Taking your mortgage to a new home
Carrying your mortgage over to your new home can be an advantageous option, especially when your current mortgage has good terms. Think of a favorable interest rate or a pleasant mortgage type. In this article, you read about when you can carry over your existing mortgage and when it is or isn't advisable.
Go directly to:
- Can you carry your current mortgage over to your new home?
- How does carrying over your existing mortgage work?
- Is carrying over your old mortgage always advisable?
- What costs are involved in carrying over your mortgage?
- Frequently asked questions
Can you carry your current mortgage over to your new home?
Yes, it is possible to carry your current mortgage over to your new home. This can be handy if you have taken out your old mortgage under favorable terms. Think of a low interest rate that you have locked in for a long time, or a favorable mortgage type for you, such as an interest-only mortgage.
Carrying over your mortgage is also known as the ‘moving scheme’ or ‘carrying scheme’. The conditions of this scheme may vary per mortgage lender.
How does carrying over your existing mortgage work?
If you are moving and considering carrying your old mortgage over, it is advisable to contact your current mortgage lender quickly. Sometimes you must inform them well in advance that you want to carry the mortgage over to your new home. Ask about the conditions in time.
The mortgage lender views the application to carry over your current mortgage as a new mortgage application. This means that your situation will be reassessed. The mortgage amount is determined based on your income and the property value of your new house. As always, you can borrow up to 100% of the property value.
Note: the interest rate does not always remain the same if you carry over your existing mortgage. Mortgage lenders apply different interest rates per risk class. For a mortgage with NHG, for example, you pay less interest than for a mortgage without NHG, and for a mortgage for 60% of the market value, you pay less interest than for a mortgage for 100% of the market value.
Four situations may occur when carrying over your mortgage:
- You need a higher mortgage amount
- You need a lower mortgage amount
- Your mortgage amount remains the same
- You have not bought a new property yet
You need a higher mortgage amount
In many cases, people move to a more expensive home. For example, they move from a starter home to a family home, or they move to a place with a larger garden or a more favorable location. Naturally, there is a price tag attached to that. To be able to pay for the home, you need a higher mortgage amount.
If you want to carry over your old mortgage, you can only do so for the mortgage amount for which that mortgage was taken out. For the remaining part of the financing, you must take out a new mortgage. You apply for that new mortgage with the same mortgage lender; other banks will not want to provide such an additional mortgage.
For the old mortgage, the same interest rate applies (during the fixed-interest period), provided you remain in the same risk class. For the new mortgage, the mortgage interest rate is determined anew.
You need a lower mortgage amount
Are you going to live more cheaply? For example, because your children have left home and you are downsizing? Then you need a lower mortgage amount for financing your new home. In that case, you can carry over your old mortgage for the mortgage amount you need. You can, for example, repay your mortgage with the remaining part of the amount, use it for a renovation, or liquidate it.
Note: the part of the money that you do not use for your own property is not tax-deductible.
Your mortgage amount remains the same
If the mortgage amount remains the same, you can probably carry your mortgage fully over to your new home. Ask about the conditions with your mortgage lender or make an appointment for a mortgage consultation with a mortgage advisor.
You have not bought a new property yet
Have you sold your old house but not yet found a new home? Or is there a few months' gap between the official moment of the sale of your old house and the purchase of your new home? Then ask your mortgage lender in time about the conditions of the moving scheme. You only have a limited time to carry your mortgage over to your new home.
Read more about buying a home
Is carrying over your old mortgage always advisable?
No, carrying over your old mortgage is not always advisable. Especially if you need an additional mortgage and the new interest rate is high with your current mortgage lender, it is wise to consider various options. Compare carrying over your existing mortgage combined with an additional mortgage with taking out a completely new mortgage with other banks.
A mortgage advisor can help you make the most advantageous choice. In our article on comparing mortgage advisors we help you find the right professional.
Example calculation: new mortgage is more advantageous
Suppose you have a mortgage of €400,000 with an interest rate of 3% at your current bank. For financing your new house, you need an additional mortgage of €150,000. Your current bank applies a new interest rate of 4%. At another bank, you can get an interest rate of 3.2%.
If we do the math, at your current bank you pay an interest amount of €18,000 per year (€400,000 x 3% + €150,000 x 4% = €12,000 + €6,000). If you take out a new mortgage with the other bank, you would pay an interest amount of €17,600 per year (€550,000 x 3.2% = €17,600). In this case, it is more advantageous to switch to the other bank and not carry over your mortgage.
