Can I combine Mortgage and loan or several loans? We are often asked this question … We also call this centralization or the regrouping of credits. The major banks do not do this and therefore often the conclusion is drawn that it is not possible or that this would be at the expense of your tax benefits. A big misconception!
It is certainly possible … but how does it work?
Mortgage and loan, or even several loans, can be merged or centralized. The tax benefit will continue to exist. Of course there is no tax benefit for the part of loans or credit openings that is centralized within the new mortgage.
An example of merging loans from practice
Suppose you have a mortgage with a balance of € 130,000 (the value of the home is € 200,000 *) and you have a number of loans with a total amount of € 50,000. The mortgage and the loans can then be merged and the new mortgage loan is concluded, say, € 190,000.
There will then be a new basic tax certificate of € 130,000. After all, the mortgage was $ 130,000 – and the installment loans that were repaid were – and are – not deductible, and therefore not taxable.
This can, however, greatly reduce the monthly burden because of an installment loan often pays 10.5% interest. With the new mortgage, the interest rate is often less than 2%. In addition, the duration can be extended, so that the costs fall even more.
We have already reduced the monthly costs of hundreds of euros
We have already reduced the monthly costs of hundreds of euros for many of our customers by combining loans. If you have been rejected at your own bank, then let us take a look. With more than 25 years of experience, this is our expertise and we often know how to achieve the seemingly impossible.
Make a request here and let us calculate without obligation what we can do for you and be surprised.