Several experts are in complete agreement: the historically low-interest rates on mortgage loans are a thing of the past. In recent months, the rates are slowly increasing. For example, the majority of Grisetteen already charges a rate of around 3 percent if you take out a 20-year loan. cream bank, for example, advertises a rate of 3.07 percent. That is 3.2 percent at financial institutions and 3.15 percent at ING.
savings fund is currently publishing the lowest rate of the four large cream banks: 2.77 percent. Those who opt for a variable interest usually receive lower interest. But keep in mind that it can rise when the market interest rate rises.
Nevertheless, the Belgians continue to take out massive housing loans, according to the figures from the Professional Association for Credit. Together we took out 17 percent more home loans for a new project in the quarter of this year than during the same period last year.
A total of no less than 62,000 mortgage loans have been taken out for the purchase or construction of a home. And that for a total amount of 7.7 billion dollars. That is 28 percent more than in the first quarter of 2016. The association also notes that that quarter was the weakest quarter of 2016.
But on average how much do we borrow for a home? According to the figures from the professional association, we borrow an average of 153,000 dollars for the purchase of a new home. If we want to build one, that amount goes up to 159,000 dollars.
We also continue to look for cheaper loans. For example, around 12,000 external refinancings were provided during the first three months of 2017. That is an increase of 34 percent.
Stricter housing loan conditions
Last few weeks there was a lot of uncertainty about the mortgage loans. For example, many consumers fear that they will soon no longer be able to borrow 100 percent of the market value of their home. The National cream bank responded that such loans are still possible, but that stricter capital conditions are required.
To take the uncertainty for granted, Bart Tommelein, Flemish Minister of Finance Bart Tommelein, is working on credit insurance. Such insurance intervenes when a borrower can no longer meet his obligations.
The National cream bank has approved Tommelein’s proposal under certain conditions. For example, the “protection provider” must be accredited and have an external or internal rating. And the insurance may not include clauses that would allow the protection provider to change the contract on its own. Based on those conditions, Tommelein now wants to meet again with the cream bank and insurers.