Residual Debt Financing

Are you considering moving house, but do you still have residual debt? At some banks you can finance your residual debt with so-called residual debt financing, which allows you to take out a higher mortgage. 

For residual debts that have arisen since 01-01-2018, interest deduction is no longer permitted.

If there is an existing residual debt that arose between 28-10-2012 and 31-12-2017 and you have raised your mortgage for this or have taken out a loan, the interest is deductible for a maximum of 15 years.

For claiming the interest deduction, it does not matter whether you redeem or not. And it is also irrelevant how it is borrowed.

If your bank does not offer products for financing residual debt, taking out a personal or an ongoing credit might be a good alternative. To this it also applies that the income must be sufficient to cover the expenses. A family loan can sometimes be attractive for this, both fiscally and financially.