{"type":"document","data":{"id":"076d6acd-e729-4e00-8076-59c7b8e30dbf","localeString":"en-GB","publishDate":"2026-04-08T16:48:37.444+02:00","contentType":"onecms:productPage","hasMacro":false,"flexPageMetadata":{"afmBanner":false,"robotInstruction":{"noIndex":false,"noFollow":false},"description":"What are the pros and cons of making additional payments on your mortgage? We've laid it all out for you."},"mainHeaderZone":{"componentType":"productHeader","coreHeader":{"body":"Perhaps you're thinking about making an additional repayment on your mortgage but aren’t sure if it fits your situation. What are the benefits? Are there any drawbacks? And do we always charge you for repayments? We’ve laid it all out for you.","headerImage":{"transformBaseUrl":"https://assets.ing.com/transform/d8cebf4f-9298-4b7c-8b18-6b627cfc9717/Young-girl-in-a-tutu-sitting-on-an-antique-sofa","type":"image","width":4032,"original":"https://assets.ing.com/m/71aeea1ffca34c0/original/Young-girl-in-a-tutu-sitting-on-an-antique-sofa.jpg","extension":"jpg"},"title":"The pros and cons of additional repayments on your mortgage"},"backLink":{"textLink":{"url":"/en/personal/mortgage/your-mortgage","text":"Your ING mortgage"}}},"flexZone":{"flexComponents":[{"componentType":"sectionTitle","title":"The pros of additional repayments"},{"componentType":"paragraph","richBody":{"value":"

Reducing your debt is obviously always a good thing to do, but there are more benefits to making additional repayments on your mortgage. Here are the main ones:  
 

  1. Lower monthly payments 

    Less mortgage debt means lower monthly payments, which is always nice. When you pay off part of your mortgage, your total mortgage debt will go down and you will pay less interest. With a mortgage rate of 5%, you save €50 a year on every €1,000 you repay on your mortgage. So if you make an additional repayment of €10,000 on your mortgage, you will save €500 a year. This saving does not take into account the tax relief you get on mortgage interest. Since paying less in interest also means you will have less interest to deduct from your taxable income on your tax return, your net savings will generally be lower.  
     
  2. Lower mortgage rate

    Making additional repayments on your mortgage will bring down your total mortgage debt. And there may be another benefit to having a smaller mortgage debt relative to the value of your home. Perhaps your mortgage includes an interest surcharge or discount. If it does, a higher loan-to-value ratio will also mean a higher surcharge. This also works the other way around, with a lower loan-to-value ratio meaning a lower surcharge or perhaps even a discount on your mortgage rate because the bank is exposed to less risk on the amount lent to you. Since paying off part of your mortgage brings down the loan-to-value ratio, you may be entitled to a lower surcharge or even a discount on your mortgage rate. If the loan-to-value ratio has come down as a result of repayments and your new mortgage debt qualifies you for a lower interest rate according to your product interest rate table, we will automatically change the interest rate as a service to you. Read more about this service here. 

    Good to know: mortgages covered by the Dutch National Mortgage Guarantee never have an interest surcharge or discount. 
  3. You may pay less in capital gains tax

    By making additional repayments, you are dipping into your capital and may, consequently, pay less in capital gains tax in Box 3 of your tax return. 
     
  4. Less chance of residual debt

    Providing the value of your home doesn’t drop, making additional repayments on your mortgage will reduce the chances of being left with residual debt when you sell your home. This will give you peace of mind when you do actually put your house on the market
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Naturally, there are also downsides to making additional repayments on your mortgage. The most important ones are: 
 

  1. You are reducing your financial buffer

    When you pay off part of your mortgage, you’re taking money out of your financial buffer. Check the website of the Dutch National Institute for Family Finance Information (Nibud) to calculate the minimum buffer they recommend you maintain in your situation. ING actually advises you to maintain an even larger buffer - basically one that can cover your living expenses for three to six months. Never use funds you expect to need in the short term to make additional repayments on your mortgage. 
     
  2. You may pay more income tax 

    When you pay off part of your mortgage, you will pay less mortgage interest. This also means that you will have less interest to deduct from your income in Box 1 of your tax return, which increases your taxable income. As a result, you may have to pay more tax in Box 1.  
     
    It could have another adverse effect as well. Higher taxable income may put you in a higher tax bracket. 
     
  3. Your allowances may be reduced

    Making an additional repayment on your mortgage may affect your health insurance allowance and your child care allowance, because these are linked to your taxable income. The higher your taxable income, the lower your allowance. In fact, higher taxable income could see you lose the allowance towards your health insurance premium altogether.  
     
    Therefore, if you currently receive these allowances, make sure you calculate first how they may be affected by an additional repayment on your mortgage. And remember to notify the Dutch Tax Administration in time of any changes affecting your allowance entitlement.
     
  4. Greater impact of the additional loan rule 

    Making additional repayments will reduce your mortgage debt. Providing that the value of your home doesn’t drop, making additional repayments on your mortgage will increase the equity on your home. This means that it will also increase the potential effect of the additional loan rule.
     
  5. Attention!

    If you have an endowment mortgage, bank savings mortgage, tailor-made mortgage or an investment-linked mortgage, making additional repayments may not make good financial sense due to certain tax conditions and other factors. Read more about these types of mortgages and additional repayments.
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Every year, you can pay off an additional 10% of the original mortgage amount without incurring any charges. If you pay off more than that, you will generally have to pay repayment charges. There are, however, certain situations where you are allowed to pay off more than 10% of the original amount borrowed on your mortgage without charge, such as:

Need to brainstorm a bit? We're happy to help if you still have doubts about making extra repayments on your mortgage. Or if you have other questions you'd like to discuss.

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The English text of the website is a translation of the Dutch original version. This translation is intended for the customers convenience only. In case of any discrepancies between the two versions, the original Dutch version shall prevail. The mortgage offer and contract will be signed in Dutch. Also, all further communication after signing the mortgage contract will be in Dutch. You acknowledge and accept this. If any assistance or clarification is needed, we recommend contacting your mortgage advisor or to call our customer service via the ING app.

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