Anyone looking at a home can do a simulation below to find out how much a mortgage loan costs. When you are considering a mortgage loan, you must be aware of a number of things. Below we explain what is important before you take out such a loan.
1. How do I determine my budget?
How high your budget is, when financing your own home, depends on a lot of factors. You can think of:
- the own financial resources that you can use, such as savings,
- your age: the older you are, the harder it will be to take out a long-term mortgage loan,
- your fixed income,
- your work situation now and in the future: do you have a permanent job and how do you expect this to be in a few years’ time?
- your expectation for the future: if you have a child wish or a partner who may want to work less after a while, this may influence the amount of your mortgage,
- what are your monthly fixed costs, and therefore how much money you have left for the payment of the mortgage.
It is not easy to determine how high your budget is if you want to buy a house of your own, but fortunately most financial institutions employ expert advisers who are happy to assist you. They can, of course with the data provided by you, estimate the amount that you could borrow in the form of a mortgage. You can also determine the available budget online, for example by means of a mortgage simulator.
Calculate your monthly mortgage costs
Amount % Interest Period 1 year 2 years 3 years 4 years 5 years 6 years 7 years 8 years 9 years 10 years 11 years 12 years 13 years 14 years 15 years 16 years 17 years 18 years 19 years 20 years 21 years 22 years old 23 years old 24 years 25 years 26 years old 27 years 28 years 29 years 30 years Method Fixed monthly amount Fixed repayment No repayment Reset
|Month||To pay||Capital||Interest||Other amount|
|1||€ 8.79||€ 7.96||€ 0.83||€ 92.04|
|2||€ 8.79||€ 8.02||€ 0.77||€ 84.02|
|3||€ 8.79||€ 8.09||€ 0.70||€ 75.93|
|4||€ 8.79||€ 8.16||€ 0.63||€ 67.77|
|5||€ 8.79||€ 8.23||€ 0.56||€ 59.54|
|6||€ 8.79||€ 8.29||€ 0.50||€ 51.25|
|7||€ 8.79||€ 8.36||€ 0.43||€ 42.89|
|8||€ 8.79||€ 8.43||€ 0.36||€ 34.46|
|9||€ 8.79||€ 8.50||€ 0.29||€ 25.96|
|10||€ 8.79||€ 8.57||€ 0.22||€ 17.39|
|11||€ 8.79||€ 8.65||€ 0.14||€ 8.74|
|12||€ 8.79||€ 8.72||€ 0.07||€ 0.02|
|Total||€ 105.50||€ 100.00||€ 5.50||€ 0.00|
2. When will I be ready to buy a house?
Every person will dream of having their own house at some point. A place of your own that you can decorate and decorate completely to your own taste. The moment you have some savings in mind and you are ready to settle in a certain place for a longer period, then you are probably ready to buy your first home. You no longer want to stay under the wings of your parents, or in a student room, and start building your own life. You can do this on your own, but if you have a relationship, also with your love.
As a rule, people are in the midst of their twenties when they first look for a home of their own. They have then completed their studies and are ready to settle down. Often at this age the time has come to start a family and to have a possible child’s wish come true. Once you have found your dream job, buying your own home does not usually have to be a problem. After all, you have a fixed income with which you can pay off the required mortgage loan.
3. Why buy a house?
Renting a house can sometimes seem cheaper, but in the longer term that is not the case. The monthly costs will be higher in the beginning if you buy a house, but renting a house becomes more expensive every year. For that reason buying a house is much more interesting, especially if you want to live at the same location for a longer period of time. In addition, buyers receive a tax benefit and sometimes other premiums or financial support, which makes investing in a home of their own even more interesting.
Moreover, a property that you have purchased is your property, which means that you have built up assets. Your home can become more valuable in the future so that you can view this investment as a form of investment property, or a financial reserve that you can use in less good times.
An important advantage of buying a property is that you now own the property. This means that you can do what you want with the house. For example, you can do a renovation, build a part and do everything that is permitted according to the building regulations of your place of residence. You are of course also your own landlord and renovations will generally increase the value of your house.
4. Good preparation is half the battle
Buying your own home is not something you often do. For that reason you will probably never really become skilled at it. Before you can sign a purchase agreement, a lot of preparation will have to be preceded. The majority of this preparation will, incidentally, consist of gathering information and gathering the necessary documents and guarantees.
To give you some idea of how a mortgage loan is structured, as a mortgage is officially called, you can perform a so-called simulation on many mortgage lender websites. By entering a number of requested personal and financial details, together with some preferences with regard to the loan that you want to take out, you can receive an overview of the most suitable loan forms. If you have a permanent partner, then his or her details will also have to be entered to complete the financial picture.
The mortgage loans that best suit your personal situation will then automatically appear on your screen or be sent to you by e-mail. By comparing the results of the simulation of those mortgage loans with each other, you can usually make a good assessment of whether it is feasible to take out a mortgage loan, and which type of loan appeals to you most.
5. Check with the CKP for a mortgage loan
The Register of Credits to Individuals (CKP) registers information about all contracts related to consumer loans, such as mortgage loans taken out by a natural person for private purposes, as well as any defaults related to such loans.
The CKP uses this registration as a preventive measure to prevent excessive indebtedness of individuals. The systematic registration of loan agreements and making possible default payments ensure that the legislator can objectively secure information for lenders. When applying for a loan, and therefore also a mortgage, a lender can immediately see which loans you have, how many loans you have and whether you are not a defaulter.
The CKP register keeps all information about loans from and mortgages. The register consists of a positive and a negative component. Each part contains differently registered information, each of which has different retention periods:
- The positive part contains all concluded loan agreements. The information of each loan contract concluded must be passed on to the CKP by a lender within two days so that registration can take place. If the term has expired, the data from this section will also be included in the negative section, unless there is a recording of the loan contract.
- The negative part, also often referred to as the “black list” in the Volkond, is a register of people who have been in arrears with their repayments for a certain period or when no payments have been made at all. The lender must pass on this information to the CKP if the legal conditions are met. The data will then always be recorded in the negative section and will always be stored for no more than 10 years.