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Security is a form of guarantee for the repayment of a housing loan to the bank.
The security value of the home used as security for the loan is 75% of the market value of the home.
You may need further security for the remainder of your loan:
- You can purchase OwnGuarantee, for example, for the unsecured portion of your loan (15% at maximum, and 20% of the housing loan in the case of first-home buyers). In addition, you will need your own savings or other security for the remainder.
- You can take out a partial state guarantee for a maximum of 10% of your housing loan, so besides that you will need other security or own funds.
- The price of an OwnGuarantee and a partial state guarantee depends on the amount of the guarantee. When you use your own funds to finance a home, the required additional security is smaller and the expense is lower.
- Additional security may consist of real estate, flats, securities and other assets that can easily be converted into cash. In some cases, a personal guarantee is also possible.
- A free state guarantee is included in an ASP interest-subsidised loan up to 90%, i.e. once you have saved 10% of the price of the home, you will need no other security.
Personal guarantee or pledging another person’s property as additional security:
- You can ask another person to pledge their property, such as their home or holiday home, as additional security for your housing loan (deficiency pledge).
- You can also ask another person to be your guarantor, in which case a personal guarantee (deficiency guarantee) is taken out as additional guarantee for your housing loan.
- The personal guarantee or pledge standing as additional security only covers the part of the debt that the selling price of the borrower’s home cannot cover in full.
In cases where the bank cannot make a security appraisal of the home, the bank will agree with the customer on a separate appraisal and charge the costs for it from the customer.