Personal Loan versus Mortgage Loan

  • PERSONAL LOAN
  • loan is income based
  • higher monthly installments due to steeper payback pace
  • payback in ca 5 – 10 years
  • no valuation / mortgage loan advice / notary office costs
  • interest paid can be subject to tax relief
  • MORTGAGE LOAN
  • loan is income & market value based
  • payback mostly in 30 years
  • cost of valuation (or if allowed, desktop / WOZ), mortgage loan advice costs a.o notary office costs
  • lower height of monthly installments
  • interest paid can be subject to tax relief

General considerations – if the loan amount is relative small and you want to pay off the loan a.s.a.p. it could be best to choose for a personal loan. For substantial renovations of large amounts it could be best to choose for a mortgage loan.

If you want us to help in this area please call for a free of charge video call in which we can assess your specific situation.