A mortgage is cheaper than borrowing consumer money. By taking out your loan in the mortgage you lower the monthly costs. We calculate the benefit for you.
Include loan In mortgages
A mortgage is cheaper than borrowing consumer money. Compare the mortgage interest with the loan interest. By taking out your mortgage loan, you only pay mortgage interest and your monthly costs fall. This is also referred to as refinancing the loan.
Capital gain is needed refinancing loan
When taking out the loan in the mortgage, your mortgage goes up. The new mortgage summary must of course fit within the current mortgage standards. Because you are only allowed to borrow 100% of the property value, you need surplus value. With the rise in house prices, this is the case with most homeowners.
In addition, the new mortgage is tested on your income. Because refinancing the loan yields to saving, the new mortgage is often appropriate to the income.
Merge costs for loan and mortgage
For raising the mortgage, costs are charged for advice, valuation and notary. This makes the loan and mortgage merging more expensive than the refinancing loan, which in many cases is free.
On the other hand, the loan included in the mortgage provides a greater saving. Certainly if you combine this with mortgage refinancing. If there is sufficient surplus value, you can also redeploy the costs in the mortgage.
Calculation example: transfer and take out a loan in the mortgage
To give you an impression of the savings and costs, we have calculated a practical example. In addition, we combine refinancing with the inclusion of the loan in the mortgage.
The current situation of the customer
- Income: € 36,228 + € 25,360 (including holiday pay)
- Property value: € 295,000
- Mortgage debt € 169,813, of which:
- Repayment-free € 100,000 interest 3.8% (10-year fixed).
- Annuity € 69,793 interest 3.5% (10 years fixed)
- Consumer credit € 24,000 with an outstanding balance € 20,000 interest 6.9% starting date 01-07-2016 and term 10 years.
New mortgage with the loan included
The customer wants to keep the interest-only mortgage part as much as possible. The surplus value is partly used to include the financing costs and the consumer credit in the mortgage. Our proposal:
- Repayment-free € 100,000 interest 1.90% (10-year fixed)
- Annuitary € 69,813 interest 1.70% (10 years fixed)
- Annuitary € 33,149 (box 3) interest 1.70% (10-year fixed). Consumer credit and refinancing costs are co-financed in this.
Transfer costs: € 13,149 (notary € 725, appraisal € 475, advice brokerage costs € 2,625 and penalty interest € 9,324).
Benefit for the customer and payback time
- Current gross monthly payment: € 954
- New gross monthly payment: € 576
When determining the payback time, only the gross interest expense is compared (without repayment). This difference is € 332 per month. The costs are recovered in 40 months in (€ 13,149 / € 332).