Financing your next home

What does moving home involve?

Moving home combines two things: financing your new property and settling your current home and mortgage. The order in which that happens shapes your financing.

If you sell first and buy afterwards, you know exactly how much surplus value you bring along. If you buy first, that surplus value has not been released yet — and a bridging loan can fill the gap.

Who is this relevant for?

• You want a larger, smaller or simply different home.
• You are moving for work, family reasons or a new stage of life.
• You have surplus value in your current home and want to know how to use it.
• You have found your next home, but your current one has not been sold yet.

What is a bridging loan?

A bridging loan (overbruggingskrediet) is a temporary loan that makes the surplus value of your current home available before that home has actually been sold and transferred. You can use that amount towards the purchase of your new home.

As soon as your current home is transferred at the notary, the bridging loan is repaid in full from the sale proceeds. It is a short-term solution, not a long-term loan.

When do you need one and how does it work?

• You buy your next home before your current home is sold or transferred.
• The lender sets the bridging amount based on the (expected) value or sale price of your current home, minus the outstanding mortgage and selling costs.
• If your home is already sold subject to conditions, a higher bridging amount is usually possible than when it is still on the market.
• During the bridging period you pay interest on the bridging loan, alongside the costs of your old and new mortgage.
• When your old home is transferred, the notary repays the bridging loan automatically.

How this connects to selling your current home

The sale proceeds ultimately determine how much of your own money goes into the new home. If the proceeds are lower than expected, part of the bridging loan remains and has to be solved another way — for example from savings.

That is why we work with a realistic sale value and also consider a scenario in which the sale takes longer than planned.

What should you look out for?

• Double housing costs: calculate how many months you can carry them comfortably.
• The Dutch bijleenregeling: surplus value you do not reinvest can limit your interest deduction.
• Portability: some lenders let you take your current interest rate to the new mortgage.
• The term of the bridging loan and the conditions if it needs to be extended.
• Conditions and deadlines in both purchase agreements.

What are your options?

We compare whether to port your current mortgage, refinance it or combine it with a new part. We also determine whether a bridging loan is needed and which lender's conditions best fit your timing.

How Voorne Hypotheekadvies helps you

I calculate the scenarios for you: buy first, sell first, with and without bridging. You see the monthly costs and risks per scenario, so you can make an offer with confidence.