Moving Abroad as a Self-Employed: Which Countries Have the Lowest Mortgage Rates?

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As a self-employed person, you have more options over where you live in the world. If you run an online business, you can pretty much operate from any country. Therefore, many self-employed people choose to live overseas, and many select countries in which they can buy properties with low mortgage rates. But which countries have the very lowest rates? Let us find out.

The Changing Nature of Mortgage Rates

Whichever country you move to, you need to be aware that mortgage rates not only differ on a daily basis depending on things like the greater housing market. They also differ depending on your individual circumstances. Factors like your income, credit score, debts and the amount of your down payment all contribute toward your mortgage rate. Generally, when your credit score is high, you will be able to get a lower mortgage rate and vice versa. Mortgage rates also vary from one lender to another, so you should always compare different mortgage lenders before you apply for a home loan. To put the following countries with the lowest mortgage rates into perspective, here are the current mortgage interest rates for the United States, at the time of writing in September 2021:

  • 3.078% for a 30-year fixed-rate mortgage.
  • 2.367% for the 15-year fixed-rate mortgage.
  • 2.595% for the 5/1 adjustable-rate mortgage.

Switzerland

To discover which countries have the lowest mortgage rates, we looked at the lowest rates on the global market for November 2020. Switzerland had the lowest rate of all. According to the Swiss National, the mortgage rate was -0.75%. Furthermore, Switzerland has had the same low-interest rate for the last five years, meaning it is a good choice for many self-employed people who want to live and work in another country.

Switzerland has plenty to offer besides the lowest mortgage rate in the world. From alpine mountains and beautiful lakes to world-class chocolate and cheese shops, Switzerland is a delightful country to live in. The only drawback is the cost of living tends to be higher than in many other countries, so you need to balance that up with the mortgage rates on offer to determine whether Switzerland is the place for you.

Denmark

Denmark’s primary interest rate is the certificate of deposit rate set by the country’s Central Bank. The mortgage rate as of November 2020 was -0.50%. While that is still a negative number and incredibly low compared to the US and other countries, the figure has increased from the previous level of -0.75%. Inflation is on the rise too. In 2019, it was 0.73% and in 2021, it is expected to be 1.1%. Still, Denmark’s mortgage rates are certainly attractive to self-employed people who are thinking of moving to Europe, and the country has much else to offer.

The capital Copenhagen is one of the best places to live in Denmark. It is home to the picturesque Nyhavn Harbor, beautiful royal palaces, cobbled streets, half-timbered houses, and the famous Little Mermaid statue, which was created in honor of Hans Christian Anderson.

Japan

You may have noticed that the countries with the lowest mortgage rates have negative numbers, unlike the US and many other nations. So, you can certainly get favorable rates by moving to one of these countries. You have more choices than just Europe, too. The country with the third-lowest mortgage rate in November 2020 was Japan, with a figure of -0.1%. Furthermore, Japan’s government is offering loans against the collateral of corporate debt, with rates fixed at 0%.

If you are looking for somewhere exotic to move to, while still getting some of the lowest mortgage rates on the planet, you should definitely consider Japan. The country has bustling cities, spectacular scenery, and plenty of temples and historic sites to visit. It is also dominated by the truly awesome Mount Fuji.