Financing isn’t just about interest rates and tax deductions — it’s about return, liquidity and flexibility. ING Private Banking actively supports you in assessing the bigger picture and helps you make financing decisions that suit your situation, goals, and long-term vision. In this article, we explore the options available and how to use them strategically.
"}},{"componentType":"sectionTitle","title":"When borrowing pays off – even if you don’t need to"},{"componentType":"paragraph","richBody":{"value":"In the past, a mortgage was a given, especially for high-end properties. Mortgage interest deduction offered tax benefits, while your assets often generated higher returns elsewhere. Today, the rules have changed: interest deduction is limited, the tax landscape is more complex, and for homes above €1,330,000, a higher imputed rental value of 2.35% applies.
Especially for properties in the higher segment, it’s important to assess the net effect of borrowing versus using your own funds (private or business). The key question becomes: what’s the benefit of borrowing? Four factors play a crucial role:
"}},{"componentType":"paragraph","richBody":{"value":"Considering the factors above, there are several ways to finance your home. Will you take out a mortgage (in part), use private funds, and/or tap into business assets? Below we outline the routes and key considerations.
"}},{"componentType":"actionAccordion","actionAccordionList":[{"title":{"value":"Using company assets
"},"icon":{"transformBaseUrl":"https://assets.ing.com/transform/bf1d1f90-5447-4e6a-8ade-4f1e5b6cf824/Products-Business_Finance_Euro_Outline","type":"image","width":32,"altTextNL":"\"\"","original":"https://assets.ing.com/m/344c30e1a0914be3/original/Products-Business_Finance_Euro_Outline.svg","extension":"svg"},"paragraphs":[{"componentType":"paragraph","richBody":{"value":"You can borrow from your own company, pay out dividends, or combine both. Each scenario has its own tax and strategic implications:
Borrowing from your company
Your company acts as the lender. The interest is deductible in box 1, while the company pays corporate tax on the interest income. Note: the loan must meet various criteria to qualify for deduction. Also consider the implications of the Excessive Borrowing Act. If no actual mortgage right is granted on the property to the company, the loan portion above €500,000 may be taxed in box 2 for you as a DGA (for loans entered after 31-12-2022).
For your company, this is an investment: does lending to you yield a comparable return to alternative investments? If so, it’s a smart way to utilise liquidity. Also consider your company’s liquidity planning: are there investment plans, or are you focusing on estate planning or winding down your business?
Dividend payment
You withdraw assets from the company and use them privately. Depending on the box 2 rate (24.5% or 31%), you’ll need to pay out more gross than you need net.
Combination
For example, borrow first, then repay annually via dividend payments within the lower tax bracket.
Using private assets
"},"icon":{"transformBaseUrl":"https://assets.ing.com/transform/b12756dc-dfbc-40fc-b817-97056e47deee/Transactions-Transfer_In_Euro_Outline","type":"image","width":32,"altTextNL":"\"\"","original":"https://assets.ing.com/m/5ef05f9a972160ad/original/Transactions-Transfer_In_Euro_Outline.svg","extension":"svg"},"paragraphs":[{"componentType":"paragraph","richBody":{"value":"If you have assets in box 3, you can use them directly for the property. You won’t pay interest but may miss out on returns. The tax burden in box 3 depends on notional or actual returns.
"}}]},{"title":{"value":"Mortgage from a bank
"},"icon":{"transformBaseUrl":"https://assets.ing.com/transform/967e3f60-3834-41ee-b6a8-f0d54d490765/Savings_goals-Home_Outline","type":"image","width":32,"altTextNL":"\"\"","original":"https://assets.ing.com/m/21a823fe1ca4c141/original/Savings_goals-Home_Outline.svg","extension":"svg"},"paragraphs":[{"componentType":"paragraph","richBody":{"value":"A bank mortgage can be attractive if you’re looking for flexibility. You retain liquidity in your company, leaving room for investments, dividend planning or estate planning — also privately. Bank mortgages are often easier to structure than internal loans.
Return can also be a decisive factor in choosing a mortgage. By allowing your assets to generate returns elsewhere, you may achieve a higher net yield than the mortgage interest costs. Think of investments, real estate, or business ventures.
If the interest exceeds the imputed rental value, there may also be a tax benefit in the form of interest deduction in box 1. For those in the highest income bracket, a deduction cap applies, allowing you to deduct interest in 2025 at a maximum of 37.48%. For homes above €1,330,000, a higher imputed value applies, but even then, a mortgage can be beneficial — especially if you can achieve higher returns elsewhere on the freed-up capital. Naturally, keep an eye on any changes in mortgage deduction regulations.
"}}]}]},{"componentType":"sectionTitle","title":"What suits your situation best?"},{"componentType":"paragraph","richBody":{"value":"The optimal financing method depends on your personal situation, tax position, and your view on return and risk. And that calls for a tailored approach — especially for high-end properties.
At ING Private Banking we look at your complete situation. A mortgage proposal is always bespoke. Jan-Willem Bruel, Director of Housing Private Banking DGA: “We take the time to understand your situation and come up with a proposal that fits your life as an entrepreneur. When we sit down with a client, 90% of the time we present a proposal they agree with.”
Do you want to know what’s most attractive for you? Feel free to contact one of our Private Banking advisors. We’re happy to help you explore a suitable financing strategy — for your home and your wealth.
"}},{"componentType":"cards","cards":[{"componentType":"productCard","cardType":"product","cardSize":"small","title":"The mortgage for DGAs","intro":"Specialists who speak the same language as entrepreneurs: discover what ING Private Banking can do for your housing ambitions.","image":{"transformBaseUrl":"https://assets.ing.com/transform/ba1eb0df-a723-41ff-91ce-5809e94778ba/Large_Web-and-Screen-A-woman-wearing-glasses-checks-her-phone-while-sitting-on-the-couch-at-home-working-on-her-laptop-1","type":"image","width":1920,"original":"https://assets.ing.com/m/5a3493bc0362b4fd/original/Large_Web-and-Screen-A-woman-wearing-glasses-checks-her-phone-while-sitting-on-the-couch-at-home-working-on-her-laptop-1.jpg","extension":"jpg"},"link":{"url":"/en/private-banking/mortgages/the-mortgage-for-dgas"}}]},{"componentType":"sectionTitle","title":"Disclaimer"},{"componentType":"paragraph","richBody":{"value":"The information provided by ING in this article does not constitute an offer, advice or financial service and is intended solely to inform you concretely and provide practical tips. We strongly recommend consulting a specialist at all times regarding your financial and/or wealth planning. This article has been compiled with the utmost care. However, it is possible that the information in this article contains inaccuracies or omissions. ING is not liable for any damage (of any kind) resulting from the use, in any way whatsoever, of the information provided. No rights can be derived from the information provided. Any rates mentioned are indicative and not binding for ING. All rights and changes reserved. This is a publication of ING Bank NV, registered office in Amsterdam.
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