Types of mortgages
In the Netherlands, you have three types of mortgages that are very popular:
- Linear mortgage
- Annuity mortgage
- Repayment-free mortgage
Linear mortgage
With this type of mortgage, you pay a fixed amount of repayment and a variable amount of interest every month. Each month, you repay part of your debt. As a result, the variable amount you pay in interest becomes lower and lower. With the linear mortgage, your net monthly amount is higher at the beginning of the term than at the end.
This type of mortgage has a maximum term of 30 years. At the end of the term, you will have paid off your entire mortgage.
Annuity mortgage
With this type of mortgage, your net monthly costs increase over the term of the mortgage. You pay the same amount in repayments every month. Yet you will pay slightly more each time. Because the repayment and interest portion of the monthly amount does change. In the beginning, you pay a lot of interest and repay little. You then have a lot of advantage due to the mortgage interest deduction. You pay less and less interest and repay more and more. As a result, your net monthly costs go up. At the end of the term, you will have paid off your entire mortgage.
Repayment-free mortgage
You can take out an interest-only mortgage for a maximum of 50% of the market value of your home. You have to finance the other half with another type of mortgage. With this type of mortgage, you don't repay anything, you only pay interest. So at the end of the term, you will not have repaid your mortgage. With this type of mortgage, you will have to save yourself to pay off your mortgage debt at the end of the term.
What suits you?
Depending on your situation, you can choose one or more mortgage types. Taking out a mortgage is always tailor-made. Our mortgage advisor looks at your personal situation and can only then make a good proposal for financing your home.
So let's get to know each other in an initial consultation.