What should you look out for from this month on when you take out a home loan?

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From this month on, private library lends stricter conditions to a home loan. How did that happen? Since the Americans voted the billionaire Donald Trump to the White House, the long-term interest rate has been on the rise. After all, investors are convinced that the new-born president is going to lower taxes on companies and invest in infrastructure.

That confidence translates into an increase in the long-term interest rate. And that optimism can also be felt with us. Although the increase remains limited by the policy of the private library. The people looking for a home are the first to feel the slight increase.

After all, the long-term interest rate determines how expensive a mortgage credit is. The private lender announced earlier this year that it is expected that the interest rate on housing loans will increase by a maximum of 0.5 percentage point by the end of this year. Moreover, all experts are convinced that historical cheap housing loans have been completed.

Stricter credit conditions

credit loan

But the rising interest rate is not the only thing that is above the heads of those who want to take out a housing loan soon. The private lender called on financial institutions earlier this year to link stricter conditions to a housing loan. For example, the private library should only be able to grant an advantageous mortgage loan if someone can put at least 20 percent of the capital on the table themselves.

According to the private lender, this measure is necessary to be able to absorb major negative shocks. The new rules take effect this month. Even though the private lender is not obliged to impose those limits. For example, lenders may borrow more than 80 percent of the market value of your home loan. Although they have to set up an extra reserve for that.

And that translates into a more expensive home loan for customers. A private lender, for example, you pay more for a home loan if you yourself finance less than 20 percent of the market value of your home.

The private lender admits that they analyze each situation individually. In other words, it is perfectly possible that you can still borrow 90 percent or more when you buy a home.

Moreover, Bart Tommelein, Flemish Minister of Finance, has already announced that he is investigating whether he can create a certain insurance policy that makes it much easier for people to borrow more than 80 percent of the market value of a home. Such credit insurance would protect the private lender loan against defaulters. The private lender still has to comment on that.

Comparison remains the message

housing loans

That is why it remains important to compare home loans. This is the only way to ensure that you get the cheapest loan. A first step in the right direction is to compare the rates on our site. In addition, it is recommended to visit the private lender as much as possible. The rates that we publish are posted interest rates. That means that a private lender is usually willing to lower it further if you get a cheaper rate elsewhere.

Experience shows that you can get up to 30 percent cheaper than the rates published by the private lender. Although it is advisable not to wait too long to play a private lender against each other. After all, interest can change at any time. Although that will never be more than a few basis points. The private lender is usually willing to click on the proposed interest, so that you can compare it with other private lenders.

Moreover, it will soon be easier to compare loans. From 1 April 2017, private lender loans must announce an annual percentage rate for a home loan. This is already the case, for example, with a consumer credit or a car loan. When determining the APR, all additional costs are taken into account, such as the price tag of the extra insurance products (such as fire insurance) that you must take with your home loan.

Choose the right interest

loan interest

Now that the interest rate is still quite low, it is recommended to take out a housing loan with a fixed interest rate. In such a case, you are certain that your home loan will not become more expensive when interest rates rise. If you want to refinance a home loan with a fixed interest rate when the interest rate nevertheless falls, you must pay a reinvestment fee.

This may never be higher than three months interest. Although it may be interesting in some cases to take out a housing loan with a variable interest rate. Those who opt for a variable interest usually receive a lower rate than those who opt for a fixed interest.

That is because you take on part of the interest rate risk when you opt for a variable interest rate. Anyone who chooses a variable-interest loan agrees that the private lender adjusts the interest at contractually specified times in line with the evolution of a reference index. This can be, for example, every three years. The private lender must respect a number of limits.

For example, the variable interest may never double. For example, an interest rate of 2 percent may rise to a maximum of 4 percent. The majority of the private lender also includes a cap in the loan contract. This way you know in advance how much the cost price of your home loan can rise.

 

Housewife loan online: compare the best small loans

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Housewife’s credit – strictly speaking, this form of credit no longer exists today. The term comes from the early years of the Federal Republic of Germany.

