Especially for starters in the housing market: a mortgage with a term of 40 years. Until now, the maximum term of mortgages was 30 years. Insurer ASR now offers a 40-year mortgage from 24 May. It must be a feasible and affordable solution for starters in the difficult search for a home.
This is an annuity mortgage, which means that repayments are made while the monthly payments remain the same throughout the term. The total interest burden of a 40-year annuity mortgage is higher, because interest has to be paid longer. On the other hand, the repayment is spread over more years. Net the monthly costs of such a starter mortgage are therefore lower.
The mortgage is exclusively for starters in the housing market, so for people who buy a house or apartment for the first time. There is no real age limit, but ASR does monitor what the situation is like for people older than 40.
Mortgage providers have been looking for new forms of mortgages for some time. A tailored mortgage for seniors, for families, for people with multiple homes, for freelancers, or for starters. “We live in a time when we retire later, on average live longer and work longer, have more employers and work through flexible or temporary contracts and that calls for more flexibility”, according to ASR
According to consultants IG & H the problems for starters are growing. “In 2013, 30 percent of single people under 35 years of age bought a house, in 2018 that's down to only 13 percent,” says consultant Joppe Smit. Beginners in the housing market are being bogged down by ever-increasing house prices and tightened borrowing standards.
Figures from the Mortgage Data Network (HDN) show that in recent years more and more choice has been made for a longer fixed term, for both starters and referees. flow-throughs. The average duration is 17 years. Of the new mortgages applied for in the last two months, half has a fixed-rate period of 20 or 30 years.
According to ASR, the current extremely low interest rate has played no role. A shorter fixed-rate period can also be opted for with the 40-year annuity mortgage.
The insurer says that it has been working for more than a year to develop this type of mortgage and to reach an agreement with the tax authorities. The mortgage interest can only be deducted for a maximum of 30 years. Nor were the systems of the bank calculated on mortgages with a term of more than 30 years.