Save € 1000 on your loan with a mortgage guarantee

There are cheaper options, because you can quickly save up to € 1,100.

When you take out a home loan you have extra costs, for example for drawing up the notarial credit certificate and registering the mortgage deposit. 

For a loan of € 150,000, you can save € 900 to € 1,110 by limiting the guarantee in part to a mortgage mandate or a mortgage guarantee .

 

Mandatory visit to the notary

When you buy a house or building plot, you must pass through the notary to record this transaction. The transaction is recorded in an authentic or notarial deed . In this way, it can be directly opposed to third parties, which means that everyone knows about it and has to accept it.

In addition, you must also go to the notary for the establishment of a mortgage guarantee in favor of the bank that provides the home loan. This mortgage mandate is recorded in an authentic or notarial deed. A mortgage offers the right to a financial institution to sell the property in the event of a default by the borrower in order to collect the money together.

The recording of the mortgage loan in a notarial deed is not free. For example, for a loan of € 150,000 you pay € 4,200 to € 4,600. This amount includes the costs for the notary’s work allowance, but also costs such as the mortgage right, the registration fee, the right to writings, the fee for the mortgage custodian, etc.

 

Reduction of the charges

You have the opportunity to propose the banker to work partly with a mortgage mandate . For example, the mortgage is immediately registered for a first part of the loan. For the second part of the credit, you subsequently give the right to register an additional mortgage at the moment that he deems it necessary. You avoid extra costs by paying everything nicely so that the additional registration will not be necessary.

The cost of a mortgage proxy is lower than that of a mortgage. Even with a power of attorney, the intervention of a notary is mandatory, but in this case there are no mortgage rights and the registration fees are only € 50. In addition, the fee of the notary is one-fourth of that at a direct mortgage.

Suppose a credit of € 150,000 is split up into a mortgage of € 100,000 and a mortgage mandate of € 50,000, then the costs will drop to approximately € 3,300 to € 3,500.

 

Limitations on proxy

It is not appropriate to arrange everything through a mortgage mandate . If you want to enjoy the tax benefits of a home loan, you must take out a fully-fledged mortgage credit for this . This credit has a term of at least 10 years.

When the power of attorney is granted, no effective registration takes place. This ensures that other financial institutions establish a mortgage on the property so that they are the first to be entitled to the proceeds from the sale of that property in case of default.

In addition, you also pay a cost for converting a mortgage mandate to a mortgage registration . This cost can be slightly higher than if you would immediately take out a mortgage registration .

Dispo covered, what to do? Is switching to installment loan worthwhile?

Almost everyone has ever overdrawn his disposition loan , in short Dispo.

A dispo can be obtained in most cases directly at a current account opening. The prerequisite for this does not even have to be a regular income. When opening an account, most current accounts with a disposition loan of up to 500, – Euro preset. If you want a higher collection, the bank usually has to prove only a regular income.

Tip: The Dispo is by far the most expensive type of loan that you can use!

It is no problem to avail the discretionary loan, it is problematic only if the own Dispo is permanently overdrawn and no longer serves only for the short-term bridging of financial problems. In times of online shopping and must-have-out deals you can quickly tempt the customer to buy. People who permanently (more than 3 months) cover their Dispo must be careful not to run in the Dispo Trap. Even if the discretionary loan can be used without any effort, there are a few points that the consumer must pay attention to:

  • Debt loan is very high interest
  • loan approval is often the first step in the debt trap
  • Disbursement declines the disposable income and leads to overspending.

What should I do if I’m permanently in minus?

Anyone who uses the loan line permanently will see a negative amount on each bank statement. In addition, the bank either per month or per quarter, the interest on the loan also interest. As a customer you not only have to repay the borrowed amount of money, but also high amounts for the accrued interest. Despite the low interest rates, every bank still pays the interest on such disbursements very expensive. So there are hardly any offers that are below 6% disposition interest.

What to do against overdrawn account?

If the checking account is permanently overdrawn, you should think about rescheduling . Since the collection is the most expensive type of loan , it may be worth switching to a classic installment loan to make up for the negative account. A installment loan over 1000, – Euro, for example, there are already from 2.75% effective interest at 12-month term (Santanderbank as of 13.09.2014). A rescheduling of loan on debit loan but only worthwhile for people who know that they can not compensate for their loan in the next few months. This often happens when you permanently spend more than you take. In such cases, an installment loan will help to balance the account. With the payment of the installment loan, the expensive disbursement costs are immediately eliminated, since there are no minimum terms for the discretionary loan. These are replaced by the significantly lower installment loan interest. Another advantage of rescheduling an overdrawn account is the fact that the loan amount that is repaid monthly is freely selectable. If the borrower can repay the loan only in very small installments, the term is extended accordingly. 

Change from loan to installment loan

Switching from disposition loan to installment loan is very easy. In some cases, even the house bank and offers this change on its own. This happens rarely and only with customers who permanently exhaust their Dispo. At least one should take a closer look at this offer, because the change from disposition to installment loan within one’s own bank is often cheaper, but the savings potential is not fully exploited here. The own house bank offers the installment loan to often worse conditions, than this on the market is available. Anyone interested in a installment loan, for example, to get their own current account out of the red, should use the free interest calculator on the Internet. These are free of charge for the consumer and quickly show at which conditions a rescheduling would be possible today. If the installment loan of the bank is similarly good, there is nothing wrong with accepting this offer. Who asks the question: ” Do I get a loan ?” Should first make a free loan request .