What has remained is a search term under which financial service providers offer loans, mostly small loans, for low-income individuals or families. In the 1950s and 1960s and also in the 1970s, the conservative division of roles was still widespread.

The wives took care of the household. Later, when the economy was on the up, many women were still employed. They usually worked on an hourly or half-day basis.

The main earner was the husband. Very rarely there was the reverse case or the case that both spouses earned approximately the same. The term housewife’s credit has developed against this social background.

The history of housewife’s credit

The history of housewife

Housewife’s credit was not understood to be a loan that was used to finance furnishings or household items.

It was also not a loan to finance wishes such as clothes, shoes or kitchen appliances that were believed to be typical of housewives.

Rather, the housewife loan was an all-purpose loan that could be applied not only by housewives but also by all other groups of people who had little or no income of their own.

In addition to the spouse who does not earn or only earns little (theoretically, this could also be housewives), housewife loans could also be applied for, for example, by adult children in training and students. And it went like this:

The person concerned completed a loan application with a branch bank, preferably with the house bank. If there was an account there, that was a plus.

The tax bracket of the main earner, usually the husband, was entered into the loan application.

If the bank could conclude from the tax bracket that the income was high enough, that was enough to hedge the credit default risk.

In this case, the bank trusted that the obligations from the loan would be met and granted the loan.

Such a lending procedure would be inadmissible today. Every bank is obliged to carefully check the credit rating of the credit customer before a loan is issued.

With information from a credit agency (for example at Credit Bureau), the reliability of the credit customer and the probability of repayment are assessed.

The information in the loan application is used to determine personal circumstances (single, married, children, rented apartment or property?) And economic performance (income fewer liabilities).

The bank determines an in-house bank score from both examination elements, which is reflected in the award guidelines.

Nowadays, for legal reasons alone, it is not possible for a loan applicant to rely on the creditworthiness of a third party who has not become a contractual partner. No loans are granted to people without income alone, that is, to house wives or housewives.

What does housewife credit mean today?

What does housewife credit mean today?

Two types of credit are currently usually offered under the advertisement for housewife loans:

Small loans for people who live in a household and have little but sufficient income.

Short-term loans from special providers that are only granted for a few hundred dollars and only with terms of one to two months.

Both forms of credit require income.

This does not necessarily have to be a regular salary income or income from self-employed or commercial activity.

But a loan for housewives or housewives without any income is a fairy tale.

Short-term loans with low income

In the case of short-term loans and mini-loans, some special features are important.

First-time applicants in particular only receive very small amounts of credit, usually only a few 100 dollars. The terms are very short. They are often only one to two months.

The loan amount must be repaid in one sum at the end of the short term.

Interest rates seem fairly normal. They lie at the top of the effective annual interest rate to be used for normal installment loans.

But if you want additional services, you pay a disproportionate amount. Additional services can consist of express functions, payment of installments, term extensions and credit certificates.

Mini loan providers expect proof of income or expensive loan defaults.

However, the demands on income are not too high. As a rule, the minimum income is around 600 dollars per month. In addition, it does not necessarily have to come from regular employment.

Low-earning housewives or housewives and also students or trainees who meet all other requirements (for example, majority, account, and place of residence in Germany) have a credit opportunity.

We have presented all the details along with the credit comparison and the risks associated with short-term loans in a separate article.

Small loans for housewives, housewives, and low earners

Banks are ready to lend if there is enough free income after deducting household costs and taking into account the seizure allowances to shoulder the loan installments.

Housewives, housewives or other people with no income or only with income within the garnishment exemption limit do not receive a bank loan themselves.

You need a co-signer who must meet all the creditworthiness requirements.

A guarantor is often mentioned in this context. However, guarantees are unusual for loans for private individuals.

In general, the bank insists that the co-signer becomes the borrower together with the main signer so that both can be accessed immediately in the event of a performance disruption.

Lower-earning couples, to whom the offers for housewife loans are primarily directed today, must always sign together.

The amount of the small loan that is possible depends primarily on the individual creditworthiness of both partners and the common income.

Offers for so-called housewife loans

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With the small loan comparison, small loans can be compared free of charge and without obligation. Loans from USD 500 (offer from Good Finance) are currently possible. The minimum term is twelve months.

