You have found your perfect home, so the time is ripe for applying for a home loan. The Belgian is once again confident about his future, the interest rate has fallen to the lowest level and the housing market has been picking up for a while. Taking out a home loan is not something you just do in between. It takes time and calculations, and then you also have to choose from whom it is best to take out such a loan. With all those providers you can hardly see the forest for the trees. But don’t panic: you can already figure out who is most favorable to you via the internet, simply by performing a home loan simulation on the website of the providers. That way you can make the right decision well prepared.
Before you take the first step, you must decide how much money you can / want to spend on the repayment each month. This depends on your monthly income and your fixed expenses. By subtracting these two figures from each other you know what you have left over each month. Make sure you keep a margin, because you occasionally want to do something fun or, for example, be able to pay for a sudden repair of your car. Then make a rough estimate of the duration. Now you are ready to compare providers online. Once you’ve surfed to their websites, you’ll find a simulation tool there, a kind of calculator that calculates how much your monthly repayment will be. You enter the requested information and after a few minutes you know what you have to pay monthly. As simple as pumping water.
Home loan simulation
Experiment with a home loan simulation with different durations and amounts to see which payment suits you better. Sometimes a slightly higher loan amount at a certain term can ultimately save you a lot of money; this has to do with the various brackets in which the amounts fall. The lender with the lowest APR (annual percentage rate of charge) often offers the cheapest loan; but also read the conditions. Once you have the information, you can decide whether to apply for the loan directly or go to a number of banks to have a chat. Play them against each other. A bank is willing to negotiate, so don’t be embarrassed and go for it. Watch out for by-products that you are offered, such as certain insurance policies that you must have. You can often close it somewhere else cheaper.
Performing a home loan simulation online is therefore a smart move to get a quick picture of the cheapest mortgage. If you had already taken out a home loan – many years ago when the interest rate was significantly higher – a loan simulation can tell you whether it might be a good idea to transfer your old mortgage to a cheaper provider. So log on to your laptop, because who doesn’t want to save hundreds, sometimes even thousands, of euros on their home loan? Everyone right?