When you want to buy a house, you often need a mortgage. But what types of mortgages are there and what are the differences? We will help you compare the different types of mortgages. There are currently 2 mortgages available for first-time homebuyers: the annuity mortgage and linear mortgage.
The annuity mortgage in a nutshell:
- You pay a fixed amount each month, throughout the term.
- In the first few years, you benefit from tax advantages because your monthly payment consists mainly of interest.
- Interim extra repayments are possible, thus lowering your monthly expenses. But this depends on your mortgage conditions.
- You are sure to pay off the mortgage.
The linear mortgage in a nutshell:
- During the term, you repay the same amount each month.
- At the end of the term, the mortgage is sure to be paid off.
- Repayment and interest (gross monthly cost) are high at the beginning and low at the end.
- At the beginning of the term, you benefit from a lot of mortgage interest deductions.
There used to be (as in before 2013) other mortgage forms to choose from. Now that is no longer the case and so these mortgage forms are no longer common. That's why we won't explain them either, but we will name them for completeness: savings mortgage, investment mortgage and the repayment-free mortgage. If you have one of these mortgages and buy a new home, you can sometimes transfer part of it to the new mortgage. Exactly what the options are, our mortgage advisers know.
Free consultation
Would you like to know more about the different types of mortgages and get advice on which type of mortgage is best for you? Schedule a free consultation with one of our advisers and we will be happy to explain all the options. It is also possible to have us perform a free remote check first.
After a conversation With us, you know exactly what is best for your financial situation!