Most of the banks participating in the comparison offer their customer’s documents upload and video ident. This speeds up the payment of small amounts of credit.

Smava not only provides bank loans but also P2P loans. Among other things, E-Money takes part in the loan comparison.

E-Money is considered the market leader. According to the financial service provider, students or persons on parental leave can also post loan projects on the financial service provider’s portal who do not have a regular income from dependent or self-employed employment.

Real estate loan to finance the purchase of old housing

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The process to obtain a mortgage in the old is not very different from that which finances the purchase of a new property, but this type of loan can have its own characteristics. Update with our experts. 

Aid for accession

Aid for accession

Most of the criteria for granting aid for home ownership are centered on the financing of the main residence and on first-time buyers .
The aid distributed by the State concerns both the purchase of old housing with work and a new apartment for sale, which is not the case for that distributed by local authorities, whose devices are often intended offer new programs at reduced prices in upgraded neighborhoods.
Important: the duration of subsidized loans is generally shorter than that of the main mortgage, it is advisable to carry out smoothing in order to avoid repayment stages. You will get a unique monthly payment.

Government-subsidized loans

Zero rate loan

You can benefit from the PTZ PLUS to finance the purchase of an old property if the property meets one of the following two conditions:

  1. You carry out work whose amount reaches at least 25% of the total cost of the operation, ie 1/3 of the purchase price. Eligible work is limited to enlargement (increase of living space), development and energy saving, provided that you do not benefit from an eco loan at zero rate.
  2. You transform a room into habitable housing by carrying out work such that it assimilates it to new housing for tax purposes.

Good to know: development or embellishment works are not eligible for the PTZ.

NOT

It can finance either new or old housing without condition of work and can also be used to finance energy saving work on a main residence.
Important: the loan for social accession allows borrowers not exceeding a certain income ceiling defined by CAF to benefit from an APL. 

PEL-CEL

Again, the type of good doesn’t matter. Loans from operations subscribed after March 1, 2011 must relate to the main residence: acquisition or completion of certain improvement, enlargement or energy saving works.
It should be noted that the low level of mortgage rates makes it less attractive to use the rights to PEL or CEL, unless you finance work on your main residence.
Please note: transactions subscribed before March 1, 2011 finance the purchase of a second home.

Housing Action Loan

The former employer loan allows employees of companies with more than 10 people to benefit from a particularly competitive rate. However, it does not constitute an absolute right insofar as it depends both on the choice of the business manager, who can decide to allocate all or part of the funds to social rental housing and the envelope available at the time of request.

Aid from local authorities

They can be combined with that of the State. Note that assisted or controlled access to assistance, carried out in partnership with promoters and certain banks, is most often reserved for low-income households and intended for the acquisition of new housing located in ZACs (development zones concerted).
However, many cities and agglomerations of municipalities provide aid for the purchase of old housing in the form of a subsidy or zero-rate loan . Get in touch with the services of your town hall to find out their policy on assistance with accession.
Important: subsidized loans from the State and local authorities are taken into account in the calculation of the personal contribution . They are also subject to compulsory insurance in the same way as the main mortgage.

Notary fees

Notary fees

Notary fees are significantly higher in old real estate than in new. You will need to count around 7.3% of the purchase price against less than 3% in new.
For example, for the purchase of an old apartment in the amount of $ 200,000, you will pay almost $ 15,000, while for the same investment in new, it would cost you “only” $ 6,000.
Some banks require the borrower to finance notary and guarantee costs. You will therefore need to have more personal capital if you buy in the old one.
Important: unlike other regulated loans, the state zero-interest loan cannot finance notary fees.

Finance works

Finance works

Interim interests

If the home loan is also used to finance work, know that the release takes place as and when they are carried out. During this period, you will not amortize the capital and will have to pay the interim interest.
They therefore constitute a financial overload that should be appreciated from the start, which is not always done by the bank advisor or the mortgage broker. It must be admitted that the timetable for carrying out the work is not always known when the borrower makes the loan request. In addition, the deadlines are not always respected by the craftsmen.
However, these obstacles should not prevent you from having an estimate of the amount of interim interest on a forecast basis and integrating it into the financing plan .

