Tapping into Your Home Equity: What Are Your Options?

By: Erwin Zimmerman, Gileon Duisters & Gijsbert van Lieshout – Zimmerman, Duisters & Van Lieshout Mortgage Advice

In recent years, house prices have risen significantly. For many homeowners, this means that their property is now worth more than the remaining mortgage balance – in other words, home equity. This equity can be very useful, for example to renovate your home, invest in sustainability, support your children financially, or supplement your pension. But how does it work, and what should you keep in mind?

We’ll explain it below.

What is home equity?

Home equity is the difference between the market value of your property and the outstanding mortgage. For example, if your home is currently worth €400,000 and your mortgage balance is €250,000, you have €150,000 in equity.

This equity is tied up in your home, which means you need a financial arrangement to actually access it.

1. Using equity for renovations

Many homeowners use equity to improve their property. Think of an extension, a new kitchen, or energy-saving measures. This can often be done through a mortgage increase or a second mortgage. The advantage is that you invest in your own home, which usually increases its value.

2. Accessing equity to supplement your pension

For homeowners approaching retirement, equity can provide a valuable income supplement. There are special arrangements such as a lifetime mortgage or equity release mortgage, which allow you to receive a lump sum or periodic payments while continuing to live in your home.

3. Helping your children buy their first home

More and more parents use their equity to help their children get on the property ladder. This can be done through a gift or a family loan. The benefit is that your children can buy a home sooner, while you retain control over how the funds are used.

4. Using equity when moving house

If you plan to move – whether to a larger or smaller home – the equity from your current property can be carried over to the new purchase. This often gives you more financial flexibility and can make your move easier.

What to consider

While there are many possibilities, it’s important to carefully assess the consequences:

• Your monthly payments may increase if you raise your mortgage.

• Not all forms of equity withdrawal are tax-deductible.

• Gifts and loans to children must comply with tax rules and exemptions.

That’s why it’s always wise to calculate the impact in advance before making a decision.

Our message to you

Home equity can open up many opportunities, but every situation is unique. The key is to make a choice that fits your future plans. Whether you want to renovate, help your children, or simply create more financial freedom – we’re here to guide you.

👉 Curious about what you can do with your equity? Feel free to contact us, and together we’ll explore your options.

Warm regards,

Erwin Zimmerman, Gileon Duisters & Gijsbert van Lieshout

Zimmerman, Duisters & Van Lieshout Mortgage Advice