Do you want to borrow money for your home? Then it is wise not to wait too long with that, since there is a good chance that the interest on housing loans will increase considerably in the coming period. That is bad news for anyone who wants to buy a home soon, but just as annoying for anyone with a variable loan. If you have the opportunity to do something about it, it is wise to at least look carefully at the options for refinancing, so that you can borrow money cheaper.
Higher interest rates on the way
The higher interest rates are the result of the rise in international long-term interest rates. The banks have to deal with the capital markets in, for example, Europe, in order to get the money that they can lend you to buy a home. It is difficult to predict how great the impact on mortgage interest will be, but the fact is that it will not fall further. Borrowing money for a home will become a bit more expensive in the coming years, making it wise to take action or to take that into account.
Time of cheap mortgage rates is over
According to professor of economics Perry Pappen, the time of cheap mortgages is over anyway. He says that the banks used to charge a lower price for the mortgage, in addition to being able to market other profitable products. Meanwhile, there are international regulations for the banks, which means that they no longer have the option to do this in Belgium either. This means that the banks will have to earn more from the mortgage products, which will raise interest rates in the coming period.
Interest on the savings account
It is also important to take into account that the interest on the savings will not just rise. Borrowing the money becomes more expensive, but on the other hand that does not mean that the savings will yield us more. It is therefore wise to compare the various loans well and always look for the most advantageous option. Compare the maturities and interest rates to make the right choice. Despite the fact that borrowing money becomes more expensive, you can ensure that you can still purchase a nice home or take out a consumer loan.