December 6, 2022

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'Waiting a day before getting a loan can make a difference of €80 a month': is it the right time to buy a house?  |  MyGuide

‘Waiting a day before getting a loan can make a difference of €80 a month’: is it the right time to buy a house? | MyGuide

Spaargids.beAverage interest rates on twenty-year home loans have risen to more than 3% this year. Anyone who plays with the idea of ​​buying a home and therefore wants to obtain a mortgage loan is faced with a dilemma. Do you immediately go to the bank for a home loan or do you continue to be patient, hoping that the interest will drop again soon? Spaargids.be Weigh options.


Written by Gianni D’Angelo, in association with Spaargids.be


Last updated:
07:59


source:
Spaargids.be

Immotheker-Finotheker daily compares 2,000 credit formulas in sixteen banks. For a home loan of €250,000 with a ratio of 81 to 100% and a fixed interest rate over 15, 20 and 25 years, the lowest interest rates are currently 2.22%, 2.41% and 2.59%, respectively. Compared to six months ago, these interest rates are up 0.19 to 0.85%.

Looking for a house for sale? Find out here what home loans are with the lowest fixed interest rates.

do not wait

“It is true that mortgage loans have been on an upward trend for some time now. Waiting a day before taking out a loan, says Christoph Thijs, Director of Communications at CIB Flanders, can make a difference of €80 per month. That’s why we advise buyers Potential not to wait before buying and get a loan in return.


quotes

Nor do we immediately see many reasons to believe that interest rates will fall any time soon. From a historical perspective, interest rates are still at a reasonable level

Christoph Thijs, Director of Communications, CIB Flanders

There are several reasons for this, he says. The rental market is also on an upward trend, which means that the only alternative to buying, especially renting, is not getting cheaper either. Nor do we immediately see many reasons to believe that interest rates will fall any time soon. From a historical perspective, the interest rate remains at a reasonable level. About fifteen years ago, the interest rate settled at 5.25%, although we do not immediately expect to reach that level again. In addition, we have known stability in the Belgian real estate market for many decades.”

“Agreed, Corona, among other things, has caused prices to skyrocket. Fortunately, these massive price increases are gradually becoming a thing of the past. But our property prices are expected to continue to evolve into a “quietly babbling river,” as We’ve known it for years. In particular, annual increases of about 2%. If we expect a drop at all, it could happen in energy-starved homes where topics like renovation obligations, asbestos testing, expensive building materials… can keep prices from going. Far away. But for well-equipped, renovated or energy-efficient homes, the demand will remain high and there will be no decline. We have seen the trend for some time now that homes with good EPC scores are popular and therefore their prices are not dropping.”

Borrowing for Energy Saving Business: Is it better to do it in the bank or in the government?

The big rush is over

Kristophe Thijs points out that, unlike the past few months, the big rush is now over. You could argue that potential buyers could give themselves more time before making a decision, but due to the high interest rates, now is not the time either. The advice is to negotiate aggressively with banks and certainly knock on the doors of many banks, for which there was no permanent time until a few months ago. Historically, interest rates have not been high at all and we expect that the current level may persist for several years. The question is, however, when the ceiling in this area will actually be reached. The ‘Big Deal’ may only be available for those properties that need a great deal of renovation and where buyers are willing to work the plow themselves. In this place, we would likely expect a price drop/stagnation, as buyers have to take renewal costs into account and banks also take EPC into account when granting credit.”

Floating interest rate and review

Anyone who expects or hopes that home interest rates will fall again in the coming years can also choose a variable rate home loan. It is also possible to review your home loan during the term.

Does a variable interest rate provide good protection against more expensive home loans? This is what you need to know about it.



Read also on Spaargids.be:

Inflation and high interest rates: What effect does it have on the number of home loans? How are interest rates evolving?

Attention: Don’t fall into these traps when getting a home loan

“If you ask for nothing, you get nothing”: How do you negotiate a lower interest rate?

This article was brought to you by our partner Spaargids.be.
Spaargids.be is an independent comparison of banking products looking for competitive rates and better interest rates.

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