Monday, 05 September 2020 12:56 PM

A low mortgage interest rate, that's great. But what about the other conditions?


House prices have been falling for months and the transfer tax has also been reduced for several weeks. An attractive moment to buy a home now. When considering which mortgage is best for you, don't just look at interest rates, they are often easy to compare. Also look at other conditions, because they are usually less clear. A much overlooked condition is the new fixed-rate period when your mortgage expires. For example, you now have a mortgage interest of 5% in mind for a period of ten years. But how much in interest do you pay afterwards? If you are not careful, there is a risk that you will have to pay more interest for the new fixed-rate period than someone who takes out a new mortgage.

A few months before the end of the fixed-rate period, customers usually receive an extension proposal from their lender. These are not always the best rates. Many lenders believe that customers are blindly accepting the new interest rates or that they think that refinancing the mortgage is too much hassle. And then there are the additional costs of refinancing the mortgage. Think of the commission, taking out the old mortgage and registering the new one and of course the appraisal costs.

 


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