Home financing ever possible? Probably not!

2023-03-12 14:21:00

Yep! Thanks, well explained. That’s why it’s nonsense to say you should agree on 2 or 3% repayment. It all depends on the rate and the (desired) remaining debt.

2023-03-12 14:30:53

Yes, ok. The initial total rate is higher, which means that in the end more repayment goes through.

Exactly, the total rate is decisive.

2023-03-18 06:54:33

Today and tomorrow, no more houses will come onto the market due to failed financings than usual. Because those who need follow-up financing today took out their financing in 2013 or 2008. In 2013, the interest rate was just under 2%, in 2008 even 5%.

Those from 2008 can therefore obtain a lower interest rate today than in their first financing, those from 2013 pay “only” 2% more. Certainly not nice, but far from forced auction.

It will get interesting from around 2028. Then the loans from the 1% period will have to be refinanced. That can and will surely be difficult for some. But it will only affect those who have been living on the edge from the beginning.

2023-03-18 09:37:24

Today and tomorrow, not more houses will come onto the market due to failed refinancing than usual.
Because those who need follow-up financing today took out their financing in 2013 or 2008.
In 2013, the interest rate was just under 2%, in 2008 even 5%.

Those from 2008 can therefore obtain a lower interest rate today than in their initial financing, those from 2013 pay "only" 2% more. Certainly not pleasant, but far from foreclosure.

It will get interesting from around 2028. Then the loans from the 1% period will have to be refinanced. That can and will certainly be difficult for some. But it will only affect those who have been tight from the start.

I completely agree.
Furthermore, the real estate market will probably be less filled by the properties whose refinancing fails in a few years, but rather in the future by those who cannot or do not want to afford energy-efficient renovations. That will be an exciting time regarding the market and above all the purchase prices. And it will be interesting to see whether that only affects houses in need of renovation or whether the price drop will also spread to more modern, efficient buildings.

2023-03-18 09:42:31

In 2028, you already have 10-15% more salary in your pocket. And you don't have to be debt-free by retirement. Then the loan is simply set for 20 years, not 10.

And what is often forgotten: Many will learn to do without. Then there is simply no second car anymore and no vacation either.

Before you lose the house, a lot has to go seriously wrong. By the way, you can also sell it yourself; it doesn't have to go directly into foreclosure.

Such a foreclosure is also not without risk for the bank.

2023-03-18 15:55:06

And it will be interesting to see whether this only affects houses in need of renovation or if the price drop also spreads to more modern, efficient buildings.

If the delta between new construction and old buildings is very high, it can be profitable to renovate commercially and then sell as like-new with a profit. Therefore, prices will never diverge too far. Demolition and new construction is also always an option.

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Home financing ever possible? Probably not!

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JanCux20

Allthewayup

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