Lower housing costs pay off faster? You want your existing mortgage or mortgage debt early and without penalty in 2014 or 2015 extra pay off, even if it is interest-only? You want to partially pay off your mortgage with savings or prefer to pay off monthly accelerated? Sometimes a bank will also undertake to pay off earlier and that you want to be. A mortgage repayments with their own money in 2014 or 2015 at the low savings rates can currently be advantageous and directly also means lower monthly payments. What redemption is really fiscally smart, if you have a mortgage or want to take out a mortgage? How can you pay off the best? What is the additional loan and mortgage debt and what does all this mean for first-time buyers? Please refer to the sample calculation of the net benefit of paying off a mortgage with savings. From 2013 to pay off the monthly norm, so also in 2015. Maybe you are also entitled to Hillen Act.
Anyone who has a mortgage in our country or soon will go close, thinking almost directly at the Tax Office. The question is above all what is fiscally smart and how the net costs of the house will amount to. Is paying off the mortgage clever or not? Yet these are less simple questions to answer than might appear at first glance.
First there is the credit crunch. Currently, banks are therefore much less generous to provide mortgages and will apply from August 2011 stricter rules. And if you get a mortgage, this happens often at high interest rates and with all the guarantees. The question therefore is not whether you should invest your own money, but how much private money you can and must contribute. This high mortgage rates could certainly for people who have a variable mortgage and therefore sensitive to rising interest rates are a great reason to pay off the mortgage or not entirely. Think of the amount of the mortgage granted up, also known as mortgage debt.
The amount of the mortgage which the mortgage interest is tax deductible, is subject to regulations. This mortgage debt shall amount to:
The purchase price of the home including acquisition costs;
Plus it funded financing;
Plus the cost of improvement or maintenance of your property;
Plus the surrender of the rights of leasehold lease or building lease;
Minus own home reserve if you have sold a house before;
Minus a donation by a parent to a child for the purchase of a private home.
Home ownership reserve or surplus value on the sale of a previous home play an important role in the loan scheme.
Who out a new mortgage in 2013 or increase an existing mortgage, to get that part to do with new supplementary tax rules of mortgage interest. Mortgage interest is still deductible if the new loan is repayable in 30 years. In other words, you are obliged to fix monthly will allow you to deduct mortgage interest for a new mortgage. A new or additional mortgage loan that does not meet these requirements, also makes no longer part of the mortgage debt, but comes in box 3 of the income tax justified.
The loan scheme is as ?? s tax system that makes it a little trickier. Especially for those who are younger and thinks the foreseeable future they will move again. Due to the additional loan scheme you can always include your current mortgage tax take kindly to your new home, if the mortgage is less than the price of the apartment for rent. The lower the mortgage, the less you can take. And if the house has value, ie the market value is higher than the mortgage on it alone, you must first stop on the value in the new home, before an increased mortgage with mortgage interest there may be. The Tax and speaks in such situation ?? s private home reserve. This personal property reserve remains valid for up to five years. You may however be increasing your mortgage, but several of the mortgage is not tax deductible.
Read your mortgage conditions just after. At quite a few mortgages is true that the bank may require you to repay the existing mortgage is under water, ie if the mortgage exceeds the value of the home. This can be seen, but you can bank for his.
So it seems almost as if paying off the mortgage is not very smart. But that's not the case again. From the article, the cheapest mortgage in the Netherlands shows that repayment is cheaper if you have a savings account. You pay no mortgage anymore, your assets in box 3 is less stress and if your mortgage is relatively small, the law also makes Hillen there that you hardly eigenwoningforfait, formerly rateable value, need to count on your income . Taken together, this great benefit for those who own money. Early repayment means lower monthly payments and less likely to pay property tax in box 3. Look good at the conditions that you can redeem without penalty. A disadvantage is that you have to repay less money freely available.
Your mortgage repayments as possible in the coming years just sensible. Indeed, the government has decided that from 2010 will increase the notional rental value for houses of more than one million in steps to 2.35 per cent of the house value added in 2016. And through the Law Hillen you can do something about these tax increases.
