We have informed readers of our blog and the news section of the mortgage loan interest over the last 4 weeks. For the time being, this will keep the emotions moving.

For many homeowners – who are planning to transfer their mortgage loan – and starters who are taking out a home loan for the first time, the level of mortgage loan interest can make a big difference.

 

Exciting times for starters

loan

Especially for the starters, exciting times can start in 2018. Higher interest means that they can borrow less money. And borrowing less means automatically settling for a smaller home or another living environment.

After this blog, we take away for a while all speculations about the interest on mortgage loans. Because we’ve written enough about it lately.

 

Experts contradict each other about mortgage loan interest prognosis

Experts contradict each other about mortgage loan interest prognosis

Even experts contradict each other. One expert calls out loud that the interest rate remains stable for a long time, while other economists are almost certain that interest rates may well rise in 2018. And you? And we? We do not know. What we do know is that the Central Bank will continue the purchase program of expensive government bonds in 2018. And that also slows down more slowly than expected.

 

Economist Philip Bokeloh is cautiously optimistic

Economist Philip Bokeloh is cautiously optimistic

Incidentally, Philip Bokeloh, a respected economist with an understanding of the housing market, expects interest rates to rise but many times slower than initially assumed. Mr. Bokeloh works at the ABC Amro and assumes that the interest on government bonds with a term of 10 years rises to 1% in 2018. A low bond rate is always accompanied by a low mortgage loan rate.

 

Interest and loan amount

Interest and loan amount

The level of interest rates is particularly important for starters. Even though the interest rate rises ‘only’ by half a percent, that has direct consequences on the maximum loan amount. If less money can be borrowed because the interest rate rises, the demand for owner-occupied dwellings decreases. This again has consequences for house prices.

 

Few homes for sale in the Randstad

Few homes for sale in the Randstad

In the Randstad, however, there are already far fewer homes available. There was a big run on owner-occupied homes , the sign is now empty. Therefore, more new homes must be built urgently. Even if it was only to keep house prices at a normal level.

 

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