The housing market in 2026 is in full swing. Many homeowners notice that their home has increased significantly in value, but do not know exactly how to calculate their home equity. Want to know how much financial room you really have? In this article you will discover step by step how to calculate your home's surplus value in 2026 and what to look out for.
We explain what exactly is home equity, what factors play a role, and how you can easily come to an accurate calculation yourself. You will also get practical tips on how to make the best use of your equity. Curious about the possibilities and smart advice for your situation? Read on and discover how to get more out of your home.
What is home equity and why is it important in 2026?
More and more people are wondering how to increase their financial leeway. Calculating home equity is more important than ever in 2026. But what exactly does home equity mean? Simply put, it is the difference between the current market value of your home and the outstanding mortgage debt. According to CBS, home prices increased 7% in 2025 compared to 2024. As a result, many homeowners now have a significantly higher surplus value. Surplus value growth is not only due to rising prices. Paying off your mortgage also plays a big role. Each additional repayment makes your home equity calculation more and more favorable. This gives you more financial freedom, especially now that mortgage rules are becoming stricter and interest rates are higher than in previous years.
Why is home equity so relevant especially in 2026? The housing market is in a state of flux. Banks are setting stricter requirements, and the need for financial flexibility is growing. Surplus value can be a solution in all kinds of situations, such as:
- A renovation or preservation of your home
- Buying your next home
- Supplement to your pension
- Handle unforeseen expenses
Say you want to improve your home or move. Then it might be smart to calculate your home surplus value to discover how much extra spending space you have. But beware: the housing market remains fickle. A drop in value can cause your home equity to shrink. If you use it as a buffer, you'll be stronger in the event of unexpected expenses. Did you know that in 2025 more than 60% of Dutch homeowners will have excess equity? Want to know more about the basis of home equity and why it plays such an important role? Then check out Surplus value on your home for a detailed explanation. In short, in 2026 calculating your home equity is not only smart, but often necessary to secure your financial future.
What factors determine your home's surplus value in 2026?
Calculating home equity always starts with determining the current market value of your home. Location plays a big role here: houses in popular cities or neighborhoods are often worth more. Also the type of house, for example a detached house or apartment, and the state of maintenance count heavily. Has your house been recently refurbished or well maintained? This is reflected in the value. In addition, the amount of your mortgage debt is crucial in calculating home equity. The more you have paid off, the higher your home equity is usually. Do you have a second mortgage or residual debt from a previous home? Include these in your calculation as well. Don't forget that renovations, such as a new kitchen or solar panels, can significantly increase the value of your home.
Developments in the housing market in 2025 and 2026 are also important. In large cities, the average home value rose by as much as 9 percent in 2025. Regional differences are large: in some provinces price increases are even more substantial. The WOZ value gives an indication, but is often lower than the actual market value. According to this article on home value, the average owner-occupied home value rose by €147,000 in five years.
Finally, interest rates and other charges affect the outcome if you want to calculate home equity. Lower interest rates can increase the value of your excess value, while ground rent, VvE contributions and any residual debts have a negative influence. Suppose you invest in a sustainable renovation such as floor insulation: this not only increases your living comfort, but also the market value of your house. So a smart modification can directly increase your surplus value.
Roadmap: How to calculate the equity of your home
Want to know how much financial room you have? With the right roadmap, you can easily calculate your home's surplus value yourself. This will give you quick insight into how much value there is in your home and allow you to make smart choices for the future.
Step 1: Determine the current market value
Start by determining the market value of your home. This can be done through a recent appraisal, a real estate agent's valuation or with online calculation tools. Keep in mind that an official appraisal is the most reliable, especially if you are using the outcome for a mortgage application.
Step 2: Check your remaining mortgage debt
Ask your bank or mortgage lender for the current mortgage overview. Here you will find the amount you still need to repay. Don't forget to include any second mortgages or other loans.
Step 3: Do the math
Now you can calculate home equity by simply subtracting the mortgage debt from the market value. For example, is your home worth €450,000 and your remaining mortgage debt is €300,000? Then the excess value is €150,000.
Step 4: Take into account additional costs
Do you want to withdraw the surplus value, for example for a renovation? Then take into account costs such as advice and notary fees, and possibly penalty interest if you repay early. These costs will be deducted from the amount you can actually withdraw.
Step 5: Check for other debts or garnishments
Always check if there are any other loans, encumbrances or ground leases on the home. This can affect the amount you are left with in home equity calculation.
Step 6: Compare with online tools
Having doubts about your calculation? Then use a reliable online tool, such as the Calculate your own home equity page. That way you'll get a quick indication and you can compare the outcome with your own calculation for extra assurance.
Sample calculation
| Market value home | Remaining mortgage debt | Home-Equity value |
|---|---|---|
| €450.000 | €300.000 | €150.000 |
In this example, calculating home equity is simple: €450,000 (market value) minus €300,000 (mortgage debt) = €150,000 equity.
