What is a WOZ credit? How can you calculate and apply for a WOZ credit? On Leningen.nl you can read all about this special form of credit for homeowners. With a WOZ loan you temporarily have some extra financial space. But most people use this amount of money for the renovation of a home or for home modifications. The interest on these loans is extra low because you actually benefit from your own home.
What is a credit?
A WOZ credit is a loan that only homeowners can take out. Do you have your own home? Then you can benefit from that. This credit has a number of advantages compared to similar, regular loans. In this way you can take out the WOZ credit at a much more favorable rate than with a regular loan. The bank estimates your risk much lower because you have a owner-occupied home. The (WOZ) value of your house is deposited by the bank against your mortgage loan and the amount you want to borrow. If the WOZ value is higher than the mortgage on the house, you can close this credit.
Benefits of credits
The advantages of this form of credit for homeowners are considerable. If you have your own home, we advise you to first check with the bank whether you are eligible for the loan. If that is the case, you will benefit from a low lending rate and you will not have to pay any valuation costs. That is the case when you increase your current mortgage. You also pay no notary fees. Most banks also do not charge any closing costs. However, not everyone with a home can take out a WOZ credit. You must meet a number of conditions for this. You can read more about this below.
Conditions for taking out a home loan
We also call this credit for homeowners a home loan. You can not just take out a home loan. First of all, you must of course have your own private house. In addition, the WOZ value of the home must always be higher than your mortgage. So you are actually using the surplus value of your home. WOZ loans are usually only provided by banks.
What can you use a cheap loan for?
You apply for this loan form at the bank for the renovation of your home or for a large purchase. That can be a car or something else. Some homeowners also close this loan in order to be able to live a bit more generously. So for extra spending space. With the WOZ credit you get a discount on the interest anyway. This loan is therefore cheaper than a regular loan from the bank. Incidentally, the WOZ loan was usually offered in the form of a revolving credit. However, since you can only deduct the interest paid from the income tax on a personal loan, it is advisable to opt for that loan option.
How much money can you borrow?
If you can only apply for WOZ credit in the form of a revolving credit, you agree a credit limit with the lender. The bank needs a number of data in order to determine the amount of the credit limit. For example, you have to provide information about your income and fixed costs. In addition, the level of this limit partly depends on the WOZ value of your home and the height of the mortgage. If you know the current WOZ value of your home, you can easily calculate your maximum WOZ credit yourself. To calculate this loan, go to your bank’s website. Usually the maximum WOZ credit that you can request is 150% of the current home value minus the height of your mortgage.
You do not have to calculate the WOZ value of your home yourself. Because every year your municipality values the value of the house. The municipality can determine the rates of taxes as a result of the house value, such as the notional rental value and the property tax. They calculate the value by using static data. For example, the municipality will pay attention to the size of your house, any adjustments / improvements that have been made, the year of construction and the size of the plot. We also look at the facilities in the neighborhood and the type / type of home. And finally, the value is partly dependent on the house prices of comparable houses. Municipalities annually value the value of homes. You will automatically receive a message about this every year around January.
What to pay attention to when taking out a home loan?
We advise you to pay particular attention to the type of loan that you take out for your home. If you want to use a WOZ credit for the renovation of your home, it is best to take out a personal loan. With a WOZ personal loan you can deduct the interest you have to pay from the income tax. That is not possible with the revolving credit. However, the interest rate on personal loans is usually slightly higher than the interest on revolving loans. Do you not use the WOZ credit for a conversion of your owner-occupied home? Then you better opt for a WOZ revolving credit.
Always compare WOZ credits!
It is very wise to compare WOZ credits. Compare your WOZ credit with regular credits such as a normal personal loan or revolving credit. It does not happen quickly but sometimes regular loans are cheaper than a WOZ credit. On Leningen.nl you will find a complete overview of credit providers in the Netherlands. Enter some information in our comparison module and indicate that you have your own home. Choose the revolving credit as the form of a loan and we will show you the WOZ credits with the associated interest rates.
Because the ratio between the loan rate and the repayment can change in the case of a WOZ-based loan, you never know in advance when you have repaid the loan. The end date is therefore unclear. With a WOZ personal loan you have much more security and you can deduct the interest from the income tax. At least, if you use the money for a renovation of your home. With the WOZ personal loan you borrow a fixed amount and the term is fixed. You also pay a fixed interest. You fix a fixed monthly installment on a monthly basis. Most WOZ personal loans have a maximum term of ten years (120 months). You do not pay any valuation costs and notary fees.