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House Sell Annuity

House Sell Annuity

The settlement of the mortgage interest deduction is unsustainable for the future according to experts. To the mortgage debt of homeowners to reduce the Dutch, may be considered to annuity and life span for repayment of capital capital to use the mortgage.

Until 2008 it seemed no maximum credit ceiling. There were high mortgages where the emphasis was on low monthly charges. The lowest month charges were realized by interest only mortgages. A popular form was the investment mortgage second mortgage. In achieving high returns, a part of the result could also be used to partially pay off the repayment mortgage. The expenses were low by the very wide mortgage interest deduction.

Limitation of the mortgage interest deduction

In 2012 there had to be cut sharply to the State budget in order to get again. The conclusion of economists and politicians was that the scheme of the mortgage interest deduction had to be limited. To drastic measures was not possible, what the housing market had already suffered a lot since 2008. The House prices are down more than 15 percent in this period and a strong limitation of the deduction will increase the problems even further. The end of 2012 the VVD came with the proposal to use the extra funds to mortgage a lifecycle to solve. We can also go a step further by the annuity balances to use also to reduce mortgage debt.

Sell home against an annuity

Annuity capital built up useful use

Annuity insurance are concluded with the aim to save for a supplement to the pension. Many workers have in the past participated in the salary savings scheme. Could a monthly amount of up to € 51 per month of the gross wage salary savings be put in a special account. After four years the amount on this escrow account had stood, it could again be paid net amount saved. To achieve additional tax advantage, it was possible to the amount saved in an annuity insurance collapse. This was the paid-up amount also tax-deductible income. Per 1 January 2012 is the as-you-earn scheme stopped and in many cases also the buildup in annuities.

Small annuities

The small annuities are bought off massively in 2012. These are policies which only a limited amount is built up to a maximum of € 4,466 (2012). Given the small size is it allowed to these policies to buy off. The policyholder the insurer may request to terminate the policy and the credit. The premium for this insurance was when paying deductible, this is the benefit taxed. The insurer provides a deduction and then checkout with the tax authorities. It is just a tax. At the annual declaration is the right amount to taxation.

Use with small annuities to pay off mortgage

The small annuities go presumably not in the future be used to supplement the pension agrees. Most workers are no longer willing to invest in these policies. In 2012 have many employees decided to buy these policies to off. By allowing to use the lump-sum payment directly to pay off the mortgage, there are multiple problems at once fixed.

The deductible mortgage interest is reduced, causing less damage to the Treasury is going to rise in the coming years. Policyholders can the policies where they can use anything else useful. The accumulated value in the polis is too low to really here to fill the pension.

House Sell Annuity

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