Everyone wants a cheap home loan, but how do you actually get the cheapest loan? In this blog we give some tips to get the lowest interest rate. We talk about the term, insurance and so much more.
Do you choose a variable or fixed interest rate?
Never before have the interest rates for a mortgage been so low. Most interest rates are between 1 and 2 percent. That is why it is interesting that in 2020 you go for a fixed interest rate. This way you can be sure that you will keep the same low interest during the term of your home loan.
A variable interest rate is interesting when the interest rates are again on the high side. There is a real chance that the interest rate will fall again during the term of your loan. With a variable interest rate you can then also benefit from the favorable situation.
Determine the correct duration
In general, the following rule applies: the longer the term of the loan, the higher the interest rate. On the other hand, of course, your monthly payment will be lower the longer your term is.
You should therefore find the right balance between the term of your loan and the interest rate. It basically comes down to what amount of your monthly income you can spend on your home loan.
Take out insurance with the same bank
You are not legally obliged to take out the debt balance and fire insurance with the same bank with which you have your home loan. You are free to arrange the necessary insurance policies elsewhere.
Keep in mind that your bank will not be satisfied with that. As a result, you will receive a less favorable interest rate.
Take out a home loan at the end of the year
Banks must also achieve certain objectives from their headquarters. If they have not yet granted sufficient home loans at the end of the year, they tend to temporarily lower their rates.
Compare the different banks
Comparing pays off. And that is why you will undoubtedly find a cheap home loan with us. Because we work as an intermediary with the most current banks, we have a global overview of all the favorable interest rates and home loans on the market.
Let’s sit together for a person-to-person conversation. Our employees are happy to talk about your current financial situation, your expectations and the opportunities that present themselves.