The long-term interest rate has been hovering around zero for quite some time. Far from your bed? Maybe not, because it may have consequences for those who want to take out a mortgage loan.
What is that, the long-term interest rate?
Long-term interest means the interest that you get when you invest in a government bond that is still 10 years. This interest rate is historically low. And that has consequences for many parties.
Until recently, the long-term interest rate even fell below zero. That meant that those who invested in government bonds did not receive interest, but had to pay.
What does this mean for your savings?
Although the interest rate of savings books is not determined by the low long-term interest rate and rather by the short-term interest rate, it is not fantastic news for those who save their money in the bank. After all, the banks will not be inclined to raise interest rates on savings books.
Currently, the legal minimum interest rate of 0.11 percent keeps the interest on savings books artificially high. The ank will therefore first have to raise the short-term interest rate before the interest rates on the savings accounts rise.
Interest rate mortgage loan
Those looking for a mortgage loan can take advantage of the low long-term interest rate. After all, the average interest rate for home loans is at the lowest level ever at all banks. The average fixed mortgage interest with a term of 10 years is barely around 1.22 percent.
In other words: it is now the ideal time to take out a mortgage with a favorable interest rate. Those who wait too long may see interest rates rise again.
Find the cheapest mortgage loan now
Are you interested in a mortgage loan? We work together with many banks. That is why you have the best chance of finding the cheapest loan with us.
In a confidential conversation from person to person we together look at your financial situation, your needs and the possibilities that present themselves. This way you obtain a favorable mortgage loan, so that you retain enough financial breathing space.