Loan duration

The loan duration directly impacts the monthly payments and therefore the amount that can be borrowed. Based on equivalent borrowed amount, the longer the loan period, the lower the monthly payment. But it should be kept in mind however that, the longer the loan duration, the more expensive the loan is in terms of total interest paid.

Key points:

  • Affordability increases with loan duration
  • The longer the loan duration, the higher the cost

€ 200 000

Duration (years) 10 15 20 25 30
Rate* 1.20% 1.40% 1.60% 1.70% 1.80%
Paid interests € 12 300 € 21 900 € 33 800 € 45 600 € 59 000
Monthly payment € 1 700 € 1 230 € 970 € 820 € 720

€ 500 000

Duration (years) 10 15 20 25 30
Rate* 1.20% 1.40% 1.60% 1.70% 1.80%
Paid interests € 30 800 € 54 600 € 84 600 € 114 100 € 147 500
Monthly payment € 4 420 € 3 080 € 2 440 € 2 050 € 1 800

€ 800 000

Duration (years) 10 15 20 25 30
Rate* 1.20% 1.40% 1.60% 1.70% 1.80%
Paid interests € 49 400 € 87 400 € 135 300 € 182 600 € 235 900
Monthly payment € 7 080 € 4 930 € 3 900 € 3 280 € 2 880
  • Indicative rates

Extending the duration of a loan becomes relevant to increase its affordability while maintaining the monthly payment below a threshold of about 40% of the household's net income. The loan affordability will be subject to the lender's assessment of the financial situation of each household: remaining money after monthly financial commitments (debt charge and family charge), down payment available for the acquisition, quality of employer and potential of career improvement, other personal assets, ...

Nexfin helps you to define the repayment terms that will allow you to carry your project with total peace of mind!