The hubby suddenly started talking about how low mortgage interest rates are at the moment and how we might benefit from that. We have this weird mortgage (bankspaarhypotheek) where we keep the debt in full in order to take full advantage of even weirder Dutch tax rules. Yeah, we get a lot of money back from the government. I don’t understand why they stick with the rule…because everybody who takes advantage of this rule is actually screwing the government. Probably some bank lobby dudes who made sure this rule was incorporated…because the banks also benefit from this rule.
Anyway, we looked at changing our mortgage to an annuity with the idea of paying the damn thing off within the next 5 to 10 years. (LOVE!!!)
Our fine with the Tax Man will be around €4.000. (Yes, the government will fine us for not wanting to screw them over anymore!)
We asked the bank to calculate our fine. Yes, we need to pay a fine, because we signed up for our current interest rate till 2020. We got a letter…ouch….€25.000 in total in order to undo this mortgage. Obviously, we have no choice but to stick with the weird mortgage. In 2020 we’ll be able to make another big deposit in the savings part and we’ll bring down the term to 2030. That means we’ll have paid off our mortgage in 20 years instead of 30. Less than 20 years will imply a huge tax fine by the government…yeah, they really really really want us to take advantage of a tax rule that screws them over…and over….and over each year.
P.s. Voor de Nederlanders: let dus op met je bankspaarhypotheek. Daar zit een fiscale klem op en de gevolgen van veranderen zijn echt niet grappig! Wij snappen niet dat de overheid de fiscale klem niet gewoon laat vallen.