Which loan should I choose?

Loans and insurance go hand in hand, so Sophie and Bertrand opt for a combined rate. They then receive a reduction of 0.75% on the interest rate. To do so, they must meet the following conditions.

In practice

They must make 10 payments per month from their ING account.

AND

They must both take out outstanding balance insurance for 100% of the amount borrowed (Sophie takes out insurance for 100% and so does Bertrand)

OR

They must take out home insurance and joint outstanding balance insurance for 100% of the amount borrowed (e.g. Sophie 25% and Bertrand 75%).

Sophie would like to opt for this kind of loan. It is the simplest and most popular option.

• Maximum duration
• 30 years
• Interest rate
• fixed or variable
• Repayments
• monthly repayments (capital and interest)
• Availability of amount

• as a lump sum when buying the building plot or property
• in instalments when building or renovating a property

Bertrand is more tempted by this type of loan. They would then only pay back the interest during the term of the loan, and on the expiry date they would pay back the whole amount borrowed. This works out perfectly, because Bertrand has an investment which will be released in 10 years' time, just before the expiry date of the loan. Using this money, he will be able to pay back the full amount borrowed.

• Maximum duration
• 20 years
• Interest rate
• fixed or variable
• Repayments
• fixed monthly payments (interest)
• on expiry (capital)
• Availability of amount

• as a lump sum when buying the building plot or property
• in instalments when building or renovating a property

Sophie's parents have bought an apartment on the coast. In order to be able to pay for this real estate project, they must sell their current home. Whilst their home is up for sale, they take out a bridging loan. Then they only pay interest until their house has been sold.

• Maximum duration
• 3, 6, 9 ou 12 months
• Interest rate
• Fixed
• Repayments
• fixed monthly payments (interest)
• on expiry (capital)
• Availability of amount

• as a lump sum

For smaller or energy-efficient renovation projects.

One year after buying their house, Sophie and Bertrand want to insulate the roof. A little later, they would like to replace the kitchen. They can opt for a renovation loan.

• Duration
• 6 months minimum
• Interest rate
• Fixed
• Amount
• 2,000 euros minimum

Sophie would prefer to pay back the same amount every month until the end of the loan term (or until the review of the interest rate if they opt for a variable interest rate). Both the interest part and the capital part change, but the total amount of the monthly repayments does not.

For the first year, their repayment table will look like this:

Bertrand would prefer to opt for variable repayments. The capital part stays the same each month, but the amount of interest falls over time. Initially, they pay a little more per month, but at the end of the loan term they pay a lot less. Ultimately, they pay much less interest than if they were to opt for fixed repayments.

For the first year, their repayment table will look like this:

If Sophie and Bertrand opt for the Bullet-loan or Bridging loan, they will only pay interest during the term of the loan. The capital is then repaid in one lump sum at maturity.

You can pay back a loan, in whole or in part, at any time. Repayments amounting to less than 10% of the capital can, however, only be made once per calendar year.

Each time you choose optional repayments, you must pay a reinvestment fee. The charge is equivalent to three months' interest. You do not have to pay this fee if:

• the repayment is made via outstanding balance insurance following the death of the borrower
• your loan is an ING Bridging Loan.