Saving money is something we all want so that we can save more or spend more on more important things in our lives. One of the fixed costs that we can save is the mortgage. A fixed burden on which you may not think you can save, but we have collected some tips that might help you save on your mortgage.
Choose a lower interest rate
You may think that you cannot switch from a mortgage, but nothing is less true. Although there are some conditions. There is a chance that you will have to pay a certain fine when you want to transfer, but in many cases you are even more economical with the fine. So look carefully at the other options you have, you might find a better deal. For example, you can look at foreign mortgage enhancers, who often offer mortgages with a significantly lower interest rate.
You can also avoid the transfer fine by switching when your fixed-rate period has just ended. Then you don’t have to pay a fine and you save even more money.
Own money at your disposal?
If you still have some of your own money, you can put this in your mortgage to reduce the fixed costs. The sooner you pay off the mortgage, the less interest has to be paid and the more money you can save.
Check whether you can get a lower interest rate at your bank
The interest for your mortgage is determined by the risk that the bank runs on this. A higher mortgage usually means more risk and therefore a higher interest rate. This mortgage interest can change as time passes. Suppose that the value of your home changes drastically or that you have already repaid a lot of debt, then you can fall into a different risk class so that you have to pay less interest. You can always have this checked at the bank. For example, you can have a valuation report carried out to determine the current value of your home. After this you can see if the current value falls within another class and whether you can save money. Moreover, it is always useful to know exactly what your home is worth. You never know when you need this information.
Check whether you still have a usury policy
For a long time there were many banks that used usury policies. These are policies whereby you pay the bank too high administrative and management costs. The banks must ‘reclaim’ these policies, but this has certainly not happened with all policies. It is therefore a good idea to check whether you still have a usury policy. Is that the case? Banks are then obliged to reclaim this policy. This will lower your mortgage interest.
A service offered at some banks is interest averaging. Here you will pay a lower interest, but the interest will be fixed for a longer period of time. Ultimately, this will not save you, but you will temporarily pay fewer fixed costs. This can be useful when you are temporarily short of cash. That way you have at least extra money available.
As you can see there are many ways to save money on your mortgage. We recommend that you look carefully at which ways are possible and which are best for you. Of course you can always try different ways. In this case it is often the keeper who wins.