In the first place, it is the interest rate that determines how expensive or cheap our home loan will be. The average interest rate of a mortgage loan currently varies between four and five percent, depending on the evolution in the financial market.
The most advantageous interest rate
When taking out a cheap loan for a house, we can choose between a fixed and a variable interest rate. Which option we ultimately choose depends on the situation on the financial market when we want to take out our loan. A variable interest rate is usually adjusted every five years to the then prevailing interest rates. A fixed interest rate always remains unchanged. What is ultimately for the most advantageous interest rate for us, we must examine before taking out our mortgage credit.
Expensive debt balance insurance
Even though this is not required by law, most lenders combine a home loan with a debt balance insurance. This debt balance insurance offers the lender greater certainty. We can pay this extra insurance in one go or in installments. Debt balance insurance also determines an expensive or cheap mortgage loan. One bank offers future builders much cheaper debt balance insurance than the other. Banks and lenders naturally want to limit their risk as much as possible. Many people also require applicants for a home loan to open a current account into which their wages are deposited. Keep in mind that opening a current account also costs money.
Extra discount for mortgage credit
We can in many cases take out a cheaper mortgage loan than lenders announce. We can certainly enforce a customer discount at our trusted bank, certainly if we already have a current account there for a long time with which we make the majority of our payments.
Own financial contribution
If the amount that we want to borrow is lower than the sum that we really need, there is also a discount. The lower the percentage, the greater the discount. The banks have more certainty about our repayment options as the price of the property exceeds the outstanding amount of our mortgage credit. With a home loan of 100 percent you borrow the full amount and also pay the notary fees. A mortgage credit of 80 percent is the most common limit where you get a discount. You pay the remaining 20 percent yourself, together with the notary fees. The lower the percentage compared to the total purchase price of your home, the better the conditions you get.
Banks and other lenders naturally aim for the largest possible mortgage credit. The larger the loan that we take out, the greater the profit they earn. Determine in advance the amount that you really need, and stick to it under all circumstances. Financial experts assume that one third of our total income is the absolute maximum that we can spend on a mortgage loan