Mortgage Interest Rates Netherlands
Mortgages rates in the Netherlands vary between lenders, but basically depend on:
Value-to-loan ratio:This is the ratio between the value of the property and the value of the mortgage. In order to cover their risk, banks increase the interest margin in line with the percentage of that ratio.
Fixed term of the mortgage:This is the period for which the mortgages rates are fixed. The longer you decide to have the mortgage rates fixed, the higher they will be. Many banks offer options of 1, 5, 10 or 20 years, but other periods can also be available.
If you have taken out a NHG: The NHG (Nationale Hypotheek Garantie) is a scheme that guarantees repayment of a mortgage, even if the borrower becomes unable to do so directly. It is only available for mortgages up to a certain value (EUR 247,450 in 2017). The NHG reduces the risk for banks and in turn, offer NHG participants a lower interest rate, typically up to 0.7 percent lower.
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