Common mistakes when calculating home equity
- Only rely on the WOZ value instead of the current market value.
- Forget about additional costs such as consultancy or notary fees.
- Don't include all loans in mortgage debt.
- Results do not compare with an independent online calculation tool.
It is wise to do the home equity calculation every year, especially if the housing market changes. This way you'll always stay on top of your financial options.
Want to make sure you don't overlook anything? Follow this roadmap and use a reliable tool or an independent advisor where necessary. That's how to get the most out of your home in 2026.
Possibilities and concerns when using your capital gain
More and more people want to know what they can do with their excess value. Especially in 2026, there are plenty of opportunities, but also some pitfalls. After calculating home equity, you can choose from several ways to make smart use of your financial space.
Possibilities with your equity
After calculating home equity, you can use this value for:
- Remodel or make your home more sustainable, such as a new kitchen or solar panels.
- Purchase a new home if you want to move on to another home.
- Increase mortgage or take out a second mortgage, for example for energy saving measures.
- Donating to children or supplementing your retirement.
Want to know more about how to apply these options in practice? Then check out Exploit home equity for concrete examples and advice.
Fiscal points of interest
Leveraging your excess value often has tax implications. Think of the eigenwoningreserve and possible tax exemptions. In 2026, the rules around capital gains have become stricter. Below is a brief overview:
| Possibility | Fiscal points of interest |
|---|---|
| Renovation | Interest often deductible |
| New home | Eigenwoningreserve applies |
| Donate | Annual exemption (check 2026) |
| Pension supplement | Beware of tax on withdrawal |
Always check the latest rules to avoid surprises.
Risks and concerns
Withdrawing surplus value seems attractive, but it also has risks:
- Your monthly expenses may increase due to a higher mortgage or second loan.
- Interest rates in 2026 are higher than previous years.
- If your home depreciates in value, a residual debt may arise.
- Additional costs such as advice, notary and possible penalty interest.
It is wise to also carefully weigh the risks after calculating home equity. Therefore, always get advice from an independent specialist.
Practical example: preservation with equity
Suppose a couple has had their home equity value calculation done. They decide to increase the mortgage by €40,000 to make their home more sustainable with insulation and solar panels. The investment reduces their energy costs, but their monthly expenses increase slightly. They discuss the options with an advisor, making an appropriate choice. Do you want to know what your options are after calculating your home equity? At Calculate home equity you can read how to do this and what to look out for.
Importance of independent advice and current trends
1 in 3 home equity withdrawals in 2025 was used for a remodel or preservation project. This shows that many people are using their surplus value to improve their home enjoyment. By making smart use of your options, you can benefit from more financial freedom.
Always hire an independent advisor to avoid overlooking important issues. That way you'll make the most of your excess value without running unnecessary risks.
Frequently asked questions about home equity and calculate 2026
More and more people want to calculate their home equity, especially now that the market is changing rapidly. Below are answers to the most frequently asked questions by homeowners in 2026.
Do I have to pay taxes on withdrawn capital gains?
If you withdraw the capital gain for a renovation or purchase of a new home, you usually do not pay tax on the amount withdrawn. If you use the amount for other purposes, such as gifting, sometimes other tax rules apply. Always check with your advisor.
How often should I recalculate my home equity?
It's smart to repeat the home equity calculation every year, especially when your home has been remodeled or the housing market changes significantly. That way you'll keep up with your financial options.
Can I use my equity without selling my home?
Yes, you can withdraw your excess value through a second mortgage or by increasing your existing mortgage. This way you benefit from your accumulated value without moving immediately.
How does withdrawing home equity affect my monthly expenses?
Withdrawing home equity usually means higher monthly costs, because you borrow more. Therefore, calculate carefully what this means for your budget and future plans.
Is withdrawal of equity possible with an interest-only mortgage?
Even with an interest-only mortgage you can sometimes withdraw equity. Banks look critically at your income and age. So always ask for advice about your situation.
What documents do I need for an application?
| Required document | Why needed |
|---|---|
| Recent appraisal report | Determine current value |
| Mortgage Overview | Insight in residual debt |
| Income information | Testing borrowing capacity |
| WOZ-description | Comparison material |
Can I use excess value for preservation and get a subsidy?
Yes, many people use their surplus value for home improvement or preservation. You then often qualify for subsidies as well. Read more about using excess value for home improvement.
Did you know.
Figures show that in 2025 as many as 55% of all questions to mortgage advisors were about home equity. Want to calculate your home equity and find out what's possible for you? Then contact an independent advisor for personal advice. Now that you know exactly how to calculate your home's surplus value in 2026 and what smart options are available to you, it's time to put some real work into this. Maybe you're thinking about remodeling, lowering your monthly expenses or realizing that long-cherished dream. Whatever your plans, it's important to have your options properly considered and utilized in a way that suits your needs and financial situation. Want to know how best to use your excess value? Find out with personal advice via Surplus value mortgage