We live in a world where money is definitely seen as the gateway to success. It’s really true when they say, “money makes the world go round.” When it comes to purchasing a home or taking out a business loan, finances can play an important role in determining your eligibility and what kind of interest rate you will be stuck with. Most people who have gone through the process will agree—the lower the interest rate, the better!
Well, when it comes down to interest rates, they affect multiple aspects of a loan. Not only does the interest rate determine how much your monthly payment will be, but it also impacts how much it will cost you to take out a mortgage. While interest rates can vary from individual-to-individual, they can also change from country-to-country.
Loan interest rates are set by the country’s central bank funds rate, which is the rate that the banks can borrow money from the country itself. If the central bank fund rate is low, your mortgage interest rate will be low. However, if the rate is high, you’re looking at much higher interest rates. It’s also important to point out that inflation and a country’s credit rating also impact these factors as well.
If you’re looking to buy a home in the near future, or maybe you’re looking to take out a loan for a business, we thought it would be beneficial to provide a list of the countries with the lowest interest rates in 2017. While moving internationally may not have been your goal, you’d be surprised at how cost-effective it can be to pack your bags and go on a globe-trotting adventure!
We used the Global Interest Rate Monitor (GIRM) to pull together a list of 20 countries with the absolute lowest central bank interest rates. If you’re thinking of your next big purchase, it may be wise to consider taking out a loan in one of these countries due to the accessibility of borrowed funds.