Increasing your mortgage to withdraw home equity

It is quite possible that the value of your home exceeds the mortgage you have. In that case there is an excess value. With this excess value you can do all kinds of things, such as renovate your home, but also buy a car, for example. On this page we tell you all the important information about withdrawing the excess value of your home.

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Toni van der Flier

Mortgage Advisor

Releasing home equity

We understand you're curious how it works to withdraw your home equity

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What is excess value?

Excess value occurs when the value of your home exceeds the amount of your current mortgage. The two main reasons for the creation of excess value are rising market values and paying off your mortgage. Often it is a combination of the two. Excess value can be seen as equity. However, the money is not immediately available to you. It's in the bricks. There are ways to withdraw your equity by increasing your current mortgage. Of course, the excess value would also be released if you were to sell your home. 

It is also possible that your home is worth less than the amount of your current mortgage. In that case you speak of a negative equity. This is also called a residual debt. If you were to sell your home at that time, you would be left with a debt.

Using your excess value

It is important to have a clear picture in advance of what you might want to use the excess value for. If you want to use the excess value to renovate or make your home more sustainable, you can use a construction deposit. This will be a new loan part on top of your existing mortgage. You pay today's interest on this new loan part. The mortgage interest on a construction loan is tax deductible. Here you can find more information about increasing your mortgage for a renovation. 

It is also possible to take the surplus value for something else. For example, to buy a car, a second home and so on. In that case we speak of a consumer credit mortgage. This means that the excess value is not used to purchase or improve the property. The mortgage interest you pay on this type of mortgage is not tax deductible. Also, it is not possible to take out such a mortage mortgage with every mortgage provider. In an introductory call we can discuss the possibilities in your situation.

Refinancing your mortgage and switching to another mortgage provider

If you plan to withdraw the excess value on your home, you may want to look at increasing your existing mortgage. In addition, you can also look at the benefits of refinancing your mortgage and include the increase in that. 

Over the years, your needs may have changed. It is also possible that your existing mortgage is no longer entirely appropriate. This could be a reason not to increase your mortgage, but to transfer it to a new bank. In addition, it is also possible that you may be offered a lower mortgage rate at another bank and thus be more financially advantageous.

In an advisory call we will compare the two options. Together we will look at an option that appeals to you the most.

Increase or refinance your mortgage in five steps

In these five steps we explain how leveraging your excess value works.

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Considering your options


An advisory call


Applying for the mortgage


Signing the offer


Mortgage settled!


Here are the questions customers ask us most often. Is your question not listed here? Feel free to contact us. We will be happy to help you!

What fees should I take into acount?

What interest rate should I consider?

Can I take out an interest-only mortgage?