Home Loan with a variable rate
Do you intend to buy a house, an apartment, a plot of land or to build your own home? If so, you need a sound financial partner to finance your project. ING Luxembourg is there to help you to draw up a personal financing plan and to provide the funds you need.
What are the advantages of the variable rate?
- The interest rate on a variable-rate home loan is based on changes in the applicable long-term interest rate on the financial markets. Your monthly payments therefore increase or decrease depending on changes in these rates.
- The variable-rate home loan has the great advantage of always allowing you to make additional repayments or even repay it in full without incurring any penalty payment at all. You can therefore shorten the term or decrease the monthly payment of your credit depending on your financial means.
- Another advantage is that if you build or convert a building with a variable-rate home loan: ING makes the amount of credit available to you as the works progress. This saves you from paying interest unnecessarily on funds not actually used.
When making your application, we will clearly explain to you the effect of a change in rates on the monthly payments to be made. This will allow you to plan for the level of monthly repayment should the rates increase.
Often you hear people say: “Anyway, until I have paid off my home loan it’s the bank who owns my house”. But is it true?
It is always the same question that every one of us is asking before signing a home loan with his bank. To gain a more objective overview, let’s analyse them one by one with their respective advantages and disadvantages.
The rate remains fixed for a pre-defined period and, at the end of the period, is subject to a revision. The pre-defined period can vary from one bank to another but is generally 3, 5 or 10 years.