You often take out a mortgage for 30 years. The interest rate changes when the fixed-rate period ends. And maybe you apply for a second mortgage if you are going to renovate. Anyway, there are all kinds of adjustments to your mortgage with which you can save money.
Lower mortgage costs
Do you want lower mortgage payments? Then you have a number of options. When your fixed-rate period ends (almost), you can choose a new fixed-rate period at your own bank or at another bank . If the end of your fixed-rate period is not yet in sight, read on for the possibilities to reduce your mortgage payments.
1. Lower mortgage rates at your own bank
There are a number of options for reducing your mortgage payments with your bank. The best option for you, for example, depends on the type of mortgage that you have and how long the interest rate is still fixed. You can best discuss this with an advisor .
With your mortgage provider you can:
Tip: when you take out your mortgage, you are often required to take out a term life insurance policy. But that obligation may expire during the term of your mortgage. Read our cancellation and transfer tips for your term life insurance.
2. Switching from mortgage lender to lower mortgage interest rates
If you are at an expensive bank, it may be advantageous to opt for a lower mortgage rate with another mortgage provider . The interest rate difference between your current and new mortgage must then outweigh the extra costs you incur, such as a penalty interest, as well as notary and advisory costs. If you stay with your current mortgage bank, you have less transfer costs.
Change mortgage
You usually buy a house for a longer period. In the meantime, a lot can happen that makes an adjustment of your mortgage useful or necessary. But also when you are moving or have to deal with a divorce or death (from your partner), it is good to know what is possible and necessary to adjust your mortgage.
What should you look for if you change your mortgage because:
Need mortgage adviser?
When you change your mortgage, the bank often sends you to an intermediary. With some adjustments, this is logical, because they can have major fiscal and financial consequences. But if your fixed-rate period ends and you already know what you want, you make unnecessary costs when you hire an advisor.
Lower mortgage costs
Do you want lower mortgage payments? Then you have a number of options. When your fixed-rate period ends (almost), you can choose a new fixed-rate period at your own bank or at another bank . If the end of your fixed-rate period is not yet in sight, read on for the possibilities to reduce your mortgage payments.
1. Lower mortgage rates at your own bank
There are a number of options for reducing your mortgage payments with your bank. The best option for you, for example, depends on the type of mortgage that you have and how long the interest rate is still fixed. You can best discuss this with an advisor .
With your mortgage provider you can:
- Switch to the current, low interest rate by opening your fixed-rate period. You pay a fine amount for this.
- Interest funds : you also pay a fine for this, but it is 'spread' over the new fixed-rate period. This seems advantageous, but usually other options are more favorable.
- Deposit extra premium if you have a savings mortgage.
- Additional repayments : if your house is worth more or more than your mortgage debt, your mortgage interest can often go down.
- Applying your interest to increased house value or after repayment.
- Still apply for NHG (National Mortgage Guarantee) if your mortgage amount is now lower than € 265,000.
Tip: when you take out your mortgage, you are often required to take out a term life insurance policy. But that obligation may expire during the term of your mortgage. Read our cancellation and transfer tips for your term life insurance.
2. Switching from mortgage lender to lower mortgage interest rates
If you are at an expensive bank, it may be advantageous to opt for a lower mortgage rate with another mortgage provider . The interest rate difference between your current and new mortgage must then outweigh the extra costs you incur, such as a penalty interest, as well as notary and advisory costs. If you stay with your current mortgage bank, you have less transfer costs.
Change mortgage
You usually buy a house for a longer period. In the meantime, a lot can happen that makes an adjustment of your mortgage useful or necessary. But also when you are moving or have to deal with a divorce or death (from your partner), it is good to know what is possible and necessary to adjust your mortgage.
What should you look for if you change your mortgage because:
- your fixed-rate period expires ;
- you are going to renovate ;
- you are moving ;
- you are going to divorce ;
- your partner is dying ;
- your mortgage contract ends (with a mortgage interest-only mortgage).
Need mortgage adviser?
When you change your mortgage, the bank often sends you to an intermediary. With some adjustments, this is logical, because they can have major fiscal and financial consequences. But if your fixed-rate period ends and you already know what you want, you make unnecessary costs when you hire an advisor.
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