What does it cost to withdraw €40,000 in excess value?
Withdrawing €40,000 in surplus value costs on average between €3500 and €5400 in one-time fees. In addition, at an interest rate of 5%, you will pay about €215 gross per month, which is about €148 net per month. Over 30 years, you will pay a total of about €37,200 in interest.
So you will face monthly fees and additional costs, such as for the mortgage advisor, appraisal and notary. Exactly how much you pay depends on your situation: for example, whether you take out a second mortgage or increase your existing mortgage.
Cost summary €40,000 excess value withdrawal
The gross and net monthly payments listed are indicative. Do you choose a shorter term or an interest-only mortgage? Then your monthly expenses and the total interest you pay will change. In many cases, you can deduct part of the additional costs through the mortgage interest deduction.
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Monthly expenses when withdrawing €40,000 in excess value
Do you withdraw €40,000 in excess value via an additional 30-year mortgage with 5% interest? Then you pay an average of €215 gross per month, or €148 net. With an interest-only mortgage, the monthly burden drops to about €167 gross, but you don't pay anything off.
Whether you withdraw the surplus value for renovation, preservation or as a financial buffer: your monthly costs determine whether withdrawing the surplus value suits your financial situation. Those charges depend on the type of mortgage, the interest rate and whether you repay on the amount withdrawn.
Monthly charges at 30-year term and 5% interest rate
With an annuity mortgage, your mortgage debt decreases each month because you are paying off principal and interest. Do you choose an interest-only mortgage? Then the entire surplus value remains as debt and you only pay interest. That makes for lower monthly payments, but also a permanent residual debt.
What if your interest rate is different?
Mortgage interest rates largely determine how much overdraft withdrawal will cost you each month. See:
- 4% interest → €192 gross per month
- 6% interest → €239 gross per month
Low interest rates = lower monthly payments, but often less security. A mortgage advisor considers which option suits your current mortgage, income and future plans. He will also help choose between increasing your existing mortgage or taking out a second mortgage.
What else affects your monthly expenses?
- Your home value and remaining mortgage debt
- Additional mortgage or new mortgage or not
- Whether you choose repayment or interest-only
- Whether you have sufficient income
- The purpose for which you withdraw the surplus value: remodeling, preservation, or as a reserve
Whatever route you choose, keep in mind higher monthly costs, especially with annuity repayments. Get proper advice from a financial advisor or mortgage broker so that withdrawing the surplus value fits your financial space.
One-time cost when withdrawing €40,000 excess value
Withdrawing €40,000 in excess value involves an average one-time cost of €3500 to €5400. This amount depends on your situation and is often paid from your own funds or co-financed through a higher mortgage. You can withdraw the excess value by taking out a second mortgage or increasing your current mortgage.
You incur these costs to officially record the withdrawn surplus value. Among other things, you pay for mortgage advice, appraisal fees, notary fees and closing costs. These expenses are part of arranging a new mortgage deed, whether you are modifying your existing loan or taking out an entirely new loan.
Cost summary €40,000 excess value withdrawal
Some of these additional costs are tax deductible. For example, you can often deduct (partially) the advisory fees and the interest on the new mortgage on your tax return. This provides a tax advantage and lowers the net cost.
Are you unsure if withdrawing the surplus value is right for your situation? Ask for a free mortgage consultation with a mortgage consultant. He will look at your financial situation, test whether you can borrow enough and advise you whether it is better to increase an existing mortgage or take out a second mortgage. That way you can be sure you are making smart choices for now and later.
Is €40,000 excess value withdrawal wise?
Withdrawing €40,000 in excess value is a serious financial move, but it can also pay off handsomely. You can use the excess value to remodel, make your current home more sustainable or finance part of a second home. The higher monthly costs remain relatively manageable, especially with a long term. Still, it remains a loan that you pay back.
Whether it's wise to withdraw surplus value depends on your goal, your income and how your home value has developed in recent years. Below you can see when withdrawing surplus value is often wise and when it is not.
In many cases, withdrawing €40,000 in excess value is a wise choice if you know what you want to use the money for and if you can bear it within your monthly expenses. Whether you choose to take out a second mortgage or increase your existing mortgage, it is important that you have an adequate understanding of your withdrawn surplus value and the impact on your budget.
Are you still unsure if it suits your situation? Then it is smart to get free advice from a mortgage advisor. They will assess your income, the market value of your home and what mortgage amount is justified. This way you can make a choice that suits you and your home.
This article also tells you in detail in what situations withdrawing surplus value is or is not wise.
Cost excess value inclusion in other amounts
Don't want to withdraw exactly €40,000 of excess value, but a different amount? Then it is useful to know what the costs of withdrawing a surplus value are at higher or lower amounts. This will give you a better understanding of what suits your situation, your mortgage amount and your income.
See the monthly fees and additional costs for other amounts of withdrawn surplus value here:
- What does €10,000 excess value withdrawal cost?
- What does €20,000 excess value withdrawal cost?
- What does €30,000 excess value withdrawal cost?
- What does €50,000 excess value withdrawal cost?
- What does €100,000 excess value withdrawal cost?
Unsure how much excess value you can use, or what amount is right for your situation? Then request a free consultation with an independent mortgage advisor. You'll get an understanding of your monthly expenses, your maximum loan amount and types of loans, and all the costs involved in withdrawing the equity.
Here's how to calculate home equity
Withdrawing €40,000 in excess value sounds appealing, but you can only do so if you have enough excess value. Surplus value occurs when your home value exceeds your current mortgage debt. This is often due to rising house prices in recent years.
The calculation is simple:
home value - outstanding mortgage = home surplus value
For example:
Your home is worth €390,000. You still have €350,000 mortgage outstanding.
390,000 - 350,000 = €40,000 excess value
You can withdraw this €40,000 in excess value by increasing your existing mortgage, applying for an additional mortgage or taking out a second mortgage. However, keep in mind that you need sufficient income to finance the withdrawn surplus value. Your financial situation must fit the higher monthly costs that come with it.
Not sure how much excess value you have or what your options are? Learn how to calculate your equity here or schedule a free consultation with a mortgage advisor. Who will see if withdrawing the equity in your home fits your goals.
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