6 Smart ways to use your home equity in the Netherlands
If you have built up some equity on your current home, it might be interesting to use it for something else. Here we will discuss some of the options you have to use it to your advantage. Please take into account that a mortgage provider will not only look at the current value of your home but also at your current income situation to determine the amount.
Bart Kooijman
Mortgage Advisor at OHAO
28 October 2025 · Updated 28 Aug 2026 · 6 min read
Key takeaways
Renovating is the most popular use of equity because it improves comfort and raises the property's value at the same time.
A bridging mortgage lets you buy before you sell — most lenders advance up to 90% of your equity, with the full amount available once the sale completes.
Equity can also fund a second home, a child's apartment, or retirement income through equity release — but not every lender allows each of these, so you may need to switch.
Your home can be more than just the place you live — it can also be a powerful financial tool. As property values rise, many homeowners build up equity without even realizing it. This equity can help you achieve new goals, from renovating your home to investing in a second property or supplementing your retirement income.
Use your home equity to renovate and increase value
Have you been dreaming of a new kitchen or bathroom for years? Or maybe your house feels too small, and you’d like to add a rear extension or dormer to create more space. If you don’t want to dip into your savings, you can use your home equity to increase your mortgage and finance your renovation.
Renovating your home not only improves your comfort but also boosts your property’s value. This makes it one of the most popular and effective ways to put your equity to work. It’s also a great time to review your current mortgage and see what suits your situation best — whether that means increasing your existing mortgage or transferring to a new lender altogether.
Use home equity to buy your next home or bridge two mortgages
If you plan to buy a new home, your equity can help you move up in the housing market. You can even use it to buy a new home before selling your current one by taking out a bridging mortgage.
A bridging mortgage allows a lender to advance you the equity from your current home to finance your next purchase. You repay it once your current house sells. This option is available only when you temporarily own two homes.
For example, suppose your current home is worth €350,000 and your remaining mortgage is €200,000. Your equity is then €145,000 after €5,000 in sales costs. If your maximum mortgage for the new property is €250,000, your total purchasing power becomes higher thanks to your equity.
If you haven’t sold your current home yet, most lenders let you bridge up to 90% of your equity, so in this example that would mean €115,000 extra borrowing capacity. This gives you a total of €365,000 to spend on your next home. Once your home is sold, you can usually access the full equity amount. Just make sure you have enough savings to cover two mortgages temporarily.
Use your home equity to buy a second home or investment property
Would you like to buy a holiday home, an apartment for your child, or perhaps a rental property? Your home equity can help you do that. You can borrow extra money using your current home as collateral, turning your existing property’s value into new opportunities.
Not every lender allows this type of borrowing, so you may need to switch to a different mortgage provider. Still, this can be a smart long-term move if you’re planning to build wealth or diversify your investments.
Use your equity for more financial freedom and personal goals
Your home equity can also help you create more financial space. Maybe you want to buy a new car, take a dream trip, or give your children a financial boost. You can increase your mortgage and borrow based on your equity to make these goals a reality.
Keep in mind that not all mortgage providers offer this option. You might need to transfer your mortgage to another lender who provides more flexibility. At OHAO, we can help you explore which lenders allow this type of borrowing and find the one that fits your goals best.
Turn your home equity into extra income in retirement
If you are retired or approaching retirement, you can also use your home equity to generate extra income. Some lenders offer equity release products that allow you to receive money either as a lump sum or as monthly payments. The interest is paid from the loan itself, which increases your mortgage balance but reduces your remaining equity.
This option can help you supplement your pension and enjoy more financial comfort later in life. More and more mortgage providers are introducing these solutions, making it easier to access your home’s value without selling it.
Make your home equity work for you
Your home equity can open up new opportunities — from improving your current home to supporting your family or enjoying your retirement. The best approach depends on your financial goals, age, and mortgage conditions.
Talk to the OHAO team
Let’s look at your mortgage options
Whether you are just getting started or already taking the next step, we will look at your situation, answer your questions, and clearly explain your Dutch mortgage options.
Bart KooijmanMortgage Advisor
Our happy clients
We focus on delivering great results — and our clients' feedback tells the rest of the story.
