The investment account mortgage (investment mortgage)
What is an investment account mortgage? An investment account mortgage - also known as an investment mortgage - consists of a combination of a mortgage loan and an investment account or a securities depository. No repayments will be made during the term of the mortgage. However, an amount is deposited into an investment account every month. At the end of the term, the loan can possibly be repaid with the accrued value in the investment account. In a derivative form, no monthly payments are made, but a (larger) amount is deposited at once when taking out the mortgage. Nowadays, you can choose a large number of investment options within the investment account mortgage: from risk-free to risky. It is often (partly) opted to invest in shares.
Taxation regarding the investment account mortgage: Since the introduction of bank savings , the investment account mortgage offers the option of opting for a bank savings mortgage . With a bank savings mortgage, you can classify the investment account as an owner-occupied home investment account (BEW). This has the advantage that during the term of the mortgage no capital gains tax is due on the accrued capital. On this page, however, we assume the mortgage type in which investments are made in Box 3. This means that the assets accrued in the investment account must be added to the rest of your assets in Box 3. Depending on your total assets, you may have to pay wealth tax on the accrued assets.
Partly because of the higher risks, the mortgage rules have been adjusted from 2013. Since then, the investment account mortgage is no longer allowed for starting buyers. If they choose to do so, they do not have a mortgage interest deduction . Therefore, the investment account mortgage is only of interest to homeowners who bought before 2013.
But the options with the investment account mortgage are also limited for the previous homeowners. They may keep their existing investment account mortgage or transfer it to another mortgage provider. They may also convert their existing mortgage from before 2013 to an investment account mortgage. However, increasing the existing mortgage with an investment account mortgage is no longer allowed. Otherwise, they will also not have a mortgage interest deduction on the increase. In fact, the investment account mortgage can therefore no longer be used for the purchase or renovation of a home.
Advantages of an investment account mortgage:
- lots of freedom in terms of investment options, which means there is a chance of a high return;
- a lot of flexibility if the mortgage is transferred;
- it is usually possible to deposit additional amounts in the meantime or - if the return is higher than expected - to withdraw amounts in the interim;
- for existing mortgages, the interest deduction is maximum throughout the term, making this mortgage type attractive from a tax point of view;
- fewer costs and restrictions than with mortgage types with insurance.
Disadvantages investment account mortgage:
Overview of other mortgage types
- At the moment, this mortgage type is only offered by a few mortgage providers (for new customers);
- investment risk: usually no guaranteed return and / or end capital;
- usually a mark-up is calculated on the standard interest rates. This surcharge is quickly 0.2% with most lenders;
- huge range of investment options that differ in terms of type, investment policy, costs and returns. The various companies are therefore very difficult to compare with each other;
- there is a chance that you will have to pay tax on the accrued capital (box 3). This is at the expense of the return;
- The investment account mortgage is virtually no longer interesting for starting homebuyers from 2013, because the mortgage interest on this mortgage is then not deductible. Financing renovations of existing homes with an investment account mortgage is also no longer interesting from a tax perspective, because the mortgage interest is then also not deductible.