benefiting from low interest rates,
Vixx takes care of it.

The mortgage interest rates are at an  historic low and the housing prices are going through the roof. You can benefit from this! For example, by lowering your monthly costs or by using the capital gain on your property to make your dreams come true. In this blog, we will discuss 6 ways to make the most of the low interest rate. Use it to your advantage!

 

Mortgage rates still at an historic low, 6 ways to benefit 

In this story, we will share 6 ways for you to benefit from the low interest rate. The possibilities are endless with interest rates below 1%!

1. Withdrawing capital gain 

A nice way to benefit from the housing prices and low interest rates, is by withdrawing capital gain. Thanks to low interest rates, withdrawing capital gain of your property is much cheaper than taking out a loan. And this capital gain can be used for various things. For example, buying a boat, a car or a camper van. Going travelling, buying a property abroad or finally starting your own business. Your money can help you make your dreams come true instead of being in the way.

2. Renovating using capital gain

It’s great that your property has increased in value,but what can you buy in return? The prices of other properties have increased as well. If you want to upgrade your living situation but don’t want to buy another expensive property, renovating might be the right solution! You can use the capital gain on your property to finance the renovation project. You can build an extension, buying a new kitchen or bathroom or upgrade your house in another fashion. Thanks to the low interest rates, using your mortgage for this is a very sensible idea.

Read more about mortgage and renovation.

3. Paying less for your mortgage: reducing your monthly costs

As a result of the low interest rates and high housing prices, there are various ways to reduce your mortgage charges, sometimes leading to a reduction of hundreds of euros per month! The possibilities are endless. For examply, by tranferring your mortgage to a mortgage provider who offers a lower interest rate. As a result, you will pay less for your mortgage on a monthly basis.

Your consultant can also calculate if your risk premium can be reduced. As a lot of properties have  increased considerably in value, the percentage of the value of your mortgage compared to the value of your property has changed. The bank is therefore running a lower risk and this means that in general you will pay less interest.

You can read more about reducing your mortgage costs here.

4. Investments (in real estate)

As you are hardly paying any interest on your mortgage at present, it might be interesting to look into using your capital gain for an investment. For example, to purchase a property to rent out. The interest you pay on your mortgage is a lot lower than the return you can expect on your investments. This enables you to obtain a nice return on your investment without having to use your savings account. Investing with money you have borrowed however is more risky than using your savings account. Therefore, always get an experienced consultant to think along with you.

Read more about investing in real estate.

5. Gift for your children

It is obviously great if you have bought a house and have earned capital gain on your property due to the soaring housing prices. Unfortunately, this has not made it easier for first-time buyers. You could use your capital gain to help out your children, family or friends. You can withdraw your capital gain as a gift or a loan. Thanks to certain tax regulations, this might be of interest for you and the other party. Thereby helping yourself and your loved ones.

6. Making your house sustainable

You could also use your mortgage to sustain your property by investing in solar panels or insulation. This is beneficial for the planet, the value of your house and for your wallet. There are also different grants you can apply for. Sustainability also leads to a reduction of energy costs. And this is often a lot higher than the interest on your mortgage. This enables you to make a return on your investment without using much of your savings.

More on sustaining your property.

 

Let’s calculate which options there are for you, using the Vixx Mortgage Update®

As you have read, there are different ways to benefit from the low interest rates. Getting an experienced consultant involved is very sensible. Together you can determine which solution suits you best. Vixx knows exactly which options are available and can find the right solution for your challenge. We are happy to help!

Using the Vixx Mortgage Update, we calculate which solution is best for you. Obviously free of charge and non-binding.

Vixx Mortgage Update®

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