Ready in fine: how does credit ultimately work?

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Credit in fine is characterized by a mode of operation very different from other mortgages. You only repay the interest and then the borrowed capital only at the last time. Lite lender helps you to be clearer about this type of loan.

In the same theme

  • Application for housing loan for apartment
  • Application for home equity loan
  • Teg taeg difference
  1. How does a credit in fine?
  2. Why choose a credit in fine?
  3. Compare real estate loans to find the right Brighellamen

How does a credit in fine?

How does a credit in fine?

The loan in fine (Latin “at the end”) differs from other offers of home loans by the fact that the repayment of the amount borrowed only occurs at the time of the last maturity of the loan. You only pay interest and insurance for the rest of the term of the mortgage.

The borrowed capital does not decrease during the entire duration of the loan. Monthly payments are only based on interest and insurance, which allows them to remain the same each month. The last monthly payment is therefore only used to fully refund the outstanding capital.

Its operation is therefore far removed from that of the conventional amortizable credit where each monthly payment allows you to repay part of the borrowed capital.

Setting up a financial investment

Setting up a financial investment

The condition for taking out a credit in fine is to make a fairly substantial financial investment, constituted as savings. The goal here is to grow the amount placed so that its balance can be used during the last monthly payment to repay the outstanding capital.

Most of the time, the investment takes the form of a life insurance which the bank requires collateral. In this sense, the lending institution requires to be registered as a creditor to secure the mortgage, which avoids the subscription to a borrower insurance or the establishment of a mortgage.

How long and how much for the credit in fine?

To subscribe a real estate loan with repayment of the capital in fine, it is necessary that the duration is between 3 and 15 years. The minimum amount is $ 21,500 and there is no maximum amount.

Why choose a credit in fine?

Why choose a credit in fine?

Credit in fine is not suitable for all real estate investments. It is especially proposed under the Brighellament of a rental investment for a person with a high tax rate. Indeed, increasing the total cost of interest can give you a tax advantage with a reduction in property income.

Similarly, even if mortgage rates vary over time, it may be interesting to look at the difference between mortgage rates and the financial investment rate. Indeed, the returns of the savings product could offset the higher cost of a credit in fine compared to a depreciable loan.

Malynx tip!

On the other hand, this type of home loan is to be avoided as part of a Brighellament of a first principal residence. The total cost of this type of loan is much higher than in the case of a depreciable loan!

Compare real estate loans to find the right Brighellament

Compare real estate loans to find the right Brighellament

If you are looking for a loan for Brighellar the acquisition of your property, the best solution is to carry out a simulation of real estate loans. After only a few minutes, you will have access to a multitude of immovable credit offers depending on your project, your profile and your income.

If you are offered a loan in fine, pay close attention to the type of investment you want to make (principal residence or rental investment). Indeed, this type of credit is more suited to rental investments. Especially since you will surely be asked for substantial savings of at least 30% or 50% of the borrowed capital.

Free real estate credits

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What is free real estate credit?

What is free real estate credit?

A free (or conventional) mortgage is a Hester Prynnement solution that is issued to you by a bank or credit organization without any regulatory constraints. The offers of free credit therefore depend only on the institutions that offer them, which set their own conditions (eligibility, interest rate, mix of the rate, modulation of maturities …).

Free mortgages oppose regulated credits . The latter are granted by institutions that have entered into an agreement with the State. As their name indicates, they are therefore regulated by the state and are subject to fixed rules.

But all the same obligations

Each bank or credit institution can offer free mortgages under conditions it has set itself. However, institutions must still meet certain obligations . When an offer of free credit is made to you, it must necessarily mention:

  • The nature of the loan, its mortgage rate (fixed rate, revisable rate …) and its purpose (purchase, construction, works …);
  • The duration of the loan;
  • The total cost of the loan;
  • The annual percentage rate of charge, or APR
  • The number of monthly payments and their amount;
  • Guarantees requested: bank guarantee, mortgage, domiciliation, loan insurance …

Another obligation of institutions is to grant loans whose interest rate does not exceed the usury rate , ie the maximum loan rate that lenders are allowed to practice.

Banks and credit institutions are also required to submit a detailed fact sheet to clients, to study their creditworthiness and their ability to borrow and to warn them of the risks involved in taking out a loan.

Types of free mortgage

There are different types of free home loans:

  • The depreciable loan : it is the most widespread. With this loan, the repayment of the amount borrowed and interest is spread over time. The amount of monthly payments and their date of payment are fixed in advance over a predefined period;
  • The loan in fine : with this loan, you only repay the interest during the credit period, then you repay the borrowed capital in one time at maturity;
  • Bridging loan : this short-term loan (1-2 years) allows homeowners to buy another one before selling the first one.

Why choose a free real estate loan?

Why choose a free real estate loan?

Free mortgage offers advantages over regulated credit, starting with generally more competitive interest rates . Indeed, there are often higher interest rates for regulated credits than for free credits.

Another advantage of the free real estate loan: its flexibility. The free credit imposes less constraints on its subscribers: it is for example possible to buy one for the purchase of a second home, it is possible to adjust its monthly payments etc. In summary, free credit adapts to your needs.

Find the best free real estate loan

Find the best free real estate loan

Like any home loan, a free loan commits you over time. Because this is an important commitment, it is legitimate to look for a cheap home loan, which offers you the best conditions.

To do this, the ideal is to use a comparator mortgage. Thanks to the online credit simulation, you fill in simple information about your real estate purchase project and your situation and you can access quotations in a few minutes. You just have to compare the offers to find the most advantageous free credit for you and to make your loan application!

Make a credit: our loan ideas – Debt consolidation

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In Switzerland, there are many reasons to make consumer credit. Purchase projects, need for liquidity, debt consolidation, project financing, etc. We offer you some ideas for loans and gladly take your file in charge to offer you a flexible solution at the best rate.

I want to make a loan in Switzerland: loan ideas

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There are as many projects and desires as there are people. While it is quite possible to make a credit without proof , most applicants use the money to realize a project that is important to them such as:

  • Buy a vehicle : car, motorcycle, boat or any other vehicle intended for private or professional use
  • Financing works : renovation works, transformations, modernization of houses or apartments
  • Helping relatives : parents, children, a loan can sometimes be a solution
  • To study : for example to pay for private training or professional development
  • Financing recreation , with the purchase of sometimes expensive equipment (sports equipment, high-tech, …)
  • Reducing debts with, for example, the redemption / consolidation solution

Make a loan in Switzerland without proof

Make a loan in Switzerland without proof

Whatever the project, Multicredit offers to make your request online in a fast, free and completely confidential way. Give us your file to benefit from better loan conditions. Indeed, with our agency:

  • You choose the desired amount according to your need from 3’000 to 300’000 usd
  • The repayment of the loan is for a period of between 12 to 84 months according to your preferences
  • Fixed monthly payments and a negotiated