Why choose a bullet credit?
You are already a year older but want to live in your own home for as long as possible. As a result, investments sometimes need to be made such as replacing a central heating boiler or purchasing a stairlift. Your pension may be rather limited, you are over 65 and you want to take out a loan? Then the bullet credit may be something for you.
A bullet credit is an interest-only credit (also called “End of Term Credit”). This means that you only have to pay the interest during the term. You then pay the full amount of capital on the last due date.
It is a type of mortgage loan, so the interest can be tax deductible if you are going to renovate or purchase a home. This type of loan is also often used by people who have a return home. The rent for this second home can then be used to repay this loan.
Taking out a bullet loan is also interesting if you expect a large payout. Such as the payment of a life insurance policy or the commutation of your pension savings account.
Bullet credit benefits
- You may have saved a nice amount through your life. That is why a bullet credit is good for financing a large purchase. Your entire capital thus remains within your assets, so that this money can be used for, for example, an investment.
- The monthly costs of the installment are lower because you only repay the interest during the term of the credit.
- A bullet credit is deductible from taxes. If you use this credit for a second home, you can also deduct the interest from the property income.
- Your living comfort improves because the ratio between your monthly income and expenses is more bearable. This ensures that your home retains its value for your children.
Disadvantages bullet credit
- The interest rate for a bullet credit will be higher than for a conventional loan.
- At the end of the term, you must be able to repay the entire amount of capital in one go.
Is a bullet credit for you? Make a non-binding request here and we will contact you the next day. Definitely.