Loan Insurance

In order to realize your project faster, you have chosen to take out a loan.

During an interview, your banking advisor suggests you use insurance to cover your personal loan . And there, you hesitate to accept or not the suggestion.

If you have not yet given your approval, find in this article some tips that will help you understand the importance of subscribing to a borrower insurance, even if this option is optional.

The principle of loan insurance

Loan insurance, also called borrower insurance is an insurance for individuals or professionals who choose to take out a loan from the bank or credit agency. Although this option is a legal requirement, it is a guarantee that credit institutions recommend to their clients during the preparation of their loan file.

Loan insurance is a guarantee that protects the borrower, his or her family and the lender against possible risks that could prevent the borrower from making a repayment of his loan.

As a result, when you take out loan insurance, you are primarily responsible for your own protection, in the event of partial or total disability: events such as job loss or illness may prevent you from continue to repay your debts in full. If you have taken out loan insurance and you may become disabled due to an accident or illness, your insurance company will take over and pay the outstanding balance with your credit institution.

Insurance Simulation

The type of reimbursement is based on what was agreed when you subscribed to your insurance contract: the insurance can take care of repaying the remaining capital that you could not pay or make the refund by the payment of monthly installments of the loan. Today, to minimize the risk of default, credit institutions advise their customers to always subscribe to loan insurance, regardless of the nature of their credit: business loans , consumer credit, revolving credit …

Loan insurance: a protection to ensure the full repayment of your loan

As a guarantee, credit insurance not only protects the borrower but also his or her family and even the organization that provided the loan.

Regarding the borrower, a loan insurance will allow him to take out a loan with more serenity, knowing that in case of illness or accident, repayment of his loan will continue. He will also be more serene, knowing that his relatives will be protected and released from debt, if he ever dies or becomes disabled, before the total repayment of his loan.

Indeed, some people who die before the full repayment of their loan can bring their loved ones to pay their debts.

With loan insurance, relatives or descendants of the borrower will not have to bear the expenses related to the repayment of the loan taken out by the deceased or invalid borrower.

In such cases, it will be up to the insurance company to fully or partially settle the credit contracted by the borrower. For an overview of the fees that loan insurance could incur, you will be able to simulate loan and compare loan offers that also offer insurance with cheaper fees. For the lender, your loan insurance is a sort of guarantee that the money it gives you will be repaid, even if the borrower is no longer able to continue its reimbursement.

Personal credit: the benefits it represents

Like most loans, personal credit can be of great benefit to the subscriber. In the majority of cases, it provides the subscriber with some freedom, since he does not have to justify the use of the credit with the financial institution that offers the credit.

The personal loan also allows the subscriber to better manage his financial situation, since the monthly payment remains fixed, the repayment period known in advance and repayment can often be spread over several years. With personal credit, the subscriber can finance his personal projects, without committing all his savings at once.

In addition, he generally has several years to make the repayment, which allows him to repay gradually while having the opportunity to build a cash.

Considerations to buy a car with a loan

Buying a car is usually an important investment.

Whether it’s second-hand or new dealership, buying a vehicle requires an outlay of money for which we’re not always prepared.

Fortunately, banks usually grant loans with special conditions to purchase a car. The concessionaires also usually do it and the percentage of loans that are requested in them has increased in the last years because their conditions are usually better than those of the banks themselves.

It is clear that whoever has the full money to buy a car is a lucky one. For those who are not so and have to resort to a quick online loan, a loan with bank or the same dealer, we will list the most important recommendations before buying a car:

Be honest and set a budget

Before making the decision to buy a car, it is essential to do a self-examination of our real possibilities. Knowing our ability to borrow and the ability we have to repay the loan, are the best indicators to establish a fixed budget and assess the options, brands and models available.

Analyze all the financing options that we have

As explained above, to finance a car there is the possibility of financing with the bank or with the same dealer. The most striking difference between the two is that dealerships are usually a little less restrictive with the loan requirements since their goal is to sell the car. Although they continue to look at their prospective buyers with a magnifying glass, the concessionaires will not ask for the loan to be associated with other financial products and may require less collateral than a bank, but the interest rate and loan costs may be a little higher. than in a financial institution.

Also quick credits without papers can resolve the amount necessary to complete the purchase of the car that interests us.

Find out about the interest rate and expenses included

Read, read and reread the conditions of the loan that is chosen and calculate on our own with an online loan calculator the total price that we will end up paying when returning all the capital. The small print usually hides expenses of opening and closing operations, commissions and other expenses that can make a loan much more expensive than choosing another loan with a higher interest.

The more input less money to finance

We know that it is not always possible, but giving a considerable amount of money will make the money to be financed less and therefore our economy will not be so resentful each month when having to pay a fee. Keep in mind that some dealers have a minimum and a maximum of money to finance depending on the total amount of the chosen car.

Have at hand the minimum documentation for the processing of the loan

Although it seems an irrelevant recommendation, many loans expire because they do not have the required documentation on time. Try to have your national identity document, driving license, the last 3 payrolls, the last declaration of the rent and any other document that shows payment guarantees.