Here, by way of example, is the additional cost represented by interim interest on the basis of $ 50,000 of work. The loan is granted at a rate of 1.40% (excluding insurance). To simplify the calculation, the invoices are paid each time on the 5th. The first amortization of the capital will therefore start on October 5, 2017, the date on which the entire loan will be released.

Dated Disbursement Accumulated debt Prorated duration Amount of interim interest
January 5, 2017 $ 15,000 $ 15,000 9 months $ 157.50
March 5, 2017 $ 8,000 $ 23,000 7 months $ 187.83
May 5, 2017 $ 10,000 $ 33,000 5 months $ 192.50
July 5, 2017 $ 6,000 $ 39,000 3 months $ 136.50
September 5, 2017 $ 11,000 $ 50,000 1 month $ 58.33
TOTAL $ 732.66

Important: if you do not have sufficient personal contribution or income to pay the interim interest, be aware that some banks agree to defer their payment or to integrate their amount into the main mortgage.

The ANAH grant

You can benefit from a subsidy from the national housing agency, provided that your accommodation is more than 15 years old and that you do not exceed a certain income ceiling. The work must relate to the medium or the large work, the improvement of the networks or the security and be carried out by a professional.
Note that work promoting the autonomy of people (seniors or disabled) is also eligible for assistance from the ANAH.

Refurbishment of an old premises

Refurbishment of an old premises

If you plan to buy a local in order to transform it into housing, be aware that depending on the importance of the work, the property will be considered taxable as a new property.
A list established by the CGI determines for the shell (foundations, rigidity of the building, roof, facades, etc.) and for the medium structure (floor, partitions, sanitary, electricity, heating, etc.) the eligible works .
If the income conditions are met and if the future accommodation is intended for the main residence, you can benefit from the PTZ.
Please note: you benefit from a reduced VAT of 10%.

Purchase of social housing

Purchase of social housing

You can buy your low-cost housing, provided that the building has been built for more than 10 years and that it meets the standards of competence set by the State. The request is made directly to the social landlord who has 2 months to provide you with their response.
The selling prices are decided directly by the lessor, after evaluation by the domain service. They are significantly lower than those on the market and generally make it possible to get a good deal.
Financing is carried out on the same basis as for any old real estate and the borrower benefits from the same rights on the assisted loans as the PTZ.  

Your chance of getting a loan

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As Good Credit continues to improve itself every day in its technological developments for loan applications, very easy and fast methods have developed. There is a certain amount of cash that credit people receive by applying to banks, depending on their needs. This cash is offered to each bank with different interest rates and options.

In addition, the person should have certain features. It is an advantage that is easy to pay in the form of credit installments. However, the interest rate to be paid at the banks and the number of installments requested is in a certain proportion. Good Credit loan application There are different options such as the internet, telephone or bank branch.

How to Apply for Good Credit Loan Online?

How to Apply for Good Credit Loan Online?

It is possible to apply for a Good Credit loan application without using Good Credit direct mobile application. Access to the Good Credit general website through a device with internet access, where the person is directed in an easy and understandable language. The person fills in the information requested for the loan application. After the application process is completed, the bank returns to the person.

However, a person who is a customer of Good Credit and who uses the Internet for Good Credit mobile application can request a loan application to the bank quickly from the menu options by logging in to his Good Credit internet application with his password. The bank receiving the application will return to the person by phone again. People who do not use the Good Credit mobile application can also apply quickly by downloading the application if their phone devices and models are suitable.

Loan Application With Customer Service

Another option for a Good Credit loan application is to request an application through a Good Credit customer service number. Calling customer service, credit application keying is made according to the answering machine’s guidance from the bank menu options. After the request is received, the bank officer directly contacts the person under appropriate conditions.

A credit application is taken to the approval pending process by obtaining the contact information and application. Again, a positive or negative return is made by the bank. This approval process is the examination period regarding the working and financial conditions of the person.

