11 January 2022
Mortgage and renovation in the Netherlands
Egle Kemezyte
Growth Marketer

Do you have plans to renovate your kitchen or make your home more sustainable? There is a chance you can increase your mortgage to improve your home. In this way, you do not need to use your savings.

Apply for a new mortgage lender

You can pay off your current mortgage and take out a higher new mortgage. In this case, you must go through the mortgage application again - pay all closing fees and revisit a notary. If you have a fixed mortgage interest rate for x years, you must pay the penalty to your existing mortgage lender.

Stay with the same lender

When you sign the mortgage deed at the notary's office, you have an option to register a higher mortgage sum at the civil notary when you first apply for a mortgage.

That could be the amount of your mortgage, but many mortgages are intentionally registered higher at the start.

In this case, you increase your mortgage without paying any fees and visiting a notary. Your mortgage lender usually reviews your income and the home's value.
If you have a higher mortgage registration and want to switch lenders, you must first obtain approval from your present bank.

Apply for a second mortgage

If previously discussed options do not work for you, you can always take a second mortgage. If you have built equity in your home, you can take out a second mortgage on top of your existing mortgage with the mortgage lender. Yet, you must visit the notary and pay closing fees.

Personal saving

If you have saved enough money, You can always use it to renovate your home.

Personal loan 

You pay a higher interest rate for a personal loan than a mortgage, yet you do not need to pay any extras such as closing fees.

The disadvantage of a personal loan has higher fees and a shorter repayment period, while your mortgage payments are lower and spread over 30 years.

If you decide to apply for a new mortgage or transfer your existing mortgage, you pay:
  • Appraisal costs

  • Notary

  • Mortgage broker fees

Good to know

1. Your mortgage lender gives you additional funds to improve your home.
2. Your repayment increases every month.
3. Your house market value tends to increase.

Sustainable banks

Some banks, such as ABN AMRO, offer a sustainable mortgage to improve your home. You can get good conditions and a desirable interest offer if you plan to enhance your home sustainably. If you increase your mortgage to make your home more  sustainable, you can borrow up to 106% of the market value of your home. To make your home more sustainable, you can borrow a minimum of €5,000 and a maximum of €25,000.

Do you have plans to renovate your home?

Plan a free call with our mortgage advisors

Meet the team
Sezer Yilmaz
Egle Kemezyte
Growth Marketer
Robin Uijtdehaage
Client Director & Financial Specialist
Lisa Grondsma
Financial Specialist