Buying your next house

When you buy a new home, the interest rate at that time may be higher than the interest rate you pay for your current mortgage. In that case, it might be beneficial to transfer your current mortgage to your new home for the remaining fixed interest rate period.

The rules regarding transfering your current mortgage into your new home can differ greatly for each mortgage provider. For example, with some mortgage providers, it's difficult to transfer your current mortgage to your new home when you're buying a newly build home.

Also, mortgage providers have agreed with each other that if a remaining fixedinterest rate period is shorter than 10 years, it will weigh more heavily in a mortgage calculation. This will lower your maximum mortgage. Our mortgage advisors can help with making a well-thought decision on this matter.

The expected market value of your current home may be higher than the remaining mortgage amount. In that case, you’ve made a profit on your house. Profit is very beneficial. You can use the profit to lower the mortgage amount for your new home. This can reduce your monthly mortgage payments and may also lead to a discount on the interest rate.

If you haven’t sold your current home, you might need a bridge loan. A bridge loan is a temporary loan, that is maximized on the profit you expect to be making on your current home. You can use the bridging loan to finance your new home. You’ll pay back the bridge loan once you’ve sold your current home. You’ll pay interest on the bridge loan. The interest on a bridge loan is comparable to the interest rate of a mortgage. Selling your current home after you’ve bought your new home helps you to avoid having to move twice.

Please keep in mind that you’ll be paying for your current mortgage and bridge loan on top of the monthly payments of your new mortgage until you’ve sold your current house. Temporary double mortgage payments can add up considerably if the sale of your current home takes longer than expected. This is also the reason why most mortgage providers have certain requirements when you're applying for a bridge loan. In most cases, they will need proof that you’re able to pay your current mortgage and bridge loan for at least twelve months from savings.

It's possible to sell your current home later, but there are a few factors that should be taken into account. In an introductory call, our mortgage advisors can help you explore the possibilities in your situation.