Mortgage loan

A mortgage loan, in simpler terms, is called a home loan. Do those words ring a bell, but you otherwise have no idea what they mean? Don’t worry, we’re here to explain to you step by step what a mortgage loan is, how to get one and how to pick out the best one. What is a mortgage loan? 
It works like this: you, the borrower, enter into an agreement with the lender. This is usually a bank, which deposits a whole chunk of money into your account after the agreement. You can use it to buy a home, an apartment or a plot of land, or you might be building or renovating a home. But you have to play your part too. Those bricks of yours, they’re real estate, and from now on they’ll serve as collateral for taking out your loan. In plain terms: if you don’t pay off your loan every month, the bank will become the owner of your home. 

How much do these mortgage loans cost?

How much you pay off each month depends on several things, such as the total amount you borrow, your income, the value of your property, your own funds and current loans. It’s a complicated business, but don’t worry: we’ll help you work out how much a mortgage loan for your dream home will cost.

Borrowing money also costs money

That’s right, the interest rate: the interest you pay on the amount borrowed. If we can give you some advice: don’t just pursue the cheapest interest rate. That way, you’d forget about other important costs, such as all manner of expensive insurance policies that come with your loan. Aunty Mortgage’s sage advice.

Fixed or variable interest rate?

In addition to the percentage, you also make choices about the variability of your interest rate. If you choose a fixed interest rate, then you’ll pay a fixed percentage for as long as your loan runs. If you go for a variable interest rate, then there will be interest rates that change every year, but there are also those where your interest rate only changes after 16 years, for example. We’ve listed the pros and cons of both here. Choose wisely, but above all remember that we’re here to help you!


The term

A mortgage loan has a minimum term of ten years and a maximum term of thirty years. The term of your home loan is important, because it determines not only your interest rate, but also your monthly costs. Suppose you borrow 300,000 euros over 20 years, then you’ll pay off about 1,700 euros a month. If you do that over 25 years, you’ll pay about 1,500 a month. By the way: the longer your loan runs, the more you’ll have paid in total at the end. Calculate your specific home loan here.

And then there are the additional costs

When you buy a home and take out a mortgage loan, you pay a lot of additional costs. From notary fees through registration fees to valuation costs: our handy tool will help you calculate a simulation of your home loan.

Insurance all round

 In addition to these extra costs (and of course your home loan itself), you’re also obliged to take out a number of insurance policies. From fire insurance to outstanding balance insurance, you can be sure of saving a lot of money by comparing prices first. To make sure you’re not comparing apples with pears and getting lost in the endless stream of offers, you can come to us.

Legal tax avoidance

The housing bonus was dropped in 2020. But luckily it didn’t stop there, because there are still ways to save on taxes when you buy a home. For example: if you buy a second home, you still benefit from the federal housing bonus. We’ll be glad to explain the other possibilities you have to make it as tax-friendly as possible.

First time?

Are you buying a home for the first time or do you already have some experience? Are you planning to live there yourself, do you want to rent it out or are you going to use it as a holiday destination? Are you buying something at home or abroad? When you take out a home loan, all these questions come with a different story. But we’ve got the answers.


What kind of repayment?

Taking out a mortgage loan where each monthly repayment pays back part of the capital and part of the interest seems like a logical decision at first sight. But when you’re expecting a large sum of money within a few years, for example, it suddenly makes less sense. So here too, you have plenty of options. Do you want to pay off more or rather less in the first few years? You’ll have to make a choice here too.

The best mortgage loan

That mortgage loan will most likely be the most expensive decision of your life. And you can be sure that the first proposal you receive from your bank won’t be the best either. It’s not easy to be sure that you’ve found the right proposal. Comparing with friends and family isn’t a watertight strategy, and sometimes interest rates change completely overnight. And even then, we’re assuming it’s the interest rate alone that defines your home loan. Nothing could be further from the truth, as banks don’t derive their greatest income from that one shiny percentage that everyone focuses on. So where does it come from? The expensive fire and outstanding balance insurance you have to take out to get that low interest rate.

In urgent need turning chaos into order?

It should be clear: finding the best mortgage loan isn’t easy. And then the small print pops up, full of snags. You can find yourself tearing your hair out, because it’s not a fair fight. We at hypotheek.winkel know that too. Our aim? Keeping most of your hair on and assisting you in your search for the right mortgage loan, so you can take it out with certainty and peace of mind.