortgage, any debts and other obligations, such as spousal maintenance, are also taken into account. With our tools you can calculate the second mortgage. You can also first calculate your maximum mortgage.

Your gross income forms the basis for calculating the second mortgage. You can borrow up to one hundred percent of the value of the home. The first mortgage continues to run, so you include it in the calculation. The maximum amount you can borrow for a second mortgage loan is roughly your maximum loan based on your income, minus the first mortgage.

Why take out a second mortgage?

A second mortgage can be the ideal solution in various situations. For example, if you want to renovate your home and you receive a high quote of tens of thousands of euros for it. Money that you may not simply have on hand.

Whether you can take out a second mortgage depends on various factors:

• the value of your home;
• your gross income;
• your current mortgage;
• the reason for the second mortgage: a renovation or a holiday home?

In many cases people take out a second mortgage to renovate or maintain a home, but you can also use a second mortgage to use the home equity from your home for other purposes.

When you meet all the conditions, the second mortgage gives you the chance to finance the expense at a competitive interest rate, because you can use the home as collateral. That means less risk for the provider. If you are unable to repay the loan, the provider can sell the collateral (the home) and recover the money that way. That lowers the risk for the bank, which is why you pay a lower interest rate than with a consumer loan.

Alternative to the second mortgage

In some cases it is possible to increase your current mortgage. When the registration of your mortgage with the notary is higher than the amount borrowed, you can increase the mortgage privately. It may also be that you have already repaid a lot and that a large difference has arisen between the registered amount and the actual debt. A private increase is also possible when there is home equity on the property. In principle this works the same as with a second mortgage. Again, it is important that you use the money for improving the home and that your income allows you to borrow the higher amount and pay higher monthly costs.

By increasing the mortgage privately, a sum of money becomes available that you can spend, just like with a second mortgage. The advantage of a private increase is that you do not have to go to the notary, which saves you a lot of costs. On the other hand, keep in mind that you do not have the freedom to choose a different provider: you are tied to your current mortgage provider.

Pros and cons of an extra mortgage

An advantage of the second or extra mortgage is that you can take it out with a provider of your choice. That can be with the bank where your first mortgage also runs, but it does not have to be. This gives you complete freedom. An independent mortgage adviser can help you make a good comparison between the various mortgage providers. In addition, you can already calculate the second mortgage online to see how much you can borrow.

Do keep in mind that there are costs associated with taking out the second mortgage. Both at the bank where you arrange the financing and at the notary, who sorts out the legal side for you.

It is also possible to pay off another loan with a second mortgage. With a consumer loan the interest can quickly add up, while the mortgage interest during the fixed-rate period is usually a lot lower. The bank has more security, because with a mortgage loan the home serves as collateral. If there is home equity, it can therefore pay off to refinance the loan into a mortgage. The interest paid on your second mortgage is (partly) not tax deductible, but your monthly costs are lower.

The disadvantage is that you incur extra costs when taking out an extra mortgage. So take a good look at the rules and the small print. An independent mortgage adviser can help you with this and assist you in making the right choice between the various mortgage providers.

Calculate right away how much I can borrow

Curious about the options for an extra mortgage? You can calculate yourself how much you need for the second mortgage and what the costs of it are. This gives you an idea of the extra monthly costs you need to take into account, so you are not caught by surprise. It is important that you ensure yourself that the money benefits the improvement of your own home, and that you can prove this. The bank will want to check the reason for a second mortgage at the moment you make the application. Keep that in mind.

It is wise to contact an independent mortgage adviser. They can look at the options together with you and help you make a precise calculation of the monthly costs and the one-off costs when taking out an extra mortgage. Moreover, an adviser can help you choose between a second mortgage or a private increase of your current mortgage.

Expert mortgage advice

Want to know more about the options for a mortgage? Request a free and no-obligation orientation meeting with a mortgage adviser from HypotheekBerekenen.nl.