Loans are now becoming almost must-haves in everyone’s life: few people have not resorted to funding at least once in their lifetime. It goes without saying that this is sometimes limited by the fact that credit agreements are full of clauses that prevent them from being signed, therefore it can happen that a customer is refused the loan request because it lacks the necessary requirements.
On average, we buy our own house at a later age and bring in less money compared to the loan. Moreover, the duration we borrow is decreasing, although according to the mortgage specialists that is not always a good thing. These are some of the results from the annual home trend survey by Immotheker.
Housing trend investigation
In the housing trend survey, the mortgage specialist examines what the data of 4,000 customers look like, for example to indicate trends compared to the previous year. There appear to be a number of trends, for example, on average one year later we choose to buy our own house. We are now on average 36 years old, before that was 35 years old.
Lower input of own money
Moreover, on average we contribute less of our own money when we finance a home. Starting couples bring on average 5.3% less own money, the starters bring on average 4.6% less own money. The transfer students even bring 10% less own money, they opt for a higher financing because of the low interest rates. The low interest rate at the moment means that it is relatively advantageous to bring in less of your own money.
The study also shows that on average a loan runs for 22 years, while it was previously 23 years. This is mainly due to the higher rates charged by banks for a longer term. According to mortgage specialists, it is not always wise to borrow for a shorter period. Monthly charges are rising, leaving fewer other financial resources. It therefore seems wise to keep a close eye on the trend and to check whether borrowing money for an owner-occupied home will indeed become more expensive on average.
Finally, on average, we choose to pay less. In 2013 we still paid $ 1,050 a year, in 2014 it was just $ 989. On the other hand, this means that a higher mortgage debt remains, which means that it is important at the end of the term to refinance the home or to arrange for a repayment.