The mortgage loan is one of the better known loan forms in the Netherlands.
Almost every Dutch person who has bought a house has also taken out a mortgage loan for this. With the mortgage loan you give the mortgage lender your house as collateral. When you can no longer pay the mortgage loan, the mortgage lender can sell your house.
For lenders, the mortgage loan is one of the safest forms of lending: finally, the property can be sold in the event of non-payment. Because the risk for the lender is relatively low, the interest rate on this loan is also fairly low.
Characteristics of the mortgage loan
The mortgage loan is characterized by a long duration (usually about 30 years), the fact that you have to give the house as collateral and a (fixed) low interest rate. You have the choice to fix the interest for a certain period, but you can also opt to take out a mortgage loan with flexible interest. There are various forms of the mortgage loan, namely: interest-only mortgage, annuity mortgage, investment mortgage, hybrid mortgage, modern life mortgage, linear mortgage and savings mortgage.
When do I take out a mortgage loan?
You take out a mortgage loan when you want to buy a house. You can finance part of the house with equity, but in most cases you also have to use a mortgage. It is only possible to take out a mortgage loan for real estate, for other loan destinations you can use one of the other loan forms.
The mortgage loan has no general maximum. The maximum amount that you can borrow depends on various factors, including your current financial situation and income. In addition, credit providers also appreciate equity contributions, which will eventually also increase the mortgage loan. By investing your own equity you can therefore increase the maximum mortgage.
How does it take out a mortgage loan?
First you have to choose a bank where you want to take out the mortgage loan. This is followed by a meeting with a mortgage adviser, who will work with you to determine the best financing options for your home. In addition, the mortgage advisor will work with you to determine what the maximum loan amount will be based on your current financial situation.
Types of mortgage loans
Ultimately, the best form of mortgage will be chosen for your financial situation. You can choose between a mortgage-free mortgage, annuity mortgage, investment mortgage, hybrid mortgage, modern mortgage, linear mortgage or savings mortgage. Of course, different credit assessments will also be carried out.