Are you caught in the middle of an F5 loan? – Real Council
We have to go back less than 3 years before an F5 loan to 0.39% was an “extremely cheap” loan.
Today, the F5 interest rate is minus 0.50%, but unlike the fixed-rate loans, one cannot simply repay the loan at rate 100. Because, unlike the fixed-rate loans, interest rate adjustment loans have no ceiling over the rate.
They must be redeemed at market rates unless the loan needs to be refinanced.
And it should not a F5 loan from 2017. In the example below, the loan must be repaid at the rate of 102.30. It causes many to stop and think of something else.
But since the interest rate on a fixed-rate loan is now down 0.5% with only 1.6 points in exchange losses and at the same time getting a lower contribution rate, homeowners with F5 loans might still have to investigate whether it is now time to change at fixed interest rates. We have figured that out.
The starting point is an F5 loan of 2,500,000 which was raised in 2017.
The interest rate was 0.39% and the contribution rate is 0.91% for 80% mortgages. If the loan is converted to 0.5%, the contribution rate is a maximum of 0.74% in Totalkredit, and if you take into account 0.15% of the customer’s crowns, you pay a net 0.59% in contributions. If the loan was interest-free, the current contribution rate would be 1.23%, but if you switch to interest-free with the Real Council model, the contribution rate after customer crowns will still be 0.59%.
The result of restructuring with unchanged maturity will be:
If the loan is repayable, it can be rescheduled using the Real Council model, at the same bond rate, interest rate and contribution rate.Thus, after-tax benefits decrease, while at the same time deducting some more.
The disadvantage is that the starting debt rises by as much as 120,000 kroner. The difference will continuously be smaller, but if interest rates start to rise, the rate of the fixed-rate loan falls and you reach the break-even when the rate is down to approx. 93. This requires an interest rate increase of approx. 0.5% compared to today.
If interest rates rise, the effect on interest rate adjustment loans is:
Of course, you can also stay in the F5 loan and see what is possible when there is interest rate adjustment of approx. 2.3 years. But what is the interest rate at that time? It may still be low and then another 5 years with low interest rates can be obtained, but what if the interest rate rises, even though more and more people say it is unlikely?
- Performance rises
- The installment falls
- The market value does NOT decrease.