1) What you’re really deciding
Choosing a mortgage isn’t about “which bank I like more”. It’s one of the biggest financial decisions you’ll make. Deep down, you’re choosing between:
- Paying a bit more today in exchange for peace of mind.
- Paying less now while accepting that the payment can change in the future.
This isn’t about predicting Euribor. It’s about understanding your situation and your limits:
- 🧭 Risk: would it stress you out if the payment rises?
- 💼 Income: stable salary vs variable income (self‑employed, bonus, commissions)?
- 🏡 Horizon: how many years do you expect to stay in the home?
Quick example (approx.): a mortgage of €150,000 over 25 years.
- Fixed: 3.5% → payment ≈ €751/month (stable).
- Variable: spread + Euribor. If the all‑in rate today were 4% → payment ≈ €792/month (can rise or fall).
- Mixed: 2.5% for the first 5 years → payment ≈ €673/month; then it switches to variable.
Do you prefer certainty (mental calm) or paying a bit less while accepting uncertainty?
2) How to compare offers (without traps)
Comparing properly isn’t just looking at the headline rate. This is what really matters:
- 📊 APR > nominal rate: APR includes fees, insurance, and add‑ons. It’s closer to the “real” cost.
- 🧾 Put a number on add‑ons: life insurance, home insurance, cards, bundled products… quantify them.
- 💸 Check fees: early repayment, switching lender, contract changes, opening fees (if any).
- 🔁 Flexibility: what happens if your situation changes in 3–5 years?
3) Fixed mortgage
The good: you always know what you’ll pay. Great if your budget is tight or you hate surprises.
The trade‑off: you usually pay a bit more today to buy stability.
Best fit: stable income, little room for shocks, or simply prioritizing calm above all.
4) Variable mortgage
The good: it can be cheaper at the start. If rates fall, your payment falls.
The risk: if Euribor rises, your payment rises. You need buffer and tolerance for volatility.
Best fit: strong finances, real monthly margin, and the ability to withstand adverse scenarios.
5) Mixed mortgage
The good: predictability at the beginning, then it follows the market. Often gives a lower initial payment than fixed.
The risk: the variable period can bite if you don’t run scenarios ahead of time.
Best fit: if you expect to sell/renegotiate before the switch, or you want a balance between cost and safety.
6) A quick framework to choose well
Before you decide, answer these:
- What monthly payment would make you uncomfortable? (run scenarios: +1 and +2 percentage points)
- How much real margin do you have each month after essential expenses?
- How long do you think you’ll stay in the home?
🎯 If you’re staying many years and don’t want uncertainty: usually fixed.
🔄 If you may sell or renegotiate in a few years: mixed or variable can make sense.
💪 If you have margin and risk tolerance: variable can be reasonable.
If you have one (or several) proposals, I can compare them using real criteria: APR, add‑ons, fees, and rate scenarios. Tell me your case here.
