Interest rates home loans may remain low throughout the year

In 2015, the number of credit applications continue to rise for the construction, purchase or renovation of a house. The Belgians clearly want to profit from historically low interest rates to achieve their projects. Even if one expects the euro a slight increase in long rates in 2016 and 2017, however, the terms of mortgage loans will probably remain very profitable this year.

© Lamett

© Lambrechts

© Franke

Currently the rate is for a mortgage loan with a fixed rate over 20 years at Belfius 2.675%. That's the lowest interest rates offered by the major bank ever. These conditions are likely to remain particularly interesting during the next months and so many Belgians to encourage this year to go to their bank to help them in achieving their plans. 
In 2015 knew Belfius for 5.5 billion euros mortgage loans to, which is an increase of almost 40%, much higher than the increase in the market. About three quarters of the mortgage loans Belfius awarded in 2015, was intended for the purchase of an existing home. 13% was earmarked for refurbishment or renovation works and 11% for new construction. The average amount that was borrowed for the construction of a home continued to rise in 2015 and now stands at 166 000 euro. The average amount that was borrowed for the purchase of an existing home has also increased, but less strongly to currently around 142 000 euros. The average amount borrowed for renovations to a property amounts to 38 000 euro, and just over six out of ten loans granted earlier, concluded by persons older than 40 years.
 

More than nine in ten loans with a fixed rate

Belgians may then have a brick in the stomach, they can count very well and will above all have security. It should come as no surprise that using historically low interest rates over nine customers in ten at Belfius currently opt for plans with a fixed rate to avoid their monthly repayments would rise during the term of the loan. For all purposes together, the average maturity of the newly granted mortgage loans relatively stable around 18 years for the purchase of a property and 18.5 years for a new building. Belfius now has for several years the opportunity to temporarily stop the repayments with setbacks during a maximum period of three months (the entire duration of the credit). Source:Belfius.be

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