The first million is increased by the index, which is not necessarily always more homes will benefit from this scheme:
The additional costs for expensive housing is therefore in the extra percentage mark. In 2015, the notional rental value goes up which means a rise in housing costs
The Law Hillen means that if the notional rental value exceeds what you deduct mortgage interest and on the balance of both is so positive, you can set the balance to zero. This is on the income tax return a separate line item available.
1. sample calculation Hillen Act
Set your own rental value amounts to 5,000 euros and 2,500 euros to pull down mortgage rates, then it is positive balance 2.500 euro. Fill in the case where the addition of the lump sum is greater than the mortgage interest deduction, as a correction rule -2 500 euros. Thus, the net additional tax on your income equal to zero.
Often 10 percent per annum and repayable at a variable mortgage more. If you want to close your mortgage and also partially redeems, it is also possible to negotiate a lower mortgage rate. The risk for the bank is indeed getting smaller. Penalty-free repayment is usually addressed as:
The agreed fixed rate period is over.
You sell your home. Foreclosure this applies even if the foreclosure sale must take place outside of your debt.
There is death, whether or not combined with a benefit of the present term life insurance.
The home insurance pays the damage suffered and the property is virtually eliminated.
If the market rate is higher than your mortgage, you may even the entire amount at once without penalty repay.
2. calculation example mortgage repayments with savings
A sample calculation. Is repay part of the loan with savings is a good thing:
Set Hillen Act is not yet in not applicable.
Set mortgage rates on your mortgage is 5 percent.
Suppose you get 2.5 percent savings rate on your savings.
Suppose you pay 42 percent tax.
Then you pay on mortgage net 2.9 percent because of the 5 percent gross 42 percent of the tax is deductible. Net receive savings at 1.3 per cent, ie the interest rate of 2.5 percent minus the investment yield of 1.2 percent. In this case, it pays to repay so sure. Even if you do not pay property tax, because you have less than 20:00 euros savings per person, pays redeem: 2.5 percent interest on savings is always less than the 2.9% net on your mortgage. You pay 52% tax then it does not matter, because the mortgage less than 2.4%.
The final result also depends greatly on your income and the amount of savings and your tax rate and tax bracket. After all, less mortgage interest means a higher taxable income. So there is a uitverdieneffect through the income tax in box 1. Moreover, this can be detrimental to your tax allowances.
Repayment of the mortgage leads to lower monthly payments, but also means less mortgage interest, higher taxable income and have less money behind the hand. A number of advantages and disadvantages at a glance:
Benefits mortgage repayments through additional redemption:
Disadvantages mortgage repayments faster through additional redemption:
But private money is often not the first-time buyers. Even though it is much wiser not to buy, while leaving starters are often not retained. And there are also special mortgages for buyers on the market. Others look to their parents to love. Some parents take themselves an extra mortgage for their child or for example, are guaranteed by the mortgage, leaving a lower mortgage rate possible. Whether this is wise, each individual case is different.
A mortgage is closed for a long time. You might want to make interim changes. Consider the transfer of a mortgage, another ascription or a credit of another person. If you get married, divorced, sell your house and so on. If this occurs in writing to your bank for permission. Often the bank on conditions and in that case you do not again go through a notary, which would be a lot more expensive.
In fact, every starter first ask whether he wants to rent or buy. Of course, an owner-occupied if the potential benefit that value at any time will rise, but no one can say when and by how much. Certainly not with the current credit crisis. Renting is not cheap, but often gives more flexibility. And that's basically what we're looking for. A disadvantage of early repayment is that you are less flexible: stones can not eat immensely, if you are the residents themselves.
Turn therefore expenditures and income for another well in a row and step in when it suits you financially. Ask plenty of quotes and certainly do not go on a day of ice. Mortgage are there enough, but check if it suits you and what are the conditions. Estimate the future especially realistic, financially. Once the mortgage must be repaid, including interest-only mortgage.