‘Almost two out of five homeowners make extra repayments’ | Money

Also because of the extremely low interest on savings, homeowners choose to use their savings to make extra repayments, according to a study by the advice chain De Hypotheker. More than a quarter of the 2000 respondents indicate that they have repaid more than €20,000 extra on their mortgage on an annual basis.

Lower monthly costs

According to commercial director Menno Luiten of De Hypotheker, extra repayments can be sensible, because this usually leads to lower monthly payments. “But it is important to only pay off if you have savings left and do not want to use this for another purpose in the foreseeable future. Because once you’ve paid off, your money is stuck in stones,” Luiten warns. “It is also important to consider what an extra repayment does to your taxable income, since this will have an effect on the mortgage interest deduction and income tax.”

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