WOZ Credit tax deductible?
Is the interest on a WOZ credit tax deductible?
The “Act on the revision of the tax treatment of owner-occupied homes” came into effect on 1 January. This law may affect a loan purchased for the improvement or renovation of the owner-occupied home, which now benefits from a tax deduction on the interest paid.
Outline of the law with regard to the deductibility of the WOZ Credit (Revolving credit)
- For amounts drawn before January 1, 2013, the interest deduction remains unchanged.
- Amounts withdrawn after January 1, 2013 are subject to the new law and are no longer tax deductible.
- If an existing credit (from before 1-1-2013) is transferred to another credit, the old tax rules remain in effect. Regardless of the new type of credit.
If interest deduction is not used, nothing will change with the introduction of this law.
A Personal Loan is still tax-deductible if it is used for the purchase, improvement or renovation of the owner-occupied home.
Borrow money with a WOZ credit
The WOZ Credit, also known as housing benefit credit, is a form of credit for homeowners and is similar to revolving credit but with a lower interest rate. You can make unlimited withdrawals up to the limit and if you want to make additional repayments on your WOZ credit, you can do so without penalty. The WOZ credit therefore gives you optimal flexibility. The agreed credit limit is the maximum amount that you can withdraw. You can also withdraw additional amounts repaid up to this limit. The WOZ Credit is a loan with a mortgage statement and means that you agree to the condition that you do not burden your house with an additional mortgage, without the permission of the bank where your WOZ Credit is placed. At the request of the bank, you will also cooperate in establishing a mortgage on your home. This is generally only if you are in arrears with payment.
Monthly installment WOZ Credit
The monthly installment of a WOZ credit consists of interest and repayment. The interest is variable so that the part of the repayment can change within your monthly installment. If the interest rate rises, you pay less in repayment on your WOZ credit and if the interest rate falls, you repay more on your WOZ credit. Optionally, you can opt for an interest-only WOZ loan where your monthly installment consists only of interest. You can make extra repayments in whole or in part.
WOZ Credit a suitable loan?
Whether a WOZ Credit is a suitable loan for you depends on your personal and financial situation and the purpose of the loan. More information about a WOZ Credit can be found in the brochures and conditions . Let our expert advisers advise you free of charge. Request a quote without obligation .