A home loan usually has to do with real estate.
It is about the repair, purchase or construction of a building, but sometimes also about a boat or plane – we assume that you currently have no plans to buy your own jet or powerboat. Because a residence involves tens or hundreds of thousands of USD, you usually take out a mortgage loan. The lender naturally wants certainty about the repayment and therefore takes the house or apartment as collateral. In this way, the building guarantees that you will keep your periodic repayments neatly. We have listed the cheapest credit providers for you in a table; you can compare them via a simulation of your home loan on their websites.
In recent years, the internet has been busy with dozens of lenders who have en masse. And each of them believes they offer the best conditions and the best prices. Thanks to that fierce competition, this is the right time to take out the cheapest possible mortgage. In addition, the interest rate is also at the lowest level ever. To find the cheapest provider you can perform a simulation of your home loan on the website of the providers. That way you know within a few minutes what a home loan will cost you every month. There are a few details that you must enter, such as the loan amount (depending on what you can / want to pay off each month), type of interest rate (fixed or variable) and the term (spread over 10, 15, 20, 25 or possibly 30 years) .
Interest and borrowing costs
First, look at who has the lowest APR (annual percentage rate); these are the interest and borrowing costs that you pay per year, simply in one percentage. The lower the better of course, but read the conditions – it could be an entry-level promotion. Every money provider is required by law to clearly state which APR is involved. Also check the lender’s license to make sure that the provider is reliable. Every bona fide financial institution receives a permit from the Belgian government. It is important to compare a number of lenders. In this way you get a picture of the various repayments and you can choose a provider that suits you best.
The apparently minimal differences in the APR can save you hundreds of USD per month (or extra costs). Based on a duration of 10 to 30 years, this can amount to tens of thousands of USD at the end of the journey. And if you have already taken out a home loan, then certainly do a simulation of your home loan now that the interest rate is so low. You can easily refuse an old loan by taking out a new mortgage. There are some costs, but it is a matter of sitting down, doing the simulation and calculating whether you can arrange a cheaper loan. So it is valuable to spend time on your comparisons, because it can save you a lot of money in the end. Don’t wait, do it now!