Also for an affordable annuity mortgage DGA Financial Advisors is the place to be. Together with you, we will find the mortgage that best suits your personal situation. Our experienced advisors are happy to help you!
Because DGA The Hague works completely independently and is therefore not bound to any bank or insurance company, you are assured of objective advice. In addition, we can offer you tariffs that are among the lowest in the Netherlands.
You are always very welcome at our office in The Hague. Or would you prefer one of our advisors to visit you? Then we would be happy to make an appointment with you!
Many customers in The Hague, Scheveningen, Voorburg, Leidschendam, Voorschoten, Stompwijk, Zoetermeer, Nootdorp, Rijswijk, Wassenaar, Pijnacker, Delft and Wateringen have obtained an affordable annuity mortgage through DGA Financial Advisors. Of course, we are also happy to help you!
“Annuity” is another word for “fixed amount.” Those who take out an annuity mortgage pay a fixed amount each month (apart from any changes in interest rates). This amount consists of two parts: interest that you have to pay on the outstanding loan and the repayment, which is used to repay the loan.
Although you always pay the same monthly amount, the distribution of this amount between interest and repayment changes over time. In the beginning, most of your monthly amount consists of interest and only a small part of repayment. As the term progresses, an increasing part of the monthly amount is used for repayment and an increasingly smaller part for interest payments. The outstanding loan is therefore getting lower because you repay the borrowed money step by step. As the loan balance decreases, you will pay less interest, and an increasing part of your fixed monthly amount can be used to repay the loan.
In practice, with an annuity mortgage with a term of 30 years, it takes about 22 years to repay half of the mortgage amount. The remaining half is repaid in the last 8 years, as you pay significantly less interest. Your monthly payment is structured to ensure that the entire mortgage is paid off by the end of the 30 years - nothing more, nothing less.
Although you pay a fixed amount each month with an annuity mortgage, the actual cost increases slightly over time. This is because only your interest costs are tax deductible. And because you pay less interest over time, the tax benefit is also gradually decreases.
This type of mortgage is being used less frequently. Mortgages that are more fiscally attractive in the long term, such as savings mortgages, are now much more popular.
An annuity mortgage is suitable for individuals who have a positive long-term financial outlook, such as those at the beginning of their careers.
Thanks to the tax deduction, your payments will be relatively low during the early period. Later, you will lose more net money, but you will probably have a higher income to cover the higher costs.
An annuity mortgage can also be interesting if you are unable to benefit from the interest deduction. This is the case, for example, if you use the mortgage to finance a second home.
