Everyone of course! A loan for your home is not just about the purchase. For example, it can also be about repairing it, and that is especially nice if you have an old (er) house. For these types of projects, the figures can also increase considerably. It is therefore an advantage if you can borrow the largest possible amount at the lowest possible monthly installment. But let’s start from the beginning. That is the home loan or the mortgage loan.
Take out a loan
You bought a house 15 years ago with a mortgage of 100,000 USD. You took out the loan in a period that the interest rate was significantly higher. Up to now, 80,000 USD have been paid off, but now the house needs repairs, or you want to add a piece, for example. Did you know that you can re-use your existing (non-expired) mortgage for those changes or renovations? You don’t have to pay a mortgage or notary fees, and that saves a lot of money. If the house is older than 10 years and not rented out, you can rebuild at a favorable VAT rate. Because most home loans provide a tax benefit, you do not lose this benefit with a new loan. The credit is still ongoing.
Home loan interest rates
The new home loan will be taken out at the current interest rates and your current credit (usually at a higher interest rate) has no impact on that. You can also switch from a financial institution to repay your home loan and transfer your credit at a lower interest rate. So there are all kinds of ways to reduce your costs. With so many banks and institutions, it’s a good idea to do your homework by comparing them. We are usually familiar with the bank where we have been banking for years, but you certainly have to compare several institutions and play against each other. A bank may indicate a basic interest rate to the outside world, but in practice there is room for negotiation with you. So be smart and use it.
For a quick and easy overview to get a good idea of rates, go to the websites of the providers, especially those with the lowest APR (annual percentage rate). There you will find a simulator tool where you can enter some data. The simulator lets you know very quickly whether you are eligible for the mortgage loan and what your monthly payment will be. Check every provider for a license (issued by the Belgian government), always read the conditions carefully and ensure that the low APR is not an entry campaign that ends next month.
You can also go to a financial consultancy to get information there. Armed with as much information as possible, you can then start negotiating with the various credit providers. Don’t be afraid to return a few times to a financial institution to get the most out of it. The kick-off is up to you to score the best possible home loan.