2. The mortgage rate
A low mortgage rate sounds great of course. In general, this is indeed positive – as long as you secure your interest rate for a minimum of 10 years. With a shorter term, the calculation may produce a lower maximum mortgage.
For example: if you secure the interest rate for less than 10 years, your maximum mortgage is not calculated based on the actual interest but rather on a reference rate of 5% (this interest rate is redefined per quarter by the AFM). This is because your monthly expenses may drastically increase after the fixed-interest period. In this case, the bank’s risk level is higher. As the bank wants to be certain that you can continue to pay your expenses after the fixed-interest period, they estimate higher monthly expenses using the reference rate.
View the current mortgage rates here