Mortgages
Borrowing against your home equity to fund an investment property
If you want to borrow against your home equity (overwaarde) for an investment property, a renovation or another investment, I first check what a lender will actually let you borrow based on your income. Then I calculate the monthly payments and the tax consequences. As a mortgage adviser and property investor, I arrange the financing of your own home and the investment property in a single process.
Who it's for
Homeowners with a first investment plan
You want to use your home equity as your own contribution for a first investment property. Many lenders offering a buy-to-let mortgage (verhuurhypotheek) ask for 20% to 30% of your own funds.
Investors looking to expand
You already own one or more properties and want to put the equity in your own home to work again to grow your portfolio.
Owners who want to renovate
You want to borrow extra to renovate your own home or make it more energy-efficient. The interest then remains deductible, subject to conditions.
Home movers
You are selling your home with equity and want to keep part of it aside. I explain what the additional borrowing rule (bijleenregeling) then means for your mortgage interest relief.
Owners aged around 62 and over
You want to free up equity without higher monthly payments. I explain when equity release through a lifetime mortgage (opeethypotheek) is possible.
What I arrange for you
Calculating your equity
Together we determine a realistic value for your home and set it against your outstanding mortgage. The difference is your equity on paper.
Testing your borrowing capacity
I calculate how much you can withdraw based on your income, your debts and the test rate. Having equity is not the same as being able to borrow against it.
Choosing the route
I compare increasing your mortgage with your current bank, remortgaging to another lender and, where suitable, equity release.
Separating box 1 and box 3
I put the loan for your own home (box 1, income from work and your own home) and the loan for an investment (box 3, the Dutch tax on savings and investments) into separate loan parts. That makes it clear which interest is deductible.
Including the investment property
If you use the equity for property, I also arrange the buy-to-let mortgage and guide the purchase. You have one point of contact for both.
What to watch out for
- Box 3 when investing
- If you do not use the withdrawn equity for your own home, the loan falls into box 3 and the interest is not deductible. The debt does count in box 3, however. In 2026, the Dutch Tax Administration (Belastingdienst) uses a provisional deemed rate of 2.70% for debts and a threshold of € 3,800 per person.
- Borrowing interest-only
- For a loan in box 3, repaying on an annuity basis brings no tax advantage. Interest-only gives lower monthly payments, and with 10% penalty-free repayment each year you can still pay off the loan within about ten years.
- Additional borrowing rule
- If you sell a home with equity, you must put that equity into your next home to keep your full mortgage interest relief. If you keep part of it aside, part of the new loan falls into box 3.
- State pension age within ten years
- If you will reach state pension age (AOW) within ten years, the lender also looks at your pension income. That can considerably limit how much equity you can withdraw.
- Costs of withdrawing equity
- Every increase or new mortgage is recorded by a notary. Expect notary fees, valuation fees and advice fees.
- A six-month buffer
- Keep at least six months of fixed costs in reserve, on top of the investment costs. Letting property brings vacancy, maintenance and unexpected costs.
How it works
- 1
Introduction
We discuss what you want to do with the equity and what your situation will look like in five to ten years.
- 2
Value and borrowing capacity
I determine your equity and check how much of it you can withdraw.
- 3
Advice and structure
You receive a proposal setting out the route, the loan parts, the monthly payments and the tax consequences.
- 4
Application and valuation
I apply for the increase or the new mortgage and arrange the valuation.
- 5
Notary and investment
Once the deed has been signed at the notary, the money is available. If you use it for property, I also guide that purchase.
Frequently asked questions
How do I calculate my home equity?
Home equity is the market value of your home minus your outstanding mortgage debt. If your home is worth € 500,000 and you still have a mortgage of € 280,000, your equity is € 220,000. For the value of your home, use a realistic estimate or a valuation. How much of it you can withdraw depends mainly on your income and your existing debts.
Can I use home equity for an investment property?
Yes. You can increase your mortgage or remortgage and use the amount released as your own contribution for an investment property. Many buy-to-let lenders ask for 20% to 30% of your own funds. The extra loan falls into box 3, so the interest is not deductible. The lender assesses your income, your existing debts and the applicable test rate.
How much equity can I withdraw?
That is determined mainly by your income, not by the equity itself. The lender looks at your current and future income, your existing debts and the test rate. Two owners with the same home value and the same equity can therefore get very different outcomes. If you will reach state pension age (AOW) within ten years, your pension income counts as well.
Is the interest on withdrawn equity deductible?
Only if you use the money to buy, improve or maintain your own home and repay the extra amount on an annuity or linear basis within 30 years. If you use the equity for an investment property, a car or another purpose, the loan falls into box 3 and the interest is not deductible. The debt does reduce your assets in box 3.
What is the difference between withdrawing equity and equity release?
When you withdraw equity, you increase your mortgage and the lender assesses your income. With equity release (verzilveren), also known as a lifetime mortgage (opeethypotheek), the lender looks only at the value of the home and the outstanding debt. You take out an amount without your monthly payments going up, and that amount is added to your debt. Equity release is usually only possible from around age 62.
Do I have to stay with my own bank to withdraw equity?
No. Increasing your mortgage with your current lender is the most direct route, but not every bank takes the same view on withdrawing equity. Where one is cautious, another sees opportunities. Remortgaging to another lender can then pay off, if the early repayment penalty and the costs are outweighed by the extra room and the new terms.
Further reading (in Dutch)
Mortgages
Overwaarde benutten: zo maakt u de overwaarde op uw huis vrij
Overwaarde op uw huis benutten? Hoe u het berekent, hoeveel u kunt opnemen, wanneer de rente aftrekbaar is en hoe u er een beleggingspand mee financiert.
6 min read, in Dutch
Property investment
Eerste beleggingspand financieren: eigen geld, rente en rendement
Eerste beleggingspand financieren in 2026: hoeveel eigen geld u nodig heeft, de verhuurhypotheek, 8% overdrachtsbelasting, rendement en box 3.
9 min read, in Dutch
Would you like to know how much equity you can use?
Book a free introductory call. I will check your borrowing capacity and show what withdrawing equity means for your monthly payments and your tax return.