Your first home purchase; for many a thrilling and significant first step towards independence. Before you start decorating, it's important to consider the costs. Perhaps you can't pay for a home all at once. Therefore, discover the possibilities of a mortgage loan. Additionally, you might also be wondering: how much can I borrow? Keep reading to find out more. We will inform you about the ins and outs of a mortgage loan, the differences, and how the amount of your loan is determined!
What is a mortgage loan?
Before delving deeper into the world of a mortgage loan, let us explain what it entails. With a mortgage loan, you make buying a home easier and more accessible. You do this by taking out a loan, usually from a bank. This way, you don't have to pay the full purchase price all at once. You repay this borrowed amount over a certain period. For fifteen, twenty, or thirty years, you pay back a monthly amount to the bank. This is often a fixed amount, but can vary depending on the situation.
Are there differences in loans?
Just like with many other insurances and loans, there are indeed differences between mortgage loans; especially in terms of interest rates. The interest rate is the amount you pay monthly on the borrowed amount. There are differences in the percentage of interest you pay, as well as the variability. When choosing the interest rate, compare especially between different banks. One bank may have a lower percentage, but another bank may offer more favorable benefits. Additionally, there is a difference between a fixed and variable interest rate. With a fixed interest rate, it is slightly higher, but you have more security. With a variable rate, your risk is higher, but the interest rate is lower. So, make comparisons!
How much can I borrow?
Before applying for a mortgage loan, it is important to know how much you can borrow. This way, you know what to expect and have a good idea of which housing sector you can start looking in. The amount of this loan is determined by several factors. They mainly look at your income and existing debts. Before entering into an agreement with a bank for a mortgage loan, you would like to know what to expect. Therefore, have a mortgage loan simulation done. This simulator looks at the purpose of the loan and the resources you already have. Note: there are also differences in searching for a house in Flanders, Brussels, or Wallonia!
Of course, there is much more to consider when taking out a mortgage loan. Therefore, sit down with professionals who are happy to assist you with this major step. Before you know it, you'll be looking for your dream home, and remember: the keyword is comparison!