Trend towards security: fixed rate dominates
In the last quarter of 2023, 97.3% of borrowers chose a fixed-rate mortgage loan. For the full year 2023, the percentage was 95.9%. These figures highlight a growing trend towards security among borrowers, according to Febelfin.
Only 2.7% of borrowers opted for a variable interest rate with an initial period of interest rate fixation between 3 and 10 years. The majority of Belgian consumers are therefore sticking to the security of fixed interest rates, which should come as no surprise in today's real estate landscape and volatile property market.
Comparing interest rates
Although the majority opt for fixed interest rates, it is interesting to look at variable rate loans. For a 20-year loan with an interest rate fixed for 10 years, one currently pays an average of 3.16% interest. Comparatively, an interest rate fixed for 25 years will pay an average of 3.25% interest. In contrast, the average interest rate for a loan with annually changing interest rates is currently 3.96%. Despite the higher variable interest rate, this option can still be interesting.
