Category Archive : Uncategorized

Taking out a loan as a student?

As a student, the shortage of money can be enormous – depending on how extensive or not extensive the parental help, the support or the wages of the part-time job. So why not take out a loan as a student? Going to the bank is basically quick, and there are also numerous opportunities on the Internet to make money more or less quickly – but do these opportunities open up to students?

Unfortunately, you have to put it this way – in the eyes of the banks, students are hardly better off than pensioners or even unemployed people. This is simply due to the fact that they do not have a fixed income – more or less regular support from their parents’ home is not counted as income.

Take out a guarantee loan?

Take out a guarantee loan?

In principle, however, students, like any other citizen, have the option of taking out a guarantee loan. Banks usually speak of a loan with a second borrower in order to avoid the term deterrent loan. The second borrower is to be held fully responsible for the loan amount taken out, even if the loan amount itself went to the first borrower. In order to be able to approach the named guarantor, the bank does not have to take legal action against the first borrower; a default is sufficient.

Education loan targeted for students

Education loan targeted for students

Educational loans are sometimes intended for schoolchildren, but primarily for students: it can either be taken out through bank, ie as a educational loan, or in some cases from other banks or savings banks. If the education loan is involved, the maximum loan amount is 7200 dollars, which are paid out in monthly installments of between 100 and 300 dollars. However, one of the prerequisites for this educational loan is that you are already in your main studies – a hurdle that the savings banks and banks do not provide for their educational loans, but require a certain credit rating.

Conclusion: Basically, students are better served by having family members help them out privately or looking for additional income that does not have a negative impact on their studies. However, if this is not possible, educational loans are an attractive way to still be able to finance your studies.

Fair car loans – the way to a dream car

Cars are often financed these days – no wonder, because who has thousands of USD in his account that he can spontaneously invest in a car? Most car dealerships offer the possibility to directly take out a car loan through a corresponding “car bank”. This means you have everything from a single source. Many car buyers still go to the trouble of getting an offer for car financing from their house bank in order to be able to carry out a car loan comparison. However, it is easy to forget one aspect: Both the car dealership and the house bank around the corner do not usually offer the best conditions. That means high cost of the loan for you. In contrast, the car loan comparison on the Internet is the better option.

The loan comparison on the Internet

The loan comparison on the Internet

If you compare the loan offers on the Internet, this has several advantages for you:

  • always current information
  • greater choice of providers
  • more favorable conditions through greater competition

The larger selection of providers is particularly noteworthy on the Internet. Here you will not only find the conditions for a car loan from a car bank, but also loan offers from numerous direct and internet banks. The latter usually convince with much more attractive terms. They are characterized by lower interest rates, lower fees and extremely fast processing of loan applications. Direct banks conduct a large part of their business via telephone, internet and the post and can therefore save themselves the maintenance of expensive branches. Many banks pass on the money saved directly to customers – in the form of lower interest rates and lower fees.

A car loan comparison is therefore always worthwhile. By the way, you do not have to do a lot of work: our car loan calculator only needs a little information about your desired loan and it already determines the providers who offer the best conditions for your situation. It will be very easy for you to find a car loan cheaply and conveniently.

By the way: If you have the money paid out in cash, you can even bargain over the price of the vehicle with your car dealer, since you can usually get a cheaper price as a cash payer.

Quick and easy to apply for a loan

Quick and easy to apply for a loan

If you want to apply for a car loan from your house bank, you should better prepare yourself for a large number of formalities. Applying for a car loan is much easier with a direct bank. You sit in front of your computer, carry out a comparison and can call up the application of the respective bank directly from the comparison result, fill it in and send it via the Internet. As far as the online preliminary check is positive, you can either print out the correct application directly or you will receive it by post. All you have to do is attach the required evidence, such as a pay slip, and submit the application by post – a cheap car loan can really work easily.

Conclusion

You can get auto loans at almost every bank. However, there are extreme differences in terms. It is therefore advisable to carry out a comprehensive comparison using a credit comparison calculator before concluding the transaction via the auto or house bank.

