Anything more expensive? 7 Tips to Lower Your Housing Expenses | The Swollenaer

In recent years, the ECB has made every effort to keep inflation at a certain minimum level. However, several factors have caused inflation to rise sharply since mid-2021. Due to, among other things, the revival of the economy after the corona crisis and Russia’s invasion of Ukraine, food, energy and fuel prices have since risen sharply. Because wages do not increase proportionally, purchasing power declines. There are several things you can do to prevent your purchasing power from plummeting. For example, by lowering your housing costs. Below you will find seven tips for this.

What has fallen in purchasing power, and what is the government doing about it?

The Dutch can do a lot less for every euro this year. The Central Planning Bureau has recently calculated that the average decline in purchasing power will be 2.7 percent in 2022. However, it may still rise to almost 3.5 percent. Such figures have not been seen for four decades and are therefore quite exceptional.

Fortunately, the Dutch government has realized that such a decline in purchasing power can lead to financial difficulties for many households. Although a full recovery in purchasing power cannot be guaranteed, measures have been taken to curb declining purchasing power. For example, the fuel taxes are reduced from 1 April and the tax on electricity and gas from 1 July.

Not many people can escape rising prices. Especially not on the higher energy bill. Fortunately, there are ways to save on your housing expenses. Homeowners in particular can benefit from this. Because the mortgage is the biggest expense for many households each month, saving on it can quickly make a difference. By making your home more sustainable, you are lowering your energy bill. How can you lower your housing costs? Below you will find seven practical tips.

Transfer your mortgage

Have you set the mortgage rate for a long time for 2016? But is the end of the fixed interest period not yet in sight? Due to the rising interest rates, it may still be interesting to restructure your mortgage. Rising interest rates mean a lower penalty rate, if any. You can easily calculate interest rates and mortgages online. Here you will also find a lot of information on comparing and saving on your fixed costs.

Average mortgage rate

Is transfer not an option because of the penalty interest? And do you still want to stay with your current mortgage lender? So inquire about the possibilities of calculating an average mortgage rate.

Choose a fixed interest period instead of a variable mortgage rate

In recent years, people with variable interest rates have been able to take advantage of the situation in the mortgage market. Over the past year, however, many mortgage lenders have raised interest rates at least once. There is a chance that interest rates will rise further. Do you want to avoid higher housing costs in the future? So agree on a fixed interest period now.

Make sure your mortgage falls into the right risk class

When you take out a mortgage loan, you fall into a certain risk class. The mortgage banks decide this by calculating the ratio between the loan amount and the value of the home. The higher the mortgage in relation to the home value, the higher the risk class. And the higher the risk, the higher the interest rate. Now that WOZ values ​​have risen sharply in recent years due to the overheated housing market, there is a good chance that you will fall into a lower risk class. This way you qualify for a lower interest rate. Many mortgage lenders do not automatically adjust this themselves, so ask for an interest rate adjustment yourself.

Opt (in part) for an installment-free mortgage

In the past, people often opted for an installment mortgage completely. Today it is no longer possible. Most mortgage lenders allow you to finance even more than half of the value of the home through an installment mortgage. But because house values ​​have risen so much in recent years, this amount has also risen significantly. Because you only pay interest and no installments with an installment-free mortgage, it can lower your monthly costs. Also without the benefit of the mortgage interest deduction.

Raise the equity in your home

Are you approaching retirement age, or have you already retired? And do you now want to create extra financial space so as not to be hit too much by the decline in purchasing power? So see if you can qualify for a cash loan. Even if your housing costs are higher by taking out an (extra) mortgage, you will get money at once, which would otherwise be stuck in the rocks.

Make your home more sustainable

Probably due to the increased energy prices, there is suddenly a great demand for energy-saving measures in Denmark. Think of an improvement in insulation, a heat pump and solar panels. But in many cases it is a significant investment. Do you not have enough savings? Then you can take out an extra mortgage with many mortgage lenders. Sometimes even at reduced interest rates. The investment pays for itself because of the lower energy costs, but also because the house is worth more.

Good luck saving!

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