The mortgage loan is one of the better-known types of loan in the Netherlands. Almost every American person who has bought a house has also taken out a mortgage loan for this. With the mortgage loan, you give the mortgage lender your house as collateral. When you can no longer pay the mortgage loan, the mortgage lender can sell your home.
For lenders, the mortgage loan is one of the safest forms of loan: after all, the house can be sold in the event of default. Because the risk for the lender is relatively low, the interest rate on this loan is also quite low.
Characteristics of the mortgage loan
The mortgage loan is characterized by a long term (usually about 30 years), the fact that you must provide the home as collateral and a (fixed) low interest rate. You can choose to fix the interest for a specific period, but you can also choose to take out a mortgage loan with flexible interest. There are different forms of the mortgage loan, namely: interest-only mortgage, annuity mortgage, investment mortgage, hybrid mortgage, modern life mortgage, linear mortgage and the savings mortgage.
When do I take out a mortgage loan?
You take out a mortgage loan when you want to buy a home. You can finance part of the home with equity capital, but in most cases you also need to use a mortgage. It is only possible to take out a mortgage loan for real estate, for other loan destinations you can use one of the other loan forms.
The mortgage loan has no general maximum. The maximum amount you can borrow depends on several factors, including your current financial situation and income. In addition, lenders also appreciate the contribution of equity capital, which will ultimately also increase the amount of the mortgage loan. By bringing in your own capital, you can therefore increase the maximum mortgage.
How does taking out a mortgage loan work?
First of all, you must choose a bank where you want to take out the mortgage loan. This is followed by a meeting with a mortgage adviser, who will work with you to determine the best financing options for your home. The mortgage adviser will also work with you to determine the maximum loan amount based on your current financial situation.
Types of mortgage loans
Ultimately, the best mortgage type for your financial situation will be chosen, you can choose from an interest-only mortgage, annuity mortgage, investment mortgage, hybrid mortgage, modern life mortgage, linear mortgage or savings mortgage. Of course, various credit assessments will also be performed.