Will you soon be done with paying off your home loan? Or have you already paid it off recently? Now's a great time to plan your improvement works. Reuse your current mortgage for doing improvements and you can get financial benefits.
A beneficial budget for your improvement works
If you take out a new home loan, you pay no notaries' or mortgage fees if your can reuse your existing mortgage. Plus, you could also get tax benefits, depending on your personal situation.
You can reuse your existing mortgage to take out a new home loan at any time while your home loan is running, and even after you've fully paid it off.
Talk about it with an expert and find out what benefits you could get.
What reusing your mortgage involves
When you reuse your mortgage, you use your existing mortgage to guarantee a new home loan. This used to be called 'resumption' or 'extension'.
With resumption or extension of a loan, you couldn't borrow more than the original loan sum, but with reuse you can borrow more than the amount of your initial mortgage loan.
The purpose of your loan
- You can borrow in order to carry out alterations or improvement works on your home. Plus, if your home is over ten years old and isn't let out, you can do the improvement works at a reduced VAT rate.
- You can even apply for a new home loan to buy a second home or a property to let.
Why you should reuse your mortgage
- If the mortgage over your home has not yet expired, you can borrow new funds without having to pay mortgage charges. That means you don't have to go to a notary-public and so don't pay any notarial fees.
- For a new home loan, you benefit from the current low interest rate since your new borrowings are at today's low rate, regardless of the rate on your initial home loan.
- Paying off a home loan can qualify you for a tax break. These benefits stop once the loan is paid off. Depending on your personal situation, you can continue to qualify for tax relief with a new home loan.
With KBC' home loan calculator, you can easily work out how much your mortgage loan will cost you at today's interest rates.
If you'd like to reuse your existing mortgage or have other questions about how to finance your improvement works, just make an appointment with your KBC branch.
If you can't reuse your existing mortgage
If you're planning alteration works but can't reuse your mortgage, KBC can offer you a home improvement loan at an attractive fixed rate of interest, which will not involve you in paying loan arrangement or registration charges. With KBC, you can easily calculate and apply for a loan online.