Best Mortgage Rates in Belgium

Are you considering taking out a mortgage and wondering what the best rates are currently available in the market? Mortgage interest rates can vary depending on several factors, such as the loan term and the type of rate. In this article, we provide an overview of the current mortgage rates in Belgium, so you can make an informed decision.

Current Mortgage Rate Barometers in Belgium

Mortgage rates in Belgium can vary significantly depending on the type of rate and the loan term. There are two main barometers that determine the rate you will pay:

Fixed Interest Rate

With a fixed interest rate, the rate remains the same throughout the entire loan term. This offers security about your monthly payments, which will not change. The rates for fixed-rate loans are as follows:

• 10-year loan: The best rate is around 1.10%, while the highest rate can reach about 2.66%.
• 20-year loan: The best rate starts at 0.97%, while the highest rate can go up to 1.46%.
• 25-year loan: The lowest rate is 1.01%, with a maximum rate of 2.80%.

Fixed rates provide stability and are ideal for those who do not want surprises in their monthly payments.

Variable Interest Rate

A variable interest rate can fluctuate depending on market conditions, meaning your rate can increase or decrease over time. Rates for variable mortgages can vary significantly, but here are some general figures:

• Loans of 15, 20, or 25 years: Semi-fixed rates (5/5/5) remain fixed for the first five years and are then revised every five years. The rate is about 1.33% initially.
• Variable rate revised annually (1/1/1 cap 3%): The rates may vary, for example, 1.24% for a 15-year loan, 1.31% for a 20-year loan, and 1.44% for a 25-year loan.

Variable rates can be attractive if the market interest rate is low, but they come with more uncertainty than fixed rates.

Average Mortgage Rates in Belgium

Average mortgage rates in Belgium have increased significantly recently. Here is an overview of the current average rates depending on the loan term and loan-to-value ratio (quotum):

• 10-year loan: The average rate is 2.04% for a ratio of up to 80%, and 2.29% for a ratio between 81% and 125%, a difference of 12%.
• 15-year loan: The average rate is 2.57% for a ratio of up to 80%, and 2.75% for higher ratios, an increase of 7%.
• 20-year loan: The average rates are 2.68% for a ratio of up to 80%, and 2.87% for higher ratios, a difference of 7%.
• 25-year loan: The average rates range from 2.84% to 3.04%, an increase of 7%.
• 30-year loan: The rate ranges from 3.22% to 4.1%, with a difference of 27%.

As you can see, the rate depends on the loan-to-value ratio, meaning the proportion between the borrowed amount and the property value plays a significant role in the interest rates offered.

Factors That Influence Mortgage Rates

In addition to the loan term and type of rate, other factors can affect the interest rate you receive for your mortgage. The loan-to-value ratio is an important factor. The lower the ratio, the more favorable the rate can be.

Conclusion: How to Choose the Best Mortgage Rate?

Choosing the best rate for your mortgage depends on several factors, such as the loan term, the type of rate, and your financial situation. Whether you opt for a fixed or variable rate, it is essential to understand how interest rates are currently evolving and which option best suits your needs. With the right information, you can make an informed decision and secure the most advantageous mortgage for you.

If you need help calculating the costs of your mortgage, you can use an online simulator to get a better understanding of your monthly payments and the total cost of the loan.