At the beginning of this year, the rate that private individuals paid when they took out a fixed-rate loan through Immotheker Finotheker with one of the banks the broker worked with was 1.60 percent on average if they borrowed between 80 and 100 percent of the value of their property. Today it is already 2.59 percent. It has been more than five years since the interest on mortgage loans was so high.
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In just a few months, borrowing has become a lot more expensive. A loan of 200,000 euros over twenty years leads to a monthly installment of 973.24 euros at an interest rate of 1.60%. At a rate of 2.59%, that is already 1,065.64 euros. At the end of the term, the borrower will now have paid a total of EUR 55,752.93 in interest. Whoever took out the same loan a few months ago, still got away with 33,578.09 euros in interest. That is no less than 22,174.84 euros more.
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But the rise in interest rates is also not a good thing for the Belgian state. Ten-year government bond yields rose to 1.40 percent for the first time since September 2014.
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