Mortgage and government loan rate from the Youth Program

Since last August, the state has been contributing through the State Housing Development Fund to young families for the acquisition of new housing or for its reconstruction, a favorable state mortgage. A loan from the Youth Program can be used to finance 80% of the price of the acquired real estate ; a maximum of 1.2 million dollars can be borrowed for the purchase of an apartment or 2 million for the purchase of a house. The state lends no more than 300 thousand dollars for the modernization of the apartment. The applicant must have 20% of the price of the property from its own resources.

 

The binding conditions of “advantageous” mortgages

home loan

The conditions for drawing a state loan for housing are considerably restrictive. The biggest barrier is the fact that the maximum amount offered does not correspond to the real prices of apartments and houses . In Prague, where real estate prices are highest, the price per m 2 of a new apartment is around USD 100,000. An apartment of 60 m 2 is thus 6 million dollars . Even assuming its own savings of 20% of the purchase price, the required loan amount would climb up to 5 million dollars. Thus, the loan loses its significance to practically all those interested in owning housing in larger cities , where property prices are significantly above the maximum possible state loan .

 

Conditions for obtaining a state loan for housing

house loan\

  • Age requirement – the first rule is that the applicant must be under 36 years of age. Applicants may apply no later than the day before their 36th birthday. Once she exceeds this age, she will not receive the loan.

  • Marriage, partnership – spouses and registered partners, unmarried couples or single parents can apply for a loan. For spouses or registered partners, it is sufficient to provide a copy of the marriage certificate or registration for the application, for unmarried couples or single parents it is necessary to care for a child under 15 years of age.

  • Ownership condition – the applicant must not be the owner or co-owner of a residential property (not applicable to a modernization loan) or a tenant of a cooperative flat at the time of filing a home purchase loan, as his spouse or registered partner must not or a member of a housing cooperative and at the same time a tenant of a cooperative apartment.

  • Maturity of the loan – in the case of a state loan for the acquisition of housing, the maturity is a maximum of 20 years. In the case of a classic bank mortgage, the maturity can be set up to 30 years. A shorter maturity of state loans thus automatically means a higher monthly payment.

 

Is the interest rate still attractive?

Is the interest rate still attractive?

The interest rate on the state loan is set at the basic European Union reference rate for the Czech Republic , but at least one percent. At the time of launching the program last August, the rate was 1.12%. Compared to market rates, this was a really unbeatable interest rate a year ago.

Today the situation is different. The rate has been 2.27% since August. The average mortgage interest rate has been declining for several months in a row, and the competitive struggle of banks and the Saversline Bank’s forecasts have not yet contributed to any significant increase in rates. According to Saversline Bank data, the interest rate on mortgage loans was 2.61% in August.

 

The advantage of the state loan – deduction for the child born

The advantage of the state loan - deduction for the child born

The main advantage of the state loan for young people is undoubtedly the deduction of 30,000 dollars from the principal for each child born or adopted during the duration of the credit relationship. This is a bonus that no bank on the domestic banking market will provide you with a mortgage loan.

 

Interest in government loans is declining

Interest in government loans is declining

The above factors lead to the fact that the program of the State Housing Development Fund is not as interested as it was expected last August, when even queues of candidates were formed in front of some branches. This year a total of 950 million dollars are earmarked for housing support for young families. At the beginning of October, applications worth just over USD 400 million were granted . More than three fifths were intended for the construction of a family house, 18% for the purchase of a family house, 12% for the purchase of an apartment and 8% for the modernization of dwellings.

Need a mortgage?

Do you consider buying real estate or building a different house ? If you want to be sure that your funding will run smoothly and in order, contact the experts who will assist you in arranging your mortgage loan . Arrange a meeting with our mortgage broker and you will learn everything you need.

Credit for a car – How to apply?

 

Ongoing loan for a car

Ongoing loan for a car

For the variant without down payment and final installment, all of the lenders mentioned are eligible. In this case, it should be noted that car dealerships and the car banks connected to them generally offer cheaper interest rates on a car loan, even for used cars. At first glance, therefore, the motor vehicle loan that the dealer arranges appears to be the first choice if only the interest rate is considered. Branch and direct banks also offer relatively low-interest motor vehicle loans, the terms of which are always more favorable than consumer loans for free use.

