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Unhappy with mortgage - can I change it from interest only to repayment?

Question:

I have a Dutch mortgage which is paying off the interest only, it‘s 50% savings and 50% life insurance. I am concerned that I will not be able to pay off the capital at the end of the term.

Can I change the mortgage to pay off capital now?

Answer:

When you are afraid that you don‘t build up sufficient capital at the end of the term you have some options:

  1. Change the mortgage from interest only to annuity or liniair so that you start paying off the mortgage on a monthly basis. You will need to contact your mortgage provider to discuss the options. 
  2. Standard option in a mortgage contract is that you can pay off up to 10% of the mortgage each year without a fine. You can check your contract whether this option is available for you. Ask your provider how payment can be made.
  3. You can decide to start an additional capital insurance of investment plan. This can also be arranged with another bank.  

It may be good to discuss with your mortgage provider what your options are and what the consequences are for the savingsplan and life insurance and also possible tax consequences. 


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