You want to buy a house or an apartment or carry out work in your home. The ideal solution is obviously to take out a loan or a mortgage.
Would you like to know how many years it will take you to repay your mortgage?
This is, of course, an important parameter both for your banker who must assess the risk and for you who must determine the final cost of your investment.
Let’s take a look at this fundamental question that will influence your budget for a significant period of your life.
A mortgage? For what purpose?
In general, people assume that taking out a mortgage is only for buying a house or an apartment. On the contrary, with a mortgage, you can finance many other investments such as:
- renovating your house;
- furnishing your house;
- consolidating all your different loans;
- taking out a loan when you are in a difficult situation (self-employed or listed with the BNB).
What are the different possible durations?
You can repay your loan or mortgage over a period of 10 to 30 years. In the past, the duration was generally 15 to 20 years, but with the aging population, banks are increasingly accepting loans that can last up to 30 years.
The principle
When considering the duration of a mortgage, there are two parameters to take into account:
- The risk taken by the lending banker;
- The total amount of interest you will repay.
It is obvious that the longer the duration of your mortgage, the greater the risk of insolvency for your banker, and the higher the amount of interest paid at maturity.
Can the borrower negotiate a reduced interest rate for a longer loan duration?
It is obvious that if you borrow for a period of 30 years, your interest rate will be higher because you are asking your bank to take on additional risk.
However, if your solvency guarantees are solid, your bank may grant you a reduction in the interest rate if you make a motivated request.
Knowing the cost of your mortgage?
We invite you to use our loan simulator to know the different formulas applicable to your next mortgage.
Do not hesitate to contact our brokers. Mrs. Jacqueline LEGRAND is our mortgage specialist for over 20 years. She can find the product that meets your expectations and your budget.
Fixed rate or variable rate?
Currently, and in the long term, specialists and analysts expect interest rates to rise.
We therefore recommend a fixed rate. These rates range from 3 to 4%, which is very low.
Mortgage for seniors
Previously, after the age of 50, you could no longer find a bank willing to grant you a mortgage.
Currently, and due to increased life expectancy, you can still take out a mortgage up to the age of 60 for a period of 15 years.
It will, of course, depend on the amount borrowed and the guarantees offered.
If the loan is co-signed by future heirs, there is no obstacle to the mortgage duration being much longer.