Example calculation: carrying over mortgage is more advantageous
Suppose you only needed to borrow €50,000 extra instead of €150,000, then carrying over your mortgage would have been cheaper than taking out a new mortgage with the other bank. At your current bank, you pay an interest amount of €14,000 (€400,000 x 3% + €50,000 x 4% = €12,000 + €2,000). At the new bank, you would pay an interest amount of €14,400 (€450,000 x 3.2% = €14,400).
It completely depends on your situation what the most advantageous option is. A mortgage advisor can help you find the best mortgage.
Discover everything about mortgage advice
What costs are involved in carrying over your mortgage?
To be able to carry your mortgage over to your new home, you need to incur several costs. Below, you can read about the costs you may face.
- Costs for mortgage advice: You will likely need to hire a mortgage advisor for transferring your mortgage and choosing the best option for your new situation. The costs vary, depending on the advisor and the complexity of your mortgage. For independent mortgage advice, most advisors charge between €2,500 and €4,000. Read more about the costs for mortgage advice.
- Notary costs: For drafting the new mortgage agreement, you need to go to the notary. The notary costs depend on the notary and the region. In total, you can expect costs between €1,000 and €3,000, including delivery deed, mortgage deed, and other costs.
- Appraisal costs: To determine the value of your new property, an appraisal is needed. The costs depend on the appraiser and the region. On average, the costs for an appraisal report for a house range between €600 and €900, including VAT.
- Possible costs for NHG: If you use the NHG, you pay a one-time guarantee commission. These costs amount to 0.6% of the mortgage amount (in 2024). The NHG can be beneficial as it can reduce your monthly expenses with a lower interest rate.
These costs must also be incurred when taking out a new mortgage. Read more about the costs when buying a house and the costs when selling a house.
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Frequently asked questions about transferring your mortgage
Can you always take the same interest rate with you?
No, you cannot always take exactly the same interest rate with you. Banks apply different interest rates for different risk classes. The risk class you fall into depends on the ratio between the market value of the property and the amount you borrow. The lower the mortgage amount in relation to the market value, the lower the risk for the bank. This can result in a more favorable interest rate.
For example, you might pay:
- 3.2% interest for a property with NHG;
- 3.4% interest for a mortgage for less than 60% of the market value;
- 3.6% interest for a mortgage between 60% and 80% of the market value; and
- 3.8% interest for a mortgage between 80% and 100% of the market value.
If you move to a cheaper home, you can often get a lower interest rate. You then fall into a lower risk class. Conversely, if you move to a more expensive home, the interest rate may be higher because you fall into a higher risk class. This may mean you cannot retain the same interest rate as your original mortgage.
The different tiers and interest rates vary per mortgage provider, so inquire with your bank or make an appointment with a mortgage advisor.
Note: if you have a savings mortgage that you would like to take with you to your new home, a higher interest rate might actually be advantageous!
Can you transfer an interest-only mortgage?
In principle, it is possible to transfer an interest-only mortgage to a new home, but you must meet the conditions set by the mortgage provider. For example, at most banks, the interest-only mortgage can be a maximum of 50% of the property's value. This percentage is lower than for an annuity mortgage or linear mortgage.
Other conditions also apply, so inquire with your mortgage provider or make an appointment with a mortgage advisor.
Can you transfer a savings mortgage?
Yes, it is possible to transfer a savings mortgage to your new house. This can be advantageous if you have a favorable interest rate that is fixed for a long time. Transferring your savings mortgage means you remain tied to your current mortgage provider for both the savings mortgage and any other mortgage parts.
Is it cheaper to close your savings mortgage entirely at another bank? Your old bank can then transfer your saved capital (this is called 'continuing seamlessly') to the new bank. This allows you to continue benefiting from the tax advantages of your savings mortgage.
Can you transfer your mortgage after a divorce?
Yes, in many cases, you can transfer a mortgage after a divorce. However, there are some conditions, which vary per mortgage provider. In most cases, you and your ex-partner each own 50% of the house and the mortgage unless otherwise agreed. Sometimes, you are both allowed to transfer a portion of the mortgage, retaining the interest for that part.
Other banks have the rule that one of you may transfer the mortgage to the new home. Who that will be must be established in the settlement agreement or the specification agreement.
You can only transfer the mortgage if the old home is sold. If one of you stays in the home, that person will have to take over the mortgage, retaining the conditions. That person must be able to manage the mortgage alone. You can agree that the other person receives compensation because the other can retain the favorable conditions, but this is not mandatory.