The interest in buying a home remains high. The demand for suitable real estate is huge. Even without falling interest rates, house prices continue to rise. Logical too, because even now the mortgage interest rate has risen slightly in recent months, the interest rate remains historically low. Moreover, the banks are prepared to accept very low margins on their home loans in order to retain customers for a long time, which means that they ultimately offer much lower rates. So it pays to work on your mortgage now.
Are you looking for a new home because your personal situation has changed? Or do you rather view it as an investment? In most cases you will have to borrow (a part of) this. The amount that you can borrow naturally depends on your repayment capacity, the equity you want to invest and the value of the property. Once you have mapped yourself, you can start looking for the best provider.
You start best online. Just about every financial service provider has its own website with a home loan simulator today. A credit simulator is a handy calculator that makes it easy to see a complete overview of your options. By bundling all the provisions of the credits, this calculator knows exactly what type of credit you are looking for based on the data you have entered. In addition, it also shows how much credit you can request and what the monthly charges are.
However, remember that when you become the owner of a property, you also have to take into account notary fees, architect fees, registration fees, and so on. Remember this when preparing your repayment plan.
Also watch out for so-called discount rates. A preferential rate is a discount compared to the basic rate (the basic rate). However, this discount depends on a number of conditions. For example, taking out a credit balance insurance with the lender. Or the direct debit of income on a current account at the bank. Or taking out fire insurance with a certain company through the credit company in question. The question is whether such an advantageous rate is cheaper for you?
It is therefore important to compare apples with apples. But how do you do that? The percentage that you want to borrow from the purchase price of the property and your monthly net (family) income are, of course, largely fixed. You can get started with interest rates and durations. However, do not limit yourself to these two variables.
It is therefore advisable to compare all conditions and the so-called by – products separately. File costs, debt balance insurance, fire insurance…
As mentioned, the easiest way to start the comparison exercise is online. Do some simulations and compare the APRs (Annual Cost Percentage) purely on the loan, not including insurance, for example. It is best to make a separate comparison exercise for each by-product. Then you add up all the costs and you get the cheapest loan. Or not yet?
If you do nothing, you will get the interest rate that society proposes. If, on the other hand, you are prepared to put pressure on the lender, you can get away with a better rate.
Start your loan application here!