Anyone who finances a residual debt or refurbishment with a credit may take longer to repay. This can lower the monthly charges for borrowing money.
Lender Good Lender has recently increased the maximum term for the Residential Debt Financing and the Beter Wonen Financing. These loans may now be repaid in a maximum of 180 months (15 years). Previously, the maximum duration was 10 years, as with other lenders. New: a lower term is now also possible when transferring an existing loan.
Lower monthly period
A longer term can lower the monthly loan period. After all, you can take longer to redeem. However, the interest rate is higher. You pay 5.6% for a loan of € 25,000 for the 180-month loan from Good Lender. This is more than the lowest interest rate for a personal loan (120 months) in the market.
Loan next to the mortgage
In various situations it can be interesting to combine consumer credit with a mortgage.
- In the case of a residual debt: if the mortgage is higher than the home value, a residual debt arises when the property is sold. This can stand in the way of the possibilities to move. By financing the residual debt (in part) with a personal loan, your next dream house can be achieved sooner.
- For a renovation: a renovation increases your living pleasure and prevents the value of your home from falling. With costs up to € 25,000 it is advantageous to finance a renovation with a consumer credit. You then pay no extra costs for the valuation and notary. Read more about the financing of a renovation.
The AFM recently warned against combining the mortgage with a loan. However, from a calculation from consulting firm NBG from Good Credit, this sometimes provides to be advantageous.
Many people do not know that, under certain conditions, the loan interest on a residual debt or renovation loan is tax deductible. After all, the personal loan is repaid annuitously (fixed monthly term) and used for the home. The longer term of 15 years also fits within the current tax rules.