Home Simulation Interest rate barometer

# Interest rate barometer

Is the interest rate rising or falling today? No idea! That is to say: there is not one answer to that. It depends on your situation. Will you choose fixed or variable, how many years do you want to borrow, how much savings can you contribute? Based on that, our interest rate barometer gives an average of the current interest rate. And you immediately see whether it is on an upward or downward trend.

We start with a finger in the air: interest rates are not everything. The price-quality ratio of a loan often depends on additional conditions of the bank. Especially the additional insurances can make a difference of thousands of euros. So don’t rely solely on that percentage!

#### Amount

What amount do you wish to borrow

#### EPC

What is the current EPC value

Please note: Energetic renovation up to ≤ 400 (Label D) mandatory!

#### Loan type

What type of loan do you wish to take out?

Loan term

#### Quotity

The ratio between the amount of your mortgage loan and the value of your home.

#### You rate

x.xx%
+ x,xx% laatste x jaar
+ x,xx% lening van x over y jaar

## Loan-to-Value Ratio

The loan-to-value ratio is the ratio between your equity and the expected loan. The lower this ratio, the greater the chance of a favorable interest rate. You can calculate your loan-to-value ratio by dividing your own contribution by the total amount of your expected loan, and multiplying it by 100. Subtract this result from 100 to obtain your loan-to-value ratio.

### An example:

• Own contribution: € 45,000
• Expected loan: € 300,000
• Calculation: 100 – ((45,000/300,000) * 100) = 85%
In this case, you choose the option: [81 – 90]

## This is how our interest rate barometer works

The advantage of an interest rate barometer is that you can see an average and especially that you can play around with a number of factors to see what the effect is. Borrowing for 10 years, for example, will result in a lower interest rate than borrowing for 25 years, but your monthly payment will of course be much higher. The loan-to-value ratio is also important for banks: the share that you want to borrow compared to the savings that you can bring in yourself.

The machinery behind such an interest rate barometer is not insignificant. We continuously enter the conditions of 25 banks behind the scenes, every day. The database lists the most common credit providers for your type of loan, and we take an average of that. We do not include outliers (such as a bank that increases interest rates because it temporarily wants to close fewer loans).

## Three reasons to use this interest rate barometer.

This is not the first interest rate barometer – but if we may be so immodest: it is probably the best. Why? Three reasons.

1. Our interest rate barometer is up-to-date. A database works with numbers, but you need manpower to collect and interpret them correctly. That’s why we have experts on board. It’s our job to monitor the market on a daily basis – otherwise we won’t find the best loan for you. So we’re at the source.
2. By filtering out the outliers, we provide a better picture. Sometimes we read in the media reports about the average interest rate dropping, while the market is actually going in the opposite direction. Sometimes even financial experts get it wrong, because they lump all banks and all situations together. That way you know everything and nothing at the same time.
3. We take into account the energy score of your home. Banks do the same. A poorly insulated house will quickly lose value, and that’s why you’ll get less favorable terms. Count on it weighing even more heavily in the future.

## One reason to still make an appointment.

As mentioned, interest rates are not everything. Therefore, view the result of the interest rate barometer as the weather radar: a valuable app, but you still look out the window to see if it’s raining. To find the best loan, you are always better off with personal advice. For that, we’re still here for you.