A cheaper mortgage? How can you save on your mortgage in 2021, what are the tips for this? Lower costs for the home and therefore lower monthly costs for your mortgage. You can save on the mortgage if you buy the home, but also if you already have a mortgage, repayments can be made, the interest surcharge on the mortgage can be limited or if renegotiations have to be made with the bank.
Pay less for your mortgage, this is how you do it in 2021
- Save on monthly costs and mortgage costs
- Costs to take out a mortgage
- Don’t spend more money than necessary
- Notary mortgage deed costs 2021
- Save on mortgage during the term of the 2021 mortgage
- The interest surcharge can be reduced
- Renew your mortgage in 2021
- Conclusion save on the costs of a mortgage
Save on monthly costs and mortgage costs
There are several moments when it is possible to save on the costs of a mortgage:
- At the time of taking out the mortgage. Consider the mortgage interest at the start and the closing costs;
- During the term of the mortgage. Consider the extra repayments, the interest surcharge and the interest rate review that takes place regularly.
- When renewing a mortgage.
Costs to take out a mortgage
The costs of taking out a mortgage consist of:
- The costs of mortgage advice.
- Property appraisal costs.
- The handling costs.
- The costs of the notary.
Don’t spend more money than necessary
Savings can be made on all these components with a new mortgage in 2021, including on consultancy costs. For example, mortgage advice is not strictly necessary if you know what you want. In addition, the choice of mortgages has become relatively simple if you want mortgage interest deduction. These are no longer complicated sums with possible returns from investments, saving on a blocked savings account and other hocus pocus. You can choose from an annuity mortgage or a linear mortgage and what that means for interest and repayment is relatively easy to visualize. Of course, an advisor will tell you that a mortgage is a complicated product and advice is needed. But this certainly does not have to be the case in all cases and anyone who chooses execution only by taking out a mortgage via the internet will not incur any consultancy costs.
Notary mortgage deed costs 2021
With a first mortgage, the costs of a notary cannot be avoided, but you can look for a cheap notary. Not every notary is equally expensive and in consultation with the bank there is often plenty of choice. So compare the rates of notaries. If your income allows an increased registration of the mortgage, you do not have to go to the notary again for more mortgage, but you can fully settle the mortgage with the bank as long as you remain within the maximum agreed credit.
Save on mortgage during the term of the 2021 mortgage
You take out a mortgage for many years. Usually a fixed interest period is agreed upon, after which an interest rate review and extension of the mortgage can take place. The moment of interest rate revision is also the time to take a good look around. Is the mortgage interest offered to you still a good choice or would it be better to transfer your mortgage to another mortgage provider? Again, compare different offers and mortgage quotes from banks and switch if necessary. The moment of review is also the moment when you can switch without paying penalty interest. If you stay with the bank where you previously took out the mortgage, you can repay large amounts without penalty when the interest rate is adjusted and the permitted repayment is not limited to 10% or 20%. These are all ways to make your mortgage cheaper and thus save on your monthly costs.
The interest surcharge can be reduced
If you have a relatively large mortgage, the bank will charge a high interest surcharge, which will mean that you have to pay more mortgage interest. This interest surcharge can be reduced or removed if you make additional repayments or if you obtain the National Mortgage Guarantee. That may not have been possible at the start of the home, but after a few years it can certainly be a new option that you can look at.
Renew your mortgage in 2021
Competition in the mortgage market is fierce, especially if you opt for a long term. With long terms, not only well-known banks participate, but also insurers and sometimes pension funds. The yield curve is inverse, which means that the mortgage interest rate for a 10-year mortgage is lower than for a mortgage with a shorter term. This way you can secure your mortgage for a long time at a low interest rate.
Conclusion save on the costs of a mortgage
The days of staying with the same bank for thirty years with your mortgage are over. The time when you had to seek mortgage advice and pay generously for it is also outdated since the commission ban in 2021. The statement that paying off a mortgage is always unwise, because the mortgage interest deduction will then be less, is now also outdated. All this means that from now on, someone with a mortgage on their own home will have to actively monitor developments to see how they can best save on their monthly costs. Fortunately, a lot can now be arranged and selected online via the Internet, which in most cases means it will be cheaper.
- Mortgage and mortgage advice 2021