When you put your property up for sale, you hope to sell it with a substantial profit. However, the reality is that the selling price of your home can also end up below the buying price of your home. You will then incur a loss and will be left with a residual debt. Previously you could easily finance this residual debt with a new mortgage. In addition, the interest on this residual debt financing was tax deductible, so that the extra monthly costs for financing your residual debt were not too bad.
However, from 1 January 2018 the interest deduction for a residual debt financing will be canceled. This makes your net monthly costs a lot more expensive, so that a residual debt loan can be a more attractive alternative than co-financing a residual home debt.
Interest costs 15 years tax deductible
With the so-called residual debt loan from the Astro Finance you are often cheaper than with a mortgage. This is because, among other things, you do not have to pay notary fees and appraisal costs when taking out the loan and because you can benefit from a tax benefit with a residual debt loan. The interest and financing costs are in fact temporarily tax deductible for a maximum of 15 years from box 1 for residual debts that arose before 1 January 2018. Moreover, the term of a loan is much shorter than that of a mortgage.
With a residual debt loan you can only choose a personal loan for 15 years because only then will it be tax deductible. A personal loan gives you security. You know what your monthly payments are and how much interest you have to pay. Be aware that with a residual debt financing you cannot pay extra without penalty. We are happy to tell you more about all the conditions and benefits of a residual debt loan.
Sed credit for your remaining debt
If your residual debt is very high, you can also opt for the Sed credit. You then partly take out a personal loan and partly a revolving credit. Thanks to the risk spread of this loan, you benefit from favorable conditions and a low interest rate.