Discount on mortgages

How your interest rate is determined and how you can get a discount on it

Each bank has a list price with an official interest rate that they offer to its customers. But almost all banks also offer a certain discount on this base rate. Therefore, there is a lot of money to save for you as a borrower by asking for such a discount.

The banks' list rates are only an initial interest rate
The banks 'list rate is the banks' interest rate without discount. Almost all banks offer a discount, which means that the actual average interest rates the banks lend to are often significantly lower than the interest rates that the banks advertise with. Since 2015, banks are also obliged to report the average interest rate on which they lend. Therefore, take a close look at the average interest rates when it's your turn to negotiate mortgage rates.

Compare and find the best mortgage discounts

You who compare and actively negotiate the interest rate have the greatest chance of getting a discount on your mortgage rate. However, there are services that help you compare the banks' interest rates and negotiate them for you.

The discount usually lasts for just one year

An important aspect to keep in mind when negotiating a discount on your mortgages is that in most cases, the discount is only guaranteed for one year for moving three-month loans. After that year, a renegotiation takes place in which the discount can be raised, lowered or even disappeared. Therefore, be sure to get a clear message about how the opportunity for renewal of the discount looks.

When you negotiate a discount, it is often also incumbent on you to be motivated to keep the discount.

When you negotiate a discount, it is often also incumbent on you to be motivated to keep the discount. If you do not contact the bank or if the bank does not get hold of you when the discount ends, there is a risk that the discount will expire. Often, just a phone call from your side is required to keep the discount and thus save a lot of money.

New Customer Discount

A special kind of discount that you should be careful about is the so-called retail customer discount. New Customer Discount is an offer for new customers who give you a discount on your home loan for a limited period of time. Because the discount usually only applies in the first year, it may ultimately be worth choosing a discount that does not give as much discount but lasts for a long time.

6 questions to ask the bank about your mortgage tax

1)How many discount points do I have in the interest you offer me? This is certainly relatively easy to calculate based on the listed rate, but it is equally good to get it black on white. Your discount will depend on your bank commitment and how well you are able to bounce on the interest rate.


2)Is any part of the discount a new customer discount that will disappear? If so, when does it disappear and how much is it? If the bank has a new customer discount, it is, of course, important to find out how big it is. Because you will pay back on your home loan for a long time, you should not include a possible new customer discount in your comparison if you do not make a very detailed calculation.


3)How long is it for the discount? As a rule, the validity of the discount is one year. The alternative is that you have a permanent mortgage discount that does not change unless the conditions for the loan change.


4)What do I get for a discount when the term of the mortgage payment is over? Often, the discount depends on whether your finances or market factors have changed. The bank will most likely not be able to answer exactly what you will get for a discount but what you want to know is whether the discount will be reduced sharply or if it will be the same.


5)How do I remind you that my discount needs to be renewed? You always get an avi from the bank when your loan changes. This also applies when the term of the mortgage payment expires. Sometimes the banks can be very unclear in their aviary and if you do not read the avians carefully you can easily miss it. Often, banks report this via email notifications on the web bank or through a telephone call. By asking in particular you know what to expect.


6)What if I do not actively renew my mortgage tax? If you or the bank do not pay attention when the resale tax is renegotiated, it will result in the discount being eliminated. However, it is worth getting it confirmed.