Simulate your mortgage loan refinancing
The European Central Bank is pursuing a consistent policy of lowering interest rates. Today, the cost of money has never been so low.
Did you take out a mortgage loan 5 years ago or more? Do you know that the current market interest rates are probably lower than those you obtained at the time?
A very recent study by Immotheker estimates that one in four Belgians can refinance their mortgage loan and thus save an average of €13,000 per year through this refinancing.
It might be worth considering…
Why is the ECB lowering interest rates?
Since the 2008 crisis and the austerity policies implemented in the Union countries, growth has been sluggish. Europeans are consuming less and saving more. This slowdown in growth and consumption has slowed inflation to the point of causing near deflation (a decrease in prices from one year to the next).
Europeans are saving and consuming less to the point that considerable sums are lying dormant in bank accounts.
One of the means used by the ECB to try to revive the economy is to lower the cost of money to encourage savers to invest in the real economy, that is, to buy shares or bonds of companies or states, or even directly invest in the capital of local businesses.
The consequence is that interbank interest rates are falling, and the interest rates on mortgage loans follow this trend.
Current interest rate levels
Interest rates have never been so low. It must be said that the ECB’s interest rates are negative!
Today, it is possible to find on the market an interest rate of 2.8% on a mortgage loan, depending on the amount to be borrowed.
What is a mortgage loan refinancing?
Refinancing involves obtaining a better mortgage rate, which notably allows you to reduce your monthly payments.
Two possibilities to obtain it: contact the bank that granted this mortgage loan or consult another bank.
Not all mortgage loans are refinancable: the loan term must still be sufficiently long, and the repayment must concern not only the principal but also the interest.
Let’s say the best time to refinance your mortgage loan is probably after 5 years, and the refinancing should cover 80% of the initial value.
CPE Mortgage Loan
Our company has been active in the mortgage loan market since 1996. Our experience allows us to find credit solutions for files or profiles that might sometimes be declined by large traditional banks.
Currently, our interest rate for a mortgage loan is around 3-3.5% fixed over 20 years, which is already a very attractive rate.
Take advantage of the opportunity
You should know that this low-rate situation is not destined to last forever. In fact, no one knows when interest rates will rise again, but it is certain that they will rise soon. Why?
When growth returns to Europe, and consumption picks up, prices will rise again, and consumers will automatically turn to the markets. At that point, banks will have an interest in raising their rates to retain their customers. The mortgage loan rate will naturally follow.
That’s why you should take advantage of it while it’s still possible and consider refinancing your mortgage loan.
Getting informed costs nothing…Get in contact
Call our mortgage service and ask to speak to Ms. Jacqueline Legrand.
We study your file for free and see with you if your mortgage loan is refinancable.
If so, you could make a very good deal and save up to €10,000 per year!