Neobank Bunq starts issuing mortgage loans

At the end of last year, Ali Niknam, founder and CEO of online bank Bunq, announced the launch of mortgage loans. To attract customers, he promised optimal credit terms and consideration of the application in just 24 hours. And finally, on May 30, 2022, the mortgage program starts.

Mortgages Easy Mortgages

In neobank Bunq, clients can take out linear and annuity mortgages, as well as interest-only mortgages. Recall that a linear mortgage (lineaire hypotheek) provides for a monthly repayment of a fixed loan amount that covers interest and part of the body of the loan; annuity mortgage (annuïteiten hypotheek) involves a monthly payment of a fixed amount, but first the borrower repays a small loan amount and higher interest, and then more of the loan body and less interest; interest-only mortgage (aflossingsvrijehypotheek) is a special type when the borrower repays only interest, not the loan. If you have questions about mortgages, Nalog.nl loan consultants will help you find answers - contact!

Important! Anyone applying for an Easy Mortgages mortgage loan can expect to have their application reviewed within 24 hours of submitting the required documents. Ali Niknam noted: “I remember how incredibly stressful it was for me to wait for a response from the bank when I bought my house”. On average, applications for a mortgage in the Netherlands are considered 4-6 weeks. Reducing the wait to 24 hours is a revolutionary step.

NHG Mortgage Interest Rates

Initially, Bunq will provide mortgages with NHG insurance. About, what is NHG (National Mortgage Guarantee), read our Article.

Note! With NHG mortgages, homebuyers are well protected against unforeseen circumstances (particularly if a home needs to be sold due to job loss, disability, divorce, etc.). At the same time, in 2022, an NHG mortgage can be issued in the amount of no more than 355 euros. Borrowers are required to pay a one-time fee for this insurance in the amount of 000% of the price of the property. On the other hand, lenders usually do not charge higher interest rates on mortgage loans, and therefore the interest rate on such loans is lower.

NHG mortgage rates from neobank Bunq lower than market average. Mortgage loans with NHG are financed by the bank with the savings of its customers. Along with this, non-NHG mortgages will be funded by Tulp Hypotheken, which Bunq works with. Tulp is backed by London-based investor TwentyFour Asset Management. And mortgage rates without NHG will be completely different.

Bunq is actively promoting its mortgages with NHG. Interest rates are 2,71% and 3,15% per annum for mortgage loans for 10 and 20 years, respectively. According to Van Bruggen Adviesgroep, the average market rates are currently 2,89% and 3,28% for similar term mortgages. Bunq's NHG mortgages are also competitively priced in terms of the highest and lowest interest rates on the market. According to currentrentestands.nl, the lowest interest rate for a 10-year NHG mortgage is 2,7% and the highest is 3,44%. For 20 years, respectively, 3,11% is the lowest and 3,82% is the highest.

Note! Rates on other Tulp-funded Bunq mortgages are less competitive. Mortgages without NHG are offered at 3,51% for 10 years and 3,8% for 20 years. Back in December, Ali Niknam said Dutch digital bank Bunq aims to be “not too expensive and not too cheap, but transparent” about mortgages.

Publication Date: 01.06.2022