In today’s world, aren’t these deducted from earned income if capital income is lacking?
I don’t actually have any personal experience with this…
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I am very much on the same page as you. That’s a good point about how many people think a mortgage should be paid off within one’s lifetime. I personally feel that this is a harmful Finnish mindset that we should try to move away from; I would certainly aim to take out the maximum length loan even if I were, for example, 70 years old.
Even now, I believe loans that are actually paid off over time are in the clear minority. I suspect that the vast majority of loans are settled upon the sale of the property when people separate, move, etc.
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Can anyone say what the latest age to pay off a mortgage is from a bank’s perspective, or can someone in their forties still update their loan to a 40-year term? My 7-year fixed interest rate ends in February, and at the same time, I intend to update from the 6-month Euribor → to the shortest available and explore the possibility of extending the loan term and investing the difference.
My margin is already 0.45%, so I doubt I will get any significant changes to that.
My parents are in their eighties and they have more mortgage debt left than years of life remaining. In euros, it’s over €100k. The loan was taken out 6 years ago. So, it is possible to get one even at an old age. I suppose the bank assumes that the estate will handle it?
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I put my mortgage (160k remaining) out for tender and received an offer from another bank for a 0.3% margin + 3-month Euribor with zero origination or processing fees. I messaged my current bank to see if they wanted to make a counter-offer. 10 days later, they replied saying they were interested and would call me about it. 2 weeks after that, I finally got the call, which started with: “Your 0.47% is already competitive, so it cannot be lowered.”
They also wouldn’t allow changing the reference rate without costs, nor would they meet me halfway on anything else. It remains a bit unclear what that “counter-offer” I waited nearly a month for actually consisted of? This is not the way to do it, Danske.
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@jarree which bank did you get that better offer from?
In our last round, Nordea was the cheapest, although they can’t be praised for their speed either.
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I was just in negotiations with Aktia regarding this, for a loan slightly under €150k, but I figured it wouldn’t matter since even their example calculation was based on €140k.
The result was a loan offer conditional on me investing at least €50k into their funds, which have double the fees compared to others.
No deal was made, but OP dropped their margin to 0.2 because of this (if you factor in the bonuses).
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What are you calculating the share of the bonuses to be, or what is the margin actually written in the loan agreement? I’m wondering if it’s worth putting my current 0.40% margin out to tender.
OP bonuses at 0.4% - tax 30%, meaning 0.28% is the calculated value.
0.45% was my own starting level as well.
With small loans, the changes in euro amounts are starting to be quite small, but the idea is that when applying for the next loan, the old margin would serve as a sort of ceiling that the new offer shouldn’t exceed.
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