Borrow money at low interest rates? It is now the right time for that. But how can you find the lowest loan rate? And how is it that the borrowing rates differ per type of loan? In any case, it is very wise to always compare several loans from different lenders.
This can be done on the website Leningen.nl. Of course you do a good comparison in the first place on the basis of interest rates. It depends on various factors whether you can actually borrow money at low interest rates. These factors will be discussed later on this page.
Still borrowing money at low interest rates in 2017
You can rest assured. Because in all probability you can also borrow money in the last quarter of 2017 at low interest rates. We do see the interest rates in the meantime rising cautiously, but for the time being there is not much progress yet. According to economists, however, it is not the question whether the interest rates continue to rise, but especially to what extent this happens. The ECB has taken some decisions to promote inflation.
As a result, market interest rates start to rise again for the first time in years. Companies are encouraged by the ECB to start lending again and banks dare to take risks again for the first time in a while. It is also striking that investors dare to invest again.
Interest rates will certainly rise 100% due to higher policy rates in the US
The interest rates in the Eurozone also depend heavily on the policy rate in the US. The American umbrella of the central banks regulates this policy rate and has increased interest rates twice. The past teaches us that interest rates in the Eurozone (and ultimately also in the Netherlands) increase after a while.
Forecasts mortgage interest rates 2018, 2019 and 2020
The low lending rates are expected to end definitively from 2018 onwards. In the Netherlands, interest rates will then not drop any further, but will actually rise. Although future borrowers do not have to despair for the time being. The prognoses are still pretty rosy, as this will happen very gradually. The low interest rates in 2017 are related to the interest on the government loans. The ECB, this is the European Central Bank, buys government bonds and therefore the state itself can borrow money at low interest rates.
Buying these loans will soon come to an end. The interest rates on loans and mortgages will therefore rise again. In the Netherlands there is less competition between banks. The increase will then probably take place earlier than in Germany.
3 factors that determine the money borrowing interest
The development of interest rates in the Netherlands depends on 3 factors. On the basis of these factors, economists can predict what the interest rate expectation is:
1. Market interest rates.
2. Bank financing costs (related to total mortgage debt).
3. A lot / little competition on the mortgage market.
Where can I borrow money at the lowest interest rates?
At which moment can you borrow the cheapest money at the lowest interest rates? This question is not so easy to answer. Because lenders do publish the lowest interest rates, but what interest you owe to them depends on a number of factors. The low interest rates with a provider can be higher in practice if, for example, you already have debts or if your income is low. In any case, banks always charge a lower interest rate if you borrow more money. However, you are even cheaper if you opt for a small loan with the shortest possible maturity! For example, take out a personal loan and pay it back as soon as possible. The advantage of personal loans is that you can fix the interest. You do not have that advantage with the revolving credit.
Less benefits low interest rate with the revolving credit
Benefit from the historically low interest rates? In any case, no revolving credit. Yes, even with this credit you pay a low entry fee. But this is variable. This means that the interest costs of this loan may rise sharply in the future. The interest expectation for 2018, 2019 and 2020 (although the coffee grounds look) is still rosy, but what is certain is that the borrowing rates will rise from 2018 onwards. If you take out a cheap revolving credit now, you will only be paying more interest in the future.
Personal loan interest
Terminate a personal loan with a longer term to still benefit from the lowest loan rate! The advantage of this loan is that you can fix the interest. This loan is particularly attractive when you have to borrow a large amount. With a revolving credit it is uncertain what the future interest costs are. That interest is in fact variable. While with a personal loan the interest during the term always remains the same. Do you want to borrow money for a renovation? A new car? A new kitchen or bathroom? Close this cheap loan (still …) and have the certainty that you borrow money cheaply in the coming years.
Debt but borrow money? Always top off the loan with the highest interest first
We wrote for this that banks charge higher interest if you already borrow money. A loan is considered a debt, which means that you can borrow less money and pay a higher interest rate. Are you repaying several (small) loans but can you still take out a loan elsewhere? Then make sure that you pay off the loan with the highest interest first. This immediately gives you the most. For the other loans, you must continue to comply with the minimum monthly repayment obligations. Once you have paid off the most expensive loan, you will be left with monthly money to quickly repay the other loans.
Cheaper to borrow? Put end of fixed-rate period in your agenda!
Have you taken out a loan or mortgage in the past and is there a fixed interest period for this? This period will expire sooner or later. The bank will then make you a new proposal. We advise you to note the end of the fixed-rate period in your agenda. This way you can review your loan in time and start looking for a cheaper provider.