The WOZ value of a home is calculated by the municipality. Based on this value it is possible to obtain a WOZ credit. Previously, expensive appraisal reports were used for this type of credit: but with the WOZ value it can also be done much cheaper! A WOZ value is therefore the entrance to a WOZ credit. The municipality regularly determines the WOZ value of an owner-occupied home: this is the value of the home and associated land. The municipality does this to determine municipal taxes and/or real estate taxes. The calculation of the WOZ value is free: unlike a valuation report that is drawn up for an estate agent or lender.
WOZ value lower than market value
The WOZ value is calculated by the municipality: they do not visit all homes, but take a number of homes whose value is known and which are comparable to the home to be appraised. This may mean that the sample homes have not undergone any valuable renovations, while the home to be appraised has. As a result, the WOZ value of the home may be lower. Sometimes it is unfavorable to obtain a WOZ credit : the lower the value, the less WOZ credit will be provided.
WOZ value higher than market value
The reverse is of course also possible: a number of example homes are worth more due to renovations than the home to be appraised, which means that the WOZ value of the home to be appraised may be higher than the actual market value. Very unfavorable for taxes: the homeowner has to pay more tax for this. It is beneficial for obtaining a credit: the WOZ credit will be more than with a lower WOZ value.
Objection to the WOZ value
If the homeowner does not agree with the WOZ value because it is higher or lower than the market value, an objection can be lodged; a new appraisal will then take place. Before the owner does this, he will first have to ask himself whether he wants to take out a WOZ credit. Sometimes it is better to pay a few euros more in tax but still be able to get a higher credit. It is therefore advisable to first look at the WOZ report carefully and discuss whether a WOZ credit will be taken out or not.
When a home is purchased, an appraisal report is drawn up to determine the value of the home. After a number of years, the value of the home has increased in most and most favorable cases: there is then excess value . Based on this surplus value, a new loan can be taken out that can be used for renovations and adjustments within or to the home or plot. Although many people also borrow money for other purposes, lenders expect the loan to be spent on the home. Taking out a loan costs money: a valuation report must be drawn up and the homeowner must go to the notary, which also involves costs.
A WOZ credit saves a lot of costs: no appraisal report, because the municipality produces this free of charge. There is also no notary involved, the WOZ credit can be taken out directly with the bank or lender. The conditions are also less strict; it is not necessary that the borrowed money also be spent on the home. This makes it easier for many people to buy that nice car or go on that nice holiday, buy the furniture they want or throw a big party. For this reason, people are more likely to take out a WOZ loan.
Borrowing money, costs money
As it always goes with loans: borrowing money costs money. Interest will have to be paid on top of the borrowed money. Always consider in advance how the borrowed money will be spent and whether this is a useful investment that provides added value. A WOZ credit may be cheaper, but a WOZ credit also ultimately costs money. If you have any doubts about a WOZ loan, it is therefore better to have a good conversation with the lender. It is also useful to first list all matters yourself.