Investment horizon: definition
The investment horizon corresponds to the period during which you expect to keep your property and your mortgage (for example 5, 10 or 20 years). This timeframe influences the choice between fixed rate, SARON, contract term and amortization strategy.
Choosing your rate based on your investment horizon
A long horizon often lends itself to reassuring fixed rates or hybrid strategies, while a shorter horizon may justify more flexibility. Clarifying your horizon helps you choose a rate structure that is consistent with your life plans (family, career, resale, retirement).
Investment horizon and life plan
A couple in their thirties buys a house but plans to move abroad in 5 to 7 years. Their investment horizon is therefore relatively short. Rather than committing to a 15-year fixed rate with heavy penalties in the event of early exit, they opt for a combination of a shorter fixed rate and SARON to keep flexibility.
