End mortgage loans? You absolutely must first know this
On this page you can get comprehensive information about the annuity mortgage loan. Important information about this form of mortgage loan can not be missed. With this mortgage loan loan you pay a fixed monthly amount. That sum consists of a part repayment and a part interest. We also call these two amounts the ‘annuity’.
Below you can read about what an annuity mortgage loan is, how it works, what the advantages are of this home loan and the disadvantages. Finally, we give you a few useful tips here and there where you have something to do!
What is an annuity mortgage loan?
The annuity mortgage loan is known as a very safe mortgage loan. Since 2013, home owners and prospective buyers are only allowed to take out mortgage loans that are repaid on a straight-line basis or according to an annuity. Annuities mortgage loans have a fixed end date.
Unlike mortgage loan-only mortgage loans , these mortgage loan loans are repaid during the term. You pay the same amount to the bank each month.
We call that the monthly installments. A part of interest and repayment is processed during those monthly installments. Incidentally, an important feature of this type of mortgage loan is that people pay more interest than redemption at the beginning of the term. The ratios between interest and repayments gradually shift as the maturity progresses.
Low monthly allowances in the first years with mortgage loan interest relief
Close anonymous mortgage loan? With this mortgage loan loan you have little costs at the beginning of the term. Because you mainly have to pay a lot of interest during the first years and do not pay much, you can fully benefit from the mortgage loan interest deduction .
You do, however, pay off a small amount every month. You can imagine that you will therefore pay less and less interest because the loan amount becomes smaller. As the term progresses, the costs / expenses per month will increase.
Advantages of the annuity mortgage loan
This mortgage loan form was and still is immensely popular. As of 2013, many risky types of mortgage loans have been banned. Home buyers can only choose between the annuity home loan or the linear mortgage loan as a mortgage loan.
Variants are available in this, however. So in that sense you still have sufficient choice. But characteristic of all these types of mortgage loan is that you pay off the loan during the term and not only on the end date or afterwards. What are the benefits of annuity mortgage loans? The advantages of this loan form are as follows:
- You have low monthly payments at the start of the term. You can then take full advantage of the mortgage loan interest deduction since you pay most interest in the beginning.
- Clarity and reliability are two key concepts that fit this mortgage loan loan. Your monthly amounts are fixed. Your gross mortgage loan costs remain the same during the term!
- In addition, the annuity mortgage loan is also cheap. A cheap mortgage loan is because the entire interest charge is relatively low over the entire term. However, the tax possibilities decrease as the maturity progresses.
Relaying on the basis of annuities also has disadvantages
Borrowing money for a home also has disadvantages. Not only does it always cost you money, but you will only fully own a property once you have repaid the mortgage loan sum. Until then, the bank is in principle co-owner. A mortgage loan where you pay off an annuity every month has the following disadvantages:
1. Your monthly costs will increase as the term progresses. We speak in this case about the net monthly costs. You will pay more repayment in the future while paying less interest. You therefore benefit less and less from the mortgage loan interest deduction.
2. As the term is advanced, there are fewer and fewer opportunities to benefit from tax benefits.
Tax pays part of the interest annuity mortgage loan!
The tax authorities make it more fun for homeowners! In this way they contribute to the mortgage loan interest you have to pay. The Tax and Customs Administration does this in the form of the mortgage loan interest deduction. This is a subsidy on buying. But you must pay for the repayment yourself.
As the term progresses, you pay less interest and more repayment. The bottom line is that you receive less and less money every month from the tax authorities.
Calculate your annuity mortgage loan
Are you curious about the net and gross monthly costs for your annuity mortgage loan that you want to take out? Then ask for an advisory meeting at a random bank. They can inform you about the monthly costs of this mortgage loan.
An annuity mortgage loan is in principle suitable for everyone. You have to take into account that the net monthly costs will rise in the future, because you will pay more repayment and less interest (ie less interest deduction). That is precisely why it is important that your income is future-proof.
Of course no one can look into the future. You do not, not us and the bank either. Some risks simply have to be taken. But if you want to opt for absolute certainty, the linear mortgage loan may be a more suitable form for you.
What can you borrow for a house as much as possible?
In 2017 you can still borrow up to 101% of the appraisal value of a property. In 2018 that is only 100%. In practice, it means that you have to bring in a lot of your own money. In addition to the cost of the home, you still pay KK (costs Buyer). You can no longer co-finance this amount. Calculate on Leningen.nl what your maximum mortgage loan is. For the calculation of your maximum mortgage loan, banks take into account many factors such as:
your family situation;
the level of income;
the type of employment;
your age and education;
your loan history;
Redeem interest-only mortgage loan to annuity mortgage loan
You want to convert your interest-only mortgage loan and thus switch to an annuity mortgage loan? This is possible under certain conditions. Ask a bank about the conditions and possibilities. Please note that you must bring in your own money when you transfer this mortgage loan. Because you may be able to take out a lower mortgage loan because of the stricter loan standards that were introduced from 2013 onwards.
Difference annuity and linear mortgage loan
There are a number of differences between these 2 loan forms. Agreements of the two mortgage loan types, however, that you always repay during the term. On the end date of the mortgage loan agreement your home is also paid off.
An important difference between the annuity and linear mortgage loan is that the linear mortgage loan is cheaper on balance. You will solve this faster. As a result, you automatically pay less interest on the whole. At the beginning of the term, however, the net costs are the highest. This is because you solve the most.