This is due to the collateralization of a car loan via the Kfz letter, which remains with the bank. For comparison: In autumn 2014, branch and direct banks offer vehicle loans at interest rates of 3.9 to 4.8 percent, for new and used cars alike, while non-functional consumer loans range between 4.0 and 8 depending on the creditworthiness of the borrower, Interest of 0 percent.

Car dealers and banks

Car dealers and banks

Car dealers and banks have long been paying zero percent interest on new car financing, and used cars can have a rate of 1.0 to 2.5 percent. At first glance, the car dealerships are at the top when comparing interest rates, but car buyers can use the credit from another bank (often their own bank), which is transferred to them as cash, to negotiate a cash payer discount with the car dealer, which more than compensates for the higher interest rates, This discount is 20 percent and more for new cars, and up to ten percent for good used cars. Here are two examples:

  • A new car costs 25,000 USD and would be financed without interest in the dealership. So the loan for the car obviously doesn’t cost the buyer anything. Nevertheless, he inquires at his house bank about a motor vehicle loan and could get it for 4.5%, while the dealer promises him a 20% discount when paying in cash. The buyer chooses the house bank loan and runs the financing for five years. At a monthly rate of $ 466.08, the interest costs total $ 2,964.53. The retailer’s cash discount would be 5,000 USD and the savings would be 2,035.47 USD.
  • For a used car with a price of 12,000 USD, the car dealer issues a loan at 2.5 percent interest through its affiliated bank, which, with a term of three years and a monthly rate of 346.34 USD, causes interest costs of 468.11 USD. The house bank in turn gives the buyer a loan for a car at 4.5 percent interest, the costs for a three-year term and a monthly installment of 356.96 USD total 850.67 USD. The dealer would give the customer a 10 percent discount for a cash payment, the savings are calculated as follows: Cash price minus discount = $ 10,800, i.e. savings of $ 1,200 minus interest rate difference between branch and car bank loans (850.67 – 468.11 = 382.56 USD), thus total savings on the house bank loan of 1,200 – 382.56 = 817.44 USD.

Cap Loan: Loan with an interest cap

In principle, a so-called cap loan is a loan in which the interest is not fixed but variable. The interest cap represents a kind of security for the borrower, which is intended to contain the risk that could result from possibly rising interest rates. The cap loan is primarily used for real estate financing, the borrower has to pay a cap premium.

A loan with variable interest rates means that the interest rate is adjusted to a certain reference interest rate either monthly, quarterly or semi-annually – this is usually the lender bank: if the interest increases, the interest rate on the loan increases, the interest rate falls, the benefit is passed on to the borrower as well. The interest rate cap prevents the interest rate on the loan from rising above a certain set limit, even if the lender bank has risen to this extent.

Where exactly the upper limit of interest is set depends primarily on the term: the longer the loan is taken out, the higher the cap is set. However, it is possible to convert the cap loan into a fixed rate loan.

Cap loans and special repayments

Cap loans and special repayments

 

Special repayments provide the borrower with additional flexibility, and even with cap loans special repayments are usually provided for or can be agreed with the bank, even without additional costs, especially if the special repayments are made when the interest rate adjustments are made. This is an advantage because it allows the borrower to bypass any high-interest rate phase and repay the loan early without having to pay a prepayment penalty.

Flexible special repayments

Flexible special repayments

 

In particular for the interest cap, but also for particularly flexible special repayments, the borrower has to pay a kind of insurance premium, so he pays a premium on the loan interest rate that is normally applied – the amount of the premium can be quite large , because it depends on the interest rate difference at the interest rate cap and the term of the floating rate real estate loan.

Conclusion: A cap loan minimizes the risk that exists with loans with variable interest rates, it is primarily aimed at borrowers who can more or less expect to have the means to repay the loan in the foreseeable future. Unfortunately, a financing comparison for cap loans is rather difficult, since many different factors, such as the possibility of making special repayments, adjustment dates, the upper limit of interest and the interest conditions, must be taken into account in the comparison.

