You can take out a mortgage up to 18 months in advance. If you regularly check the interest rate forecast and extend your loan at the right time, you can get a good interest rate. Pay attention to the terms and notice periods or the repossession conditions of the mortgage you want to extend. If you've split the mortgage into multiple installments, you should make sure that the overall funding still matches your risk profile (stable, balanced, or market-oriented) when you extend a tranche.
Before extending the mortgage, you should ask yourself if there is something fundamental that might change in your life in the near future:
- Do you want to start a family?
- Do you want to start your own business?
- Do you want to plan your estate with foresight?
- Do you want or need to pay off a mortgage?
- Are you planning any renovations, improvements or alterations?
- Do you need a higher mortgage for these measures?
Do you want to pay off a mortgage, i.e. pay it off at maturity or take out a mortgage with another provider? In this case, you need to know the terms of the mortgage you want to redeem. Although it usually comes at a cost, an early redemption can sometimes be a good idea because you can get a better mortgage.
