According to the latest news, the European Central Bank (ECB), Bank of England (BoE), and the Federal Reserve Board (FED) have announced to offer extra funds to the market to support the economies. The U.S and the United Kingdom have already taken the emergency step of cutting the interest rate to zero in 2020.
The European Central Bank has decided not to lower their interest rate yet. The ECB has agreed to scrutinize and support the financial sector during the outbreak. However, there is a growing likelihood that the ECB will follow a similar path as the U.S. does.
The Dutch economy is considered stable, and our prime minister has mentioned that the government will provide stimuli for the economy, so the economy can keep performing.
The Dutch mortgage rates are depending on a couple of factors. One of the most important factors is the rates that the ECB offers to banks. If the ECB lowers their interest rates, consumers can expect banks to offer lower interest rates as well. If you have a savings account, you’ll not be pleased. However, if you’re buying a home in the Netherlands and need a mortgage, you’ll be happy that rates are dropping.
The Dutch mortgage market is highly competitive, as there are more than 40 mortgage lenders. The active lenders are banks, insurance companies, pension funds, and other financial institutions. Currently, Dutch mortgage rates are historically low. The stimulus from the ECB, BoE, and the FED, makes it seem as if the only way that rates can go seems down in the short term.
The impact of Corona on the Dutch housing market is hard to tell at this moment. It still makes financial sense to buy a home instead of renting an apartment, see our calculator as well. The economic approach will only become more logical since the expectation is that mortgage rates decrease.
We will never tell you that you should buy a home, it should make emotional sense for you as well.
As a potential home buyer or a homeowner, you could make use of mortgage rates decreasing. If you’re a homeowner, we could calculate if it makes sense to refinance. Feel free to reach out to get a free calculation or call us to discuss to learn more about the impact of Corona on your mortgage.