Don't miss out on profits on your mortgages
Have you ever considered whether you have missed a golden opportunity to convert your mortgage? Or whether you have converted in the most optimal way?
- You will reduce your outstanding debt
- Or a lower payment on your loans
The market is difficult to understand, and no one can predict future interest rate movements and bond prices. But when interest rates fluctuate, the logical market mathematics comes into play. Fluctuations up or down will give you the opportunity to achieve a lower payment or a lower outstanding debt on your loan.
In other words, you can change your mortgage from being your largest liability to becoming your largest asset. You do this by completing conversions when it is worthwhile. Therefore, you must also be ready when the window opens. Because the opportunity can quickly be missed again.
Change from passive to active debt management
You can go to the market and make your conversions yourself or keep an eye on whether your bank suggests you convert. But how often has your bank contacted you with suggestions to refinance your mortgage? And are you prepared to act at very short notice? It can easily become too passive to exploit the opportunities of market mathematics.
- You need to know the market mathematics
- You need to be ready to convert when the window is open
If you want to ensure active debt management, you can choose to let Howden Realkreditrådgivning keep a constant eye on your mortgage. This is called active debt management because they will contact you immediately when it is worthwhile to restructure your loan. You can of course still say no, but then you are also saying no to lower payments or lower outstanding debt. If you say yes, Howden Realkreditrådgivning will carry out the agreed conversion.
Start registration for monitoring your loans and active debt management (in Danish)
Is there anything to save at the end of the day?
Active debt management is not a guarantee that you will be debt-free in a few years, but it is an opportunity to use the market's logical mathematics to, for example, reduce your debt considerably. The possibilities naturally depend on future interest rate fluctuations, which cannot be predicted.
The following customer journey from 2019 to 2022 illustrates a process with active debt management. Here, the remaining debt was reduced by a total of DKK 585,000 through six restructurings. Please note that changes in the service are not included in the example.
• 2% loan of DKK 3,500,000 taken out in January 2019 at a rate of 98.9
➜ Converted to 1.5% in June 2019: Remaining debt up DKK 13,000
➜ Converted to 1% in October 2019: Remaining debt up DKK 65,000
➜ Converted to 2% in March 2020: Remaining debt down DKK 195,000
➜ Converted to 1% in October 2020: Remaining debt up DKK 97,000
➜ Converted to 2% in November 2021: Remaining debt down DKK 180,000
➜ Converted to 4% in May 2022: Remaining debt down DKK 385,000
How to proceed with active debt management
IDA has entered into a cooperation agreement with Howden Realkreditrådgivning, offering digital monitoring and active debt management with a member discount. Howden Realkreditrådgivning has provided active debt management to private homeowners since 2003, where they have developed and continuously strengthened their concept for monitoring and restructuring mortgage loans.
Read more about digital monitoring of your mortgages (in Danish)
Read more about active debt management at Howden Realkreditrådgivning (in Danish)
Howden Realkreditrådgivning considers each individual restructuring in a larger perspective and positions the loan so that it always benefits you regardless of interest rate developments. When interest rates rise, you can get a lower outstanding debt by restructuring your loan to a higher interest rate. When interest rates fall again, you can restructure to a lower interest rate and thus get a lower payment based on the lower outstanding debt.
As an IDA member, you get a 50% discount on the subscription for digital monitoring / active debt management at Howden Realkreditrådgivning:
➜ You only pay DKK 99 per month for the subscription
➜ There is no commitment to the subscription
If you want to use the agreement with Howden Realkreditrådgivning, you will be connected to a subscription that monitors your loan around the clock. Every time there is an opportunity for an advantageous restructuring up or down in interest rates, Howden Realkreditrådgivning will contact you immediately. This way, they can use active debt management to restructure your loan after your approval.
Any questions?
Contact Howden Realkreditrådgivning on tel. 33 13 79 50 or email realkredit@northrisk.dk to learn more about your options for digital monitoring and active debt management.
Can you use active debt management if you have an adjustable-rate loan?
No, it is not possible, but it can still be an option with some steps that still make it possible. Howden Realkreditrådgivning has these three steps that you should consider in that situation.
- Create an exit strategy so that you know when you want to get out of your loan
- Have a professional monitor your loan for you
- Be contacted when the interest rate has reached the desired level
Start signing up for monitoring your loans and active debt management (in Danish)
Is active debt management something for everyone?
No, it is not, because there are also feelings such as security and peace of mind in financial planning. For example, if you have a fixed-rate loan that you are happy with and that fits well with your personal finances, you can easily stay in that loan. Such a loan can provide security in knowing future payments.