Are you wondering what you can do best when your fixed-rate period ends? In this article we give tips to get the best out of it!
The end of your fixed-rate period
The interest rate is currently very low. If you have a mortgage and your fixed-rate period is about to expire, you will notice that your mortgage costs are going down due to the current interest rate. When agreeing a new interest rate it is important to look carefully at how you can take advantage of the low interest rate. Below you will find a number of tips that you can apply immediately!
Compare the current interest rate
It seems very logical to accept the first proposal from your mortgage provider, especially when your costs go down. But are you sure you are doing a good deal? View the current interest rate, also with other providers. Negotiate what the options are or consider transferring (if this provides financial benefits).
Take storage into account
In some cases you pay more interest if your mortgage is relatively high compared to the value of your house. You can check this with your mortgage provider. If your house has become more valuable in recent years or you have partially repaid your mortgage, these surcharges may expire. This can lead to financial benefits.
The world of finance and mortgages is quite complicated. If you as a layperson are not immediately aware of this, requesting financial advice is not that bad. Of course you pay for this, but often it delivers more than it costs.
Take the mortgage interest deduction into account
It is of course a very nice idea that you will pay less per month. But do not forget that this is also deducted from your tax benefit with the mortgage interest deduction. This advantage ends, which means that your net might not be that much cheaper. It may also be that at first sight nothing seems to change, but that you will receive an additional assessment afterwards. So keep this in mind.
What do you do with advantage?
If you have more left over due to lower net mortgage costs, it is useful to see what you can do with this. Of course you can increase your budget, but if this is not immediately necessary, try to put the money separately in a savings account. So you can decide for yourself whether you want to use the money to repay your mortgage extra, save for your children or perhaps you want to add the money to your pension.
It is of course very nice if you have fewer costs for your mortgage and it offers many new options. But as we already indicate in this article, it is important to get good advice and not to count yourself rich. Moreover, it is wise to immediately use the benefit again to repay or save your mortgage.
Will your fixed-rate period expire soon? Have you already delved into it?