Can we still expect mortgage rates to fall?
In 2019, real estate rates are at their lowest! It is a good time to make a real estate investment and take out a loan. But will the fall in rates last? How long is it still possible to wait before taking out a loan while taking advantage of an advantageous rate? We explain everything to you!
How are the interest rates for real estate loans set?
Real estate loan interest rates are set based on two factors: the profile of the borrower, and the average real estate rates on the market. In general, banks set their interest rates according to the rate charged by the ECB (European Central Bank) when it lends them money.
Since the end of 2018, the rates charged by the ECB have been particularly low. This is why real estate rates are so advantageous for individuals! It is therefore a good time to borrow if you want to invest in a real estate purchase. Also, rates have reached a plateau, and it would be difficult to see them fall even more! However, you can expect real estate interest rates to stagnate at the end of 2019.
Evolution of the average real estate rate in 2019:
Do a mortgage simulation to find out your interest rate
Another important factor when a bank calculates the interest rate on a home loan for an individual is their borrowing profile! The more you have a profile that inspires confidence in the bank, the lower your interest rate will be.
These criteria are personal and vary from one borrower to another. That's why it's hard to know the exact mortgage rate in advance! To find out more about the real estate interest rates you could qualify for your loan, you can do a Credit simulation real estate online. These mortgage simulation tools are free, and will allow you to know more about the overall cost of your credit according to your profile and banks!
How much can I borrow? Calculate your borrowing capacity
In addition to the interest rate, one of the main characteristics of your loan is obviously its amount! The larger the amount borrowed, the higher the monthly repayments will be. It is therefore important to know your borrowing capacity well before going to see your bank! The answer to the question “how much can I borrow” for a home loan depends in particular on your salary, but also on whether you are making a loan with or without a contribution.
Again, you can use online simulators or calculators to find out how much to borrow with 1500, 2000 or even 3000 euros of salary per month.
Is it possible to take advantage of current rates with an old home loan?
If you took out a mortgage a few years ago, you can renegotiate your credit to take advantage of current rates! You will thus reduce the overall cost of your credit. You can contact your bank to start a renegotiation, or have your credit bought back from a competing organization.
The renegotiation of a credit involves administrative fees, which will be invoiced to you: so be sure that this operation will be profitable for you! If your loan repayment is coming to an end, it may be better to keep your original loan agreement. More information on loan renegotiation hither.
