Mortgage offer interest rate in the Netherlands
The basic interest rate in your mortgage offer can consist of the mortgage offer interest or agreements about current interest rates and downward-tracked interest rates. Usually, the interest in the mortgage offer is also the definitive set interest rate you will pay when the mortgage term starts. We call this the mortgage interest rate. This interest rate can be fixed during the fixed-rate period that you have chosen, or there may be a variable interest rate.
Current interest rate (in Dutch: dagrente)
Often there are a few months between signing the mortgage offer, and actually taking out the mortgage. Is the current interest rate on the day of signing the mortgage deed lower than the interest rate in your mortgage offer? If this is the case, some lenders will offer you the opportunity to obtain that low interest rate. This principle of making the rate applicable to new mortgages is referred to as the dagrente: the current interest rate.
Downward-tracked interest rate (In Dutch: dalrente)
In older mortgage products, downward-tracked interest rates might apply. This means that the lender will provide the mortgage at the lowest applicable interest rate in the period between issuing the offer and passing the mortgage deed. These days however, dalrente is generally no longer used.