Want to save on your mortgage? Take a look at your risk premium
Your mortgage is usually your largest monthly expense. Then it's nice if you can save on that. Are you now paying a risk surcharge for your mortgage? Maybe it can be reduced - and then you can easily save tens of euros per month.
Risk class of your mortgage
Each mortgage is assigned a risk class. Suppose you cannot pay your mortgage, the mortgage provider runs the risk of losing their loan. The more money you have to borrow for the home, the higher the risk class of your mortgage. You then pay extra interest: the risk surcharge.
- Is your mortgage high compared to the home value? For example, 80, 90 or even 100 percent? Then you pay a lot of risk surcharge.
- Is your mortgage relatively low because you were able to contribute a lot of your own money? Then your risk class, and therefore also your risk premium, is low. With a mortgage debt of less than 60% of the home value, you often no longer pay a risk surcharge at all.
With NHG mortgages you usually do not pay a risk surcharge. Not even if you are in a high risk class. The NHG is already a financial safety net, so the mortgage provider runs little risk.
Lower your risk class?
The mortgage provider determines the risk class when taking out the mortgage. After that, your mortgage will remain in the same class, while the financial picture may change considerably. There are two situations in which it is quite possible that your risk class is now too high.
Your home has increased in value. Is your home worth more now than when you purchased it, for example due to renovations, renovations or rising prices on the housing market? Then your mortgage debt is now a smaller percentage of the home value.
You have paid off the mortgage. Have you paid off so much that your mortgage debt has fallen significantly? Then the risk for the mortgage provider also decreases, and you may be in a lower risk class.
Can your mortgage be moved to a lower risk class? Then you save on interest. And that can save a lot of money.
Demonstrate home value with an appraisal report
The risk class is therefore related to the home value. Do you want to convince the mortgage provider that your risk class can be lowered? Then you have a better chance with a validated valuation report.
A validated valuation report means that the appraiser is affiliated with the NWWI, the organization that monitors the reliability of valuation reports. This means that your mortgage provider knows that the valuation is objective and realistic.
Can you use the appraisal report to demonstrate that your home value has increased significantly compared to your mortgage debt? Then you immediately benefit from a reduced risk class.
Costs for an appraisal?
A valuation report costs money. Often several hundred euros. But if your risk premium decreases, you will quickly earn it back, and the costs for the report are tax deductible. So it is usually worth the investment.
You have to check it out yourself, because most mortgage providers do not tell you that your risk class can be lowered. Bee ECHT Makelaars We actually think that is unfair: you pay for a risk that is no longer there. And not everyone can just pay for a valuation report.
That's why we have a special offer: when we appraise your home and the risk class did not down, you don't pay any appraisal costs. So you only pay for the appraisal if it results in a reduced interest surcharge.
Want to know more about this? Please feel free to contact us.
