There are 2 common types of loans, annuity based and linear based. You will find most relevant aspects of each loan stated below.
Aspects of annuity based loans:
- interest cost component (in green) will decrease
- repayment cost component (in blue) will increase
- net monthly cost level will increase if income is taxed in the Netherlands
- immediate repayment from the start of the loan period
- total costs of repayment higher than compared to similar linear loan variant
- at the expiry date of the interest fixed period your monthly cost level will change
Aspects of linear based loans:
- interest cost component (in green) will decrease
- repayment cost component (in blue) remains equal during loan period
- Initial monthly payments higher than similar annuity based loan but decreasing in time
- gross monthly cost level as well as net monthly cost level will decrease in time
- immediate repayment from the start of the loan period
- total costs of repayment lower than compared to similar annuity based loan variant
- at the expiry date of the interest fixed period your monthly cost level will change
For other types of loans please contact us.
