Fiscally quiet continuation

'Fiscally quiet' means 'without paying fiscally'. 

 

Capital accumulated in endowment insurance (Kapitaalverzekering Eigen Woning, KEW), a home-ownership savings account (Spaarrekening Eigen Woning, SEW) or investment right for property acquisition (Beleggingsrecht Eigen Woning, BEW) can be inserted, fiscally quiet, into a new mortgage. One can take out this new mortgage at the same bank, but this is not required. One could also take it out at another bank. 

An advantage of fiscally quiet continuation is that you will be able to continue your repayment product; consequently you can accumulate capital for mortgage repayment in a fiscally attractive fashion. This sum remains free from taxation in Box 3, whereas you do receive mortgage interest deduction on the entire part of the loan. In comparison with annuity mortgage, this can be a very advantageous choice. 

For fiscally quiet continuation, the following requirements should be met:

• the new deadline is not allowed to be later than the original one;
• the special-purpose capital (= final capital amount) is not allowed to be more than the original special-purpose capital amount of the endowment insurance (savings type) and the home-ownership savings account.

In some cases, the original deadline can be shortened.