Housing Loan Austria – Apply for Housing Financing

Having your own roof over your head: that is the wish of many people in Austria. Home ownership is often high on the list of unfulfilled dreams. Given the low interest rates on the market, buying a house or apartment has never been easier. Experts believe that the cost of housing loans will remain attractive for a few more years. That is why it is now more worthwhile than ever to take out a home loan. But what do you need to know?

How does a home loan work?

How does a home loan work?

A home loan is intended for people who want to buy property. The purchase price is in the lower six-figure range, and this amount is not payable for most people without a loan. With a residential loan you finance the purchase price and become the owner of the property. From a legal point of view, the owner is the financing bank, which receives a mortgage from which it can meet its claim if the borrower is in arrears with the payment of its installments. As long as this does not happen, a home loan over many years is a safe and predictable way to finance the purchase price for the dream house. In principle, a residential loan is nothing more than a long-term loan. Nevertheless, it is somewhat more complex than a classic installment loan. Because of the long running time, it is not suitable for everyone.

Who is a home loan suitable for?

Who is a home loan suitable for?

Of course, a residential loan is primarily intended for people who want to purchase and finance residential property. A distinction must be made between personal use and rental. On the one hand, this loan is very suitable for people who want to stay in one place for long periods for private and professional reasons and who therefore want to buy a property there for their own use. Anyone who believes that they are likely to live permanently in a specific location can consider buying a property. On the other hand, if you are not ready or it is not suitable for professional reasons to permanently fix yourself, buying a property for your own use is usually not the right way. Then it can be better to live for rent and not take on the burden of a home loan. As an alternative there is still the rental of the property. A home loan is also an option. If this option is a viable option, you have to know that managing a rented property involves a certain amount of time and money. Those who cannot or do not want to make this effort should not invest in this type of capital.

What are the advantages of a home loan?

What are the advantages of a home loan?

The greatest advantage of this loan for the borrower is surely that he can pay the purchase price for his dream property immediately. So he doesn’t have to save money for many years and pay rent at the same time. The home loan makes the process of buying a house very easy for the borrower: he takes out the loan, the bank transfers to the seller, the buyer moves into the property and repays the loan. If the residential loan is concluded with a fixed interest rate, the borrower also has the advantage that his loan rate remains unchanged during the borrowing period. So he has a high degree of planning security and knows how much money he has to spend each month on the installment. The bank may not change the interest rate during the borrowing period. As a result, costs remain stable over many years, even if market interest rates rise.

What are the disadvantages of this loan?

What are the disadvantages of this loan?

The biggest advantage is also the main disadvantage of the home loan. The borrower is committed to a monthly repayment for many years. Even if something changes to the detriment of his financial situation, if he becomes sick, disabled or unemployed and earns less, this rate must be paid. There is insurance against disability, and unemployment provides state support for a period of time. Nevertheless, this support is significantly less than your usual income. Regardless of this, the credit installment continues to be paid. Even if the borrower has to change his location and wants to live in a different place for rent, the loan installment is still to be paid. In this case, the rental of the property is usually the only option because it is financially impossible for most consumers to pay rent and loan installments in parallel.

Which banks grant housing loans?

Which banks grant housing loans?

Anyone looking for a loan at low interest rates must compare them. In principle, you should contact your own house bank or an on-site bank with branch service or a direct bank. A home loan is a fairly complex loan. At this point it differs somewhat from a classic installment loan. This is why many consumer protection experts recommend that you do not take out a home loan without prior personal advice. Of course, this loan can also be taken out after a telephone consultation or after an email contact with a direct bank. However, if you have no experience with residential loans and do not know exactly what the optimal loan should look like, you would be better advised to seek a personal conversation with a local bank advisor. Regardless of whether you want advice in person, by phone or by email, there are some helpful tips on how best to prepare for a credit meeting. You should know and take these to heart to find a loan according to your own ideas that fits the individual options exactly.

What should you look out for in a credit discussion?

What should you look out for in a credit discussion?

It is best to get a sample offer in the first conversation that meets the requirements of the Consumer Credit Act. This is standard information that must be issued for every loan across Europe before it is signed. This form contains the most important basic data and the conditions for the loan. Although they are non-binding and are subject to creditworthiness checks, you can use this form to be certain early on which conditions the bank requires.

