These are golden times for homebuyers when it comes to interest rates. They can lock in their monthly payments for a long period at a very low mortgage rate. Homeowners whose fixed-rate period is expiring soon can also benefit from the low interest rates. Even if the fixed-rate period still has years to run, you can still cash in by breaking open the current interest rate contract. You'll pay a penalty, but you'll likely recoup this investment quickly. Many banks even offer an additional discount on your interest rate if you have a good energy rating !
What is the expectation in 2022?
Opinions are divided on this, but on average, economists expect mortgage rates to rise further. For fixed-rate periods of ten years or longer, the expectation is that they will rise by a few tenths of a percent. The combination of "rising house prices" and "rising mortgage rates" is not good news for first-time buyers. If you want to know the maintenance costs associated with your dream home, in addition to your monthly payments, we recommend having a building inspection report drawn up.
What can you do as a homeowner to combat rising mortgage interest rates?
The consequences for you depend on the remaining term of your fixed-rate mortgage. Do you have to make a new decision in 2022? If your mortgage is still fixed for a few years, there are still ways to take advantage of the low interest rates. The lender will charge you a penalty, but you can immediately fix your mortgage interest rate for a longer period after breaking the mortgage. Talking to an advisor is always a good idea!
Potential buyers should not delay purchasing for too long
Still hesitant about buying a house? Don't wait until mortgage rates rise sharply, because rising interest rates and rising house prices could make the pickings even thinner. Houses within your budget are becoming increasingly scarce.
Preferably choose a longer fixed interest rate period
A further increase is expected in 2022, and interest rates could continue to rise in the years that follow. Keep this in mind when choosing a new fixed-interest rate period. Increases may remain limited in the coming years, but you can't be sure. With a longer fixed-interest rate period, you're choosing security and stability.
The cost of an energy label (up to 190 m²) is only €349 including VAT. A certified energy advisor will visit you, inspect the property, and officially register the energy label in EP-online. If the property is larger than 190 m², we charge €0.65 per additional square meter. Do you have any questions? We're happy to help and, if desired, can schedule an appointment with a certified advisor right away!
