Select duration and home loan formula

Which term and formula is the best to take for your home loan? Let us start immediately with the conclusion: there are no truths in this. Everything here depends entirely on your personal situation, but more importantly. Your feeling. What do you want and what do you feel comfortable with?

Where do you stand after 10 years of a home loan?

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Life is changing. Yours too.

You should keep this in mind when choosing the term and formula for your home loan. Your life changes within 10 years after taking out your mortgage loan. This applies to every age category.

We give a few examples:

  • Young couple opts for family expansion
  • You want to do renovation work
  • You get fired or make a career and change employer
  • A couple breaks up and one of them buys out the ex-partner
  • You are single and get to know a new partner
  • Your partner dies and you sell the house
  • You are going to purchase a second home at home or abroad
  • You invest in the purchase of a return property
  • You sell the current home and purchase a larger home
  • Your home has become too big and you want to start living smaller

You notice that there may be sufficient reasons for life to change within the first 10 years after taking out a home loan

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The importance and usefulness of fixed or variable interest rates and short or long terms for a mortgage loan is therefore in a certain sense relative.

The most important thing is that you look at yourself. Where are you within ten years? Does your choice of today still meet your needs? If you can answer this in the affirmative, you are already well on your way to making the right choice for the term and formula of your home loan.

A few more facts about the term and formula of home loans

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Below you will find a few facts and figures about the choice in Belgium about durations and formulas of home loans:

  • From 2003 and up to 2006, formulas with variable interest rates were very popular
  • From 2006 to 2010, fixed interest rates were more popular as a formula for mortgage credit
  • Around 2010 you will see a revival of the variable interest rates
  • From 2011, the formula of the fixed interest rate is again chosen more than the variable interest rate
  • 7 out of 10 Belgians refinance their mortgage loans within the first 10 years after they are taken out
  • Only 1% of the current home loans does not disappear from the lender’s portfolio and the entire term of the mortgage loan remains in that form

What can you conclude from this?

You can deduce a few things from these figures:

  • There is a wave movement to opt for the home loan formula. The one time the variable interest rates, the other time the fixed interest rates are in demand.
  • Many Belgians refinance their current mortgage credit. This has to do with a fall in interest rates, rescheduling of loans, wrong choices, changed circumstances, etc.

Do you have a mortgage loan?

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Do you have a mortgage loan and do you want to have it revised? Contact us without obligation. We put you in touch with a credit broker who will help you further without obligation.