📝 When registering your mortgage at the notary, you have the option to choose an increased mortgage inscription. This can be beneficial if you plan to renovate your property in the future, among other reasons. In this post, we will discuss the advantages and disadvantages of opting for an increased mortgage inscription.
✅ Advantages of an Increased Mortgage Inscription:
🔹 Easy Access to Additional Funds: Having an increased mortgage inscription allows you to borrow extra funds without revisiting the notary if you plan to undertake renovations or make improvements later on. This saves you time, effort, and the cost of going through the process again.
⚡️ Example Scenario:
Let’s say you buy a house for €350,000 and borrow the same amount from the bank. However, you have the notary register €400,000 on the mortgage deed. After a while, you decide to undertake renovations, and now you can borrow an additional €50,000 from the bank. Since the mortgage amount was already registered as €400,000 in the mortgage deed, you don’t need to involve the notary again.
❌ Disadvantages:
There are no inherent disadvantages to opting for an increased mortgage inscription. However, it’s important to note that the bank will still assess your borrowing capacity based on your financial situation. Registering a higher amount does not automatically mean you can borrow that full amount later. Your maximum borrowing capacity is separate from the mortgage inscription.
💰 Additional Costs:
While some notaries may charge extra fees for an increased mortgage inscription, most notaries do not charge additional costs for this service.
💡 Conclusion:
Choosing an increased mortgage inscription offers the advantage of easy access to additional funds for future renovations or improvements without the need to revisit the notary. Remember, your borrowing capacity is determined by the bank based on your financial circumstances, so it’s essential to understand this aspect before making a decision.
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