Interest mediation is offered by most banks (including Good Finance and Goodbank). At these banks you can use the mortgage interest means:
What is interest averaging?
Interest brokerage offers homeowners the opportunity to lower their mortgage interest rates. The current rate at the bank is averaged with the current mortgage rate in the market. The penalty interest and costs that banks charge for breaking the mortgage contract are settled in the new interest. This is also called an interim interest rate adjustment.
Most banks offer interest-rate averaging
Many banks, including Goodbank, did not offer interest-rate averaging for a long time. ‘Lack of clarity about the tax rules’ was mentioned as the most important reason. By the end of 2015 it was decided to consider the penalty interest (spread over the term) as interest and not as costs. In this way, even with interest averaging, the penalty interest is tax deductible.
More banks then decided to offer interest-rate averaging. Meanwhile, 21 out of 40 banks in the Netherlands are offering interest-rate averaging (subject to conditions). Interest averaging is not possible at the other banks and there are no plans to offer this.
No obligation to use the mortgage interest
Offering interest-rate averaging is not mandatory. In response to parliamentary questions, Minister Dijsselbloem once again emphasized this position. The Minister does, however, consider it important that the lender puts the customer at the center when considering whether to offer interest-rate averaging. According to Dijsselbloem, customers can also benefit from the low mortgage interest rate in other ways.
Interest averaging the best solution?
Interest rate averaging is not always the best way to lower mortgage interest rates. In addition, a lower interest rate is not always beneficial.
Interest brokerage or transfer?
Interest rate averaging is sometimes seen as a cheaper alternative to transfer. This is only partially true. You do not take out a new mortgage, so the (administrative) costs are limited. The bank does, however, charge a penalty interest for the early repayment of the mortgage, just as with a transfer. However, this penalty interest is settled in the new mortgage interest rate and is therefore felt less. Here you can calculate your penalty interest.
The saving with re-transfer is often greater. After all, you can completely rebuild the mortgage, even with another lender. With interest averaging you remain the same bank and not always on the best terms. Partly because of this, it is not yet storming with the lenders who offer interest averaging. It is therefore advisable to have both options calculated.