ABN AMRO introduces Home Equity Mortgages for pensionable-age homeowners

Press release -

ABN AMRO is pleased to announce the immediate introduction of the Home Equity Mortgage (Overwaarde Hypotheek). With this new mortgage product, homeowners who have reached state pension age (under the Dutch Algemene Ouderdomswet, or AOW) can cash out their equity without being forced to sell their homes. Unlike a normal mortgage increase, a Home Equity Mortgage does not mean higher monthly costs: the interest is simply added to the mortgage debt over the lifetime of the mortgage. Clients decide for themselves how they want to use the equity that they have cashed out.

ABN AMRO’s Director of Mortgages Anton Bosch explains, “By the time they retire, many people have already paid off a large part of their mortgages. They often want to know whether they can use the equity they’ve accrued, without having to sell their homes. They might want some extra income after their retirement, for example, or they might want to future-proof their homes or give their children a financial boost. ABN AMRO’s Home Equity Mortgage now offers this possibility to anyone who has reached state pension age. What makes this product so special is that the bank guarantees, on specific terms, that the client won’t be left with a residual debt. The homeowners retain ownership, and can stay living in the home for the rest of their lives. The Home Equity Mortgage doesn’t need to be paid off until the home is sold or the owners pass away.”

Pensionable-age homeowners

Clients can take out a Home Equity Mortgage if all the owners of the home have reached state pension age. It is also possible to take out this new mortgage on top of an existing mortgage – regardless of which lender financed the first mortgage. The Home Equity Mortgage is also available to pensionable-age homeowners who do not have a mortgage. The product gives two options: lump-sum withdrawal or withdrawal in monthly instalments. If the client prefers monthly withdrawals, the maximum duration is 20 years. In either scenario, the homeowner may spend the equity without restriction. To take out a Home Equity Mortgage, clients must go through one of ABN AMRO’s advisors or an independent broker.

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