With both a savings mortgage and a bank savings mortgage, you build up capital to repay your mortgage in the future. It is therefore not the case with both mortgage types that you pay off your mortgage debt monthly, which is the case with some other mortgage types. Yet there are also a few important differences between a bank savings mortgage and a savings mortgage.
Difference in savings mortgage and bank savings mortgage
Although the tax authorities treat a savings mortgage and a bank savings mortgage virtually the same, there are still some differences. For example, you build up assets with a savings mortgage through a linked life insurance policy. This insurance has been placed with the insurance branch of the bank in question. With a bank savings mortgage, on the other hand, you build up the assets in a bank savings account that is simply placed with the bank itself.
The difference between the life insurance policy and the bank savings account is also reflected in the term life insurance policy. A life insurance policy includes a life insurance policy as standard, you pay a fixed premium for that. However, a bank savings mortgage has no standard term life insurance policy. You do have the option to close this separately. You can do this at the bank where the bank savings mortgage is located, but also at another bank or insurer. Because you can combine the bank savings mortgage with the most beneficial term life insurance, a bank savings mortgage is often cheaper than the savings mortgage.
For whom is a (bank) savings mortgage interesting?
Since 2013, you no longer benefit from mortgage interest relief on new (bank) savings mortgages. The Tax and Customs Administration makes the condition that you pay off the mortgage annuously or in a linear way, and that is not the case with these types of mortgages. It is therefore no longer financially interesting to take out a new (bank) savings mortgage.
For homeowners with an existing (bank) savings mortgage, it may be interesting to transfer it, especially in view of the current low interest rates for the mortgage . When you transfer your existing (bank) savings mortgage to a new provider and the conditions do not change, you continue to benefit from the mortgage interest deduction. It does apply that you must have taken out the mortgage for 2013.