2023-04-27 17:28:00
For several months, mortgage rates have been steadily rising in Belgium. Today, the average rate, granted by the banks, exceeds 4%. It has been nearly 10 years since a mortgage loan cost so much.
Average price of a house in Wallonia: around 250.00 euros. Two years ago, borrowing this sum over 20 years at a rate of 1.5% cost 1205 euros per month. As a result, you reimbursed 289,245 euros. Today, the monthly payment goes to 1,505 euros and the rate to 4%. The differential per month and for the entire duration of the loan is substantial:
Alessandro Carlisi, banker, explains: “People are realizing that it’s going to cost them more than they imagined. Real estate prices have increased. But for those who want to do the work, the price has also exploded. All in all, the budget is getting much tighter.”
As a result, the number of mortgage loans granted is down sharply. “We have just had two exceptional years with the Covid period. Today, in 2023, we are at minus 35-40% in terms of volume”, add Alessandro Carlisi.
So, should you choose a fixed rate or a variable rate? At the moment the difference between the two is very small. In principle, interest rates should continue to rise, it is better to opt for a fixed rate, even if it means renegotiating it later.
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