Bridging mortgage for movers
You already own a home. And now you want to move on to something bigger, something better, something that fits where you are in life right now. That makes sense, and it is a completely normal step. There is just one practical obstacle between you and that next home: your current house has not been sold yet.
Fortunately, you do not have to wait for that. With a bridge mortgage (overbruggingshypotheek) you can use the equity in your current home right away to buy your new dream house. We arrange that for you, from start to finish.
Book a free advice call More about the bridge mortgage (in Dutch)
What do we arrange for you?
Bridge mortgage
Use the equity in your current home for your new purchase right away, without having to sell first.
New mortgage
We arrange your bridge loan and new mortgage at the same time. One advice conversation, one application, one point of contact.
Tax strategy
Bring in your home equity the smart way, so you make the most of mortgage interest deduction. We calculate it for you.
Bid insurance
Want to make an offer without a financing contingency? With bid insurance you are covered if it unexpectedly does not work out.
What is a bridge mortgage?
A bridge mortgage is a temporary loan that lets you use the equity in your current home right away. You take it out alongside your existing mortgage and pay it off once your current house is sold, usually within 6 to 24 months.
In practice: say your home is worth € 350,000 with a remaining mortgage of € 200,000. That means you have € 150,000 in equity. With a bridge mortgage you can use that amount right away for your new purchase. So you do not have to sell first.
How does a bridge mortgage work with Libero?
We arrange the bridge loan as part of your overall mortgage advice. That way you do not have to deal with several parties at once. Our approach:
- Advice conversation
Together we look at your situation: home equity, income, plans and wishes. Online via video call or at our office in Enschede. - Tailored calculation
We show you how much you can bridge, what your monthly costs will be, and which lender fits you best. - Arranging the new mortgage
We arrange the mortgage for your new home at the same time. One application, not several separate ones. - Application and closing
We coordinate everything with the lender. You sign, we take care of the rest through our digital client portal. - Repayment after the sale
Once your current home is sold, you repay the bridge mortgage in one go. Done.
How much can you bridge? A worked example
Say your current home is worth € 320,000. You still have a mortgage of € 170,000. Your equity is then € 150,000.
Home value: € 320,000
Remaining mortgage: € 170,000
Available equity: € 150,000
Bridge mortgage: up to € 135,000 (lenders typically cover 90-100% of the equity)
Interest (indicative 4% per year): approx. € 2,700 over a 6-month term (gross; may be partly tax deductible)
Monthly cost of the bridge loan: approx. € 450 per month (interest only, no repayment)
You repay the bridge mortgage in one go when your home is sold. So you only pay interest, no repayment.
This is an indicative example. The exact amount and costs depend on your situation and the lender. We calculate it for you, tailored to your case.
Using your home equity for your new home
As a home mover you have probably built up equity (overwaarde) on your current house. Good news, because you can put that equity to smart use. At the same time, you are legally required to bring in that equity when buying your new home if you want to keep your mortgage interest deduction. If you do not, you lose part of the deduction on your new mortgage.
No need to worry, we work this out together. We make sure your equity is used the smart way, so your monthly costs stay as low as possible while you make the most of mortgage interest deduction.
We help you with:
- Bringing in your home equity as own capital (in Dutch)
- Combining it smartly with your new mortgage
- Advice on mortgage interest deduction (in Dutch)
- The tax implications of your situation
Home mover: here are your options
As a home mover you have more choices than a first-time buyer. That also makes things a bit more complex. We have listed the main options for you:
Bringing your mortgage with you
Do you have a favourable rate on your current mortgage? Then it can be smart to bring it with you to your new home. Not every lender allows this, but we know exactly where the possibilities lie.
Advantage: you keep your low rate and pay fewer new closing costs.
Note: not always possible. We check for you whether it really is an advantage in your case.
Taking out a new mortgage
Close your current mortgage when your home is sold and start fresh. This gives you the freedom to choose the mortgage type and rate that suit you now. We compare the market for you.
Advantage: maximum freedom in mortgage type and lender.
Note: possible early repayment penalty. We calculate whether refinancing pays off on balance.
Buy first or sell first?
This is the key question for most home movers. Below we put the two options side by side.
| Buy first | Sell first | |
| Certainty about the new home | Yes, you have already bought | No, you do not yet know what will be available |
| Financial risk | Temporary double costs possible | No double costs |
| Bridge mortgage needed? | Often yes | Not always |
| Time pressure | Your home needs to be sold | You must find a new home within a certain period |
| Suitable for | Buyers who want certainty about their new home | Buyers who want to limit financial risk |
Which choice is best depends on your situation. We help you make that call.
Discuss my situation More about the bridge mortgage (in Dutch)
Bridge mortgage for new-build homes: how does it work?
Buying a new-build home? Then the situation is a little different. Construction can take months. So you need a longer bridging period, sometimes 12 to 24 months. That places different demands on the bridge mortgage.
We know the rules around new-build mortgages well. Together we look at how long the build will take, what that means for the costs, and how to structure the bridge loan as smartly as possible. We also advise you on a construction fund (bouwdepot, an escrow-style account that pays out construction costs in instalments) if you choose a plot with a house still to be built.
New-build at a glance:
- Bridging term of up to 24 months
- Different requirements per lender
- Construction fund possible for plot plus build
- We know the rules per lender
Making an offer without a financing contingency
The housing market is competitive. An offer without a financing contingency makes you a much more attractive buyer. But that is nerve-wracking, especially when you already have two homes in play.
We give you honest advice on when this is a smart move and when it is not. And once you are ready, we arrange bid insurance so you are covered if the financing does not come through after all. That way you can bid with confidence.
Bid insurance at a glance
- Make an offer without a financing contingency
- Covered if the financing does not come through
- Improves your chances in a tight housing market
- We arrange the insurance as part of your mortgage process
Frequently asked questions for home movers and bridge loans
What is the difference between a bridge mortgage and a bridge loan?
A bridge mortgage is a temporary loan secured against the equity in your current home. A bridge loan is a similar loan, but without a mortgage registration. In practice, lenders use the terms interchangeably. Either way, it covers the period between buying and selling. We advise you on which form fits your situation best.
Is the interest on a bridge mortgage tax deductible?
Yes, in most cases the interest on a bridge mortgage is temporarily deductible. The Dutch Tax Authority allows this as long as your current home is for sale and you still live in it yourself. Once you have moved, different rules apply. This depends on your personal situation, so discuss it with us to make sure you do not miss out on any deduction.
How long does a bridge mortgage last?
For an existing home the term is usually 6 to 12 months. For new-build it can run up to 24 months, because construction takes longer. The exact maximum term differs per lender. We look for the lender that fits your timeline.
Can I take out a bridge mortgage if my home is not yet for sale?
That depends on the lender. Some lenders require that your home is actively listed for sale; others are more flexible. In every case you need to be able to show that you intend to sell. We know the conditions per lender and find the best match for your situation.
What does a bridge mortgage cost?
You only pay interest on the bridge amount, no monthly repayment. The interest rate is usually a bit higher than on a regular mortgage, because it is a temporary loan. On top of that there are closing costs and notary fees. We work this out for you so you know exactly where you stand.
Do I have to use my home equity for my new home?
Yes, that is a legal requirement if you want to keep your mortgage interest deduction. Your home equity counts as own capital that you must bring in. If you do not, you lose the right to mortgage interest deduction on the part that matches the equity you did not bring in. We advise you on how to handle this the smart way.
Ready for your next step?
Moving is exciting and a little nerve-wracking at the same time. We make sure the finances do not add to the stress. In a personal advice conversation, online or at our office in Enschede, we discuss your situation and work out exactly what is possible.