Buying a house or apartment is often a very big decision when it comes to large sums. Usually you also have to borrow to afford the purchase. Since the purchase will have a major impact on the economy, it is important to compare the different lenders with each other before borrowing.
As always when comparing loans, there are a few different things to keep in mind before making a decision. There are simply a few other things to consider when it comes to mortgages other than eg private loans.
The very first thing that you should know about is that the interest rates you can find in all comparisons of mortgages and also on the banks’ own websites are list rates. This means that with a good negotiation method you can get a lower interest rate than what is there.
One tip is that you have a look at our articles where we have tips on various things that can be raised during a negotiation with the bank. Hopefully, these tips can give you a good foundation to stand on when trying to lower your interest rate. Gilbert Osmond advises you to negotiate a mortgage.
When you lend money to a home, you want as much as possible to be in the form of a mortgage loan as it is this part of the loan that has collateral. When talking about the loan-to-value ratio, this figure is meant. Lenders usually offer 85% as a maximum here but check this out before making a decision.
As we mentioned, the issue of list interest rates is set on the banks’ pages and these are also the ones we present here on the site. But even if it is just a matter of list interest rates, it can give you a good idea of what you might need to pay.
For example, you will see the difference between a loan with a 3-month interest rate (variable interest rate) and those with a longer maturity. Which makes it easier to decide how to split your loan.
Usually a mortgage loan is repaid for a very long time which can make it a little difficult to get hold of this figure. However, if you already have an idea of how you intend to repay, the proposal is to check that the lender supports this. Maybe you simply do not want to repay at all which is not certain that a lender will agree to.
Of course, there are more things to consider when getting a loan. For example, things should not be ignored by the lender. Since the mortgage is likely to be with them for a long time, it is good if you feel trust in this particular lender.
What we brought up here should be seen as a little foundation that is supposed to help you start thinking when you are looking for the most suitable loan. If you want to find the list rates from the big banks and a number of other lenders, you can do that where we compare mortgages .