If you have this form given before the first interview, you can formulate your questions in a targeted manner and ask them in conversation. One should pay particular attention to the insurance policies that the bank requires in connection with the housing loan. This can be, for example, fire insurance or residual debt insurance. If such insurance is required, you should obtain several offers from an insurance expert.

The banks’ offers are often created by an in-house insurer or a cooperation partner, which are not necessarily particularly cheap. If a borrower decides to close with another borrower or even with a guarantor, it is important to clarify the conditions under which a borrower can withdraw from the loan. It is important for the borrower that he knows his right to get a binding draft of the contract for review before signing the contract. The final terms and conditions of the bank must therefore be specified in this draft contract. He should check these carefully and – if necessary – also question them in a second conversation. Only then do you decide whether to take out a residential loan with this bank.

What are the costs of the housing loan?

What are the costs of the housing loan?

As a consumer, one probably thinks first of all of the usual interest on the loan, which depends on the market level. But there are still some additional costs that you should know because they also affect the interest rate. The additional fees include, for example, the costs of entering the lien in the land register. They are 1.2 percent, and the borrower cannot influence this himself. If the bank evaluates the property, a fee also applies. In addition, there are the costs for the notary, where the purchase contract is certified. Additional costs may be incurred for interest on arrears, for an early payment if the contract is to be terminated prematurely, for an agency commission, for expenses in the event of a necessary change in registered collateral and for fees for maintaining an account.

The list of additional costs for a home loan is therefore significantly longer than for a classic installment loan. For this reason alone, consumers are well advised to take a close look at the individual items and compare the costs.

How do you find a cheap housing loan?

How do you find a cheap housing loan?

Anyone looking for a home loan at low interest rates must compare the offers. There is no way around this, because the offers of the banks differ very clearly. This is because lending is an important service for banks where they make money. That is why they are always looking for solvent customers and attract them with attractive offers. This creates fierce competition among providers for solvent borrowers. If you want to find a loan that fits your personal options on the one hand and that is not unnecessarily expensive on the other hand, you have to make the effort to compare the offers.

Whether you get several offers from different banks on site and compare them, or whether you use an online tool for the comparison or whether you even use an independent consultant, is a question of experience and the willingness to deal intensively with the topic , In the end, it often turns out that the effort is worth it, because the interest rates vary greatly depending on the bank. Even a small interest rate difference makes a big difference with a large amount of financing.

Car loan comparison with final installment

If you want to fulfill your dream of individual mobility, you have a wide range of financing options at your disposal. There is the classic consumer or private customer loan, in which you pay equal monthly installments until full repayment. Then there are variants in which the monthly rate is lower. When you start a car loan comparison with the final installment, the calculation of the cheapest loan or the best solution is no longer so easy.

The calculated interest rate is decisive

The calculated interest rate is decisive

If you want to compare the different loan options, you should pay attention to two things: On the one hand, the monthly rate calculated according to your personal wishes. A running time that is too short with monthly rates that are too high can reduce the fun of the vehicle a little if you have to restrict yourself too much.

An extra long term with monthly rates that are too low is also not suitable financing because you pay mini amounts every month – although you could easily afford a higher rate. When comparing car loans with the final installment, you should pay less attention to the monthly installment, rather to the total interest and the price of the money! So the calculated interest rate is an essential decision criterion.

Arguments for a low closing rate

Arguments for a low closing rate

When comparing the car loan with the final installment, it is best to work out very different final installments and terms. A rule of thumb helps here: If you are not sure whether you want to continue using the vehicle, the final rate should be below the expected used car price. Then you take no risk that you have to pay a high final rate, although you can only resell the vehicle at a lower price.

A comparatively low final rate also depicts the monthly costs of driving through depreciation and depreciation in a much better and more honest way than some car dealership financing. In contrast to the result from the car loan comparison with the final installment, this would rather advertise with a 99 or 119 dollar installment and then show a high final installment or a high calculated value.

You will find the right car financing taking into account the total price of the financing and also by carefully considering how the monthly installments and the final installment should look. Calculate different variants and decide on the right financing.