Should I look for another home? Would it be a good idea to make my home more sustainable? Is it worth refinancing my mortgage? At first glance, these may seem to be separate questions. However, they are related. By comparing various scenarios and calculating for the future, you know exactly what is worth doing.
You have undoubtedly wondered whether refinancing your mortgage could be to your benefit. This seems easy to answer with a simple calculation based on the current and new interest rates. However, don’t forget the following:
You must first recoup this amount before you reap the benefits of your new lower mortgage interest rate. The general rule is: the longer the payback period, the less appealing it is to refinance your mortgage.
If you are thinking about refinancing your mortgage, it is important to ask yourself how long you want to continue to live in your current home. After all, there is no point in refinancing your current mortgage if you think there is a good chance that you will be moving soon. This will save you the refinancing costs.
We advise customers who want to refinance their mortgage to first make an extensive inventory of their current living situation, housing preferences and plans for the future. Once you have a good idea of this, you can draw up various scenarios and calculate these fully. Refinancing is not a goal in itself, but a possible result of such an inventory.
Due to the housing shortage, many people decide to stay in their homes. There are plenty of reasons to adapt your home to your current wishes, such as the desire to have children, the need for a quiet, comfortable place to work or a spacious living kitchen that is fully equipped. A renovation often involves applying for an additional mortgage. It is wise to also consider the option of refinancing your existing mortgage at such a time. It could happen that your monthly costs actually go down.
Increasingly more people are becoming enthusiastic about solar panels, heat pumps and other sustainable solutions. For starters, it reduces energy consumption. A well-insulated home provides more comfort and makes your home more modern. If you are planning to renovate your home, you would do well to make sustainable choices. The planned renovation may be a good opportunity to make your entire home more sustainable. The chances are this will save you time and money. Moreover, you will only experience inconvenience once.
Not only must your house fit like a glove, but also the financing of your home. By considering the options of refinancing, renovation and sustainability, you arrive at an optimal solution. Financially, but also with a view to the future. You will also save on advice and notary costs. By applying such an integrated approach, the renovation will probably also be cheaper.
It is therefore a good idea to place all your plans for your home in a larger context. In a consultation, we bring together your personal housing preferences for the future with the financial options and tax arrangements. Because as a bank we believe it is important to help our customers move towards a sustainable future, this is also reflected in our financial services.
Interested in a consultation about your housing needs? Make an appointment with a private banker.
Send us your contact information and we will call you back within two business days.
We are available on business days between 09.00 and 17.00 to exchange ideas.