Make an Account Without Making a Credit Application

Make an Account Without Making a Credit Application

With the convenience granted to individuals for Good Credit loan application , it is possible to apply accordingly by making your own account on loan accounts first. Before making a Good Credit loan application , you can enter the credit calculation rate on the internet and fill this table and have it automatically calculated.

For this, you write the number of loans you want in the loan table and how many installments you will pay. The loan calculator set up this account for you, providing you with the total amount you will pay, the total interest rate you will pay, as well as all the financial values ​​such as how much you will pay monthly. It may be healthier to apply after calculating the most appropriate loan amount by calculating here.

Interest Rates for Good Credit Credit

After the Good Credit loan application is made, the loan to be paid is divided into a certain number. The interest rate is also taken together within the amount to be paid each month. For Good Credit bank general-purpose loan, if 10.000 USD is calculated, the interest rate determined for 12 months is 1.65%, for 24 months.

1.61%, 1.59% for 36 months and 1.59% for 48 months. The interest rates stated here are currently the most favorable interest rates for the Good Credit consumer loan. A person who applies for Good Credit loan notifies the bank about the number he/she needs and the number of installments he/she wants. The bank creates a mutual approval by presenting the number it deems appropriate and the number of installments to the person.

Requirements for Using Good Credit Loans

Requirements for Using Good Credit Loans

Before making a Good Credit loan application, the person must first assume the features that have a credit application. This will be a feature to be sought by other banks besides Good Credit. The person must have worked at an insured place for at least 6 months before applying for a Good Credit loan. Also, the person should not have a bad debt relationship with banks. It is important that there is no outstanding credit or credit card debt with Good Credit.

The person will present a certain income to the bank when applying. This income must be a documentable income. Salary payroll is included as documented income in the application file of the person. The bank takes all these in detail during the application and transfers them to the review process.

Easy Loan to Buy a Vehicle

The good Credit loan application is made in the purchase of vehicles that fall into a need class, apart from the general-purpose loan. However, it is important to know the rules that the bank has set for a vehicle loan before applying for a Good Credit loan. People who apply for bank car loans do not have much trouble if they have zero vehicle requests and have payment opportunities for the loan.

But there are certain rules set for second-hand vehicles. The model age of the vehicle is important for the bank. The bank offers a certain model year and credit facility. In general, this figure applies to 2005 and 2006 models and vehicles of the higher models. The Bank provides credit to the vehicle as much as it determines.

Viewing Credit Details

Viewing Credit Details

If a person who applies for Good Credit loan application has both the approval process and the approved loan, he has the opportunity to see all the details of this quickly with Good Credit internet banking. This is possible for anyone using internet banking. After the person logs into the application with the customer or TR identity number, they will see all their relations with the bank at the same time.

The remaining credit debt, the amount to be paid monthly, and the days of payment are included here in full detail. The system updates itself as payment is made. The person also has the opportunity to see all the information and movements associated with the bank, except for the credit details.

Quick Credit Installment Payment

For a Good Credit loan application , the person does not have to go to the branch continuously. Going to any branch or waiting in line to pay every month is now among the features that remained in the past. Once the person applies for Good Credit loan, He can make his monthly payments using Good Credit internet banking on time or demand accounts.

Here, in the menu options, there is an installment payment tab for credit. Anyone whose account limit is available can make their credit debt here. The amount of loan debt paid monthly falls from the account limit and the person has the right to benefit from the features such as viewing or saving the document that he has paid.

Housing Loan Opportunity

Housing Loan Opportunity

Good Credit loan applications are made in housing in many public segments. However, those who apply for Good Credit loans for housing also provide loans with bank housing value. As long as the person does not have sufficient income certificate and have a bad relationship with the banks, he / she will have the right to credit as much as the limit set by the bank for the housing he shows to the bank.

If the Good Credit loan application is made for housing, the bank examines the property by the authorities and determines a value within the bank approval process. For this reason, people who will get a mortgage loan may need some cash. If the bank does not pay the whole part of the house, the person can easily get the house. Generally, it is not possible to get bank loans for the houses that are very old and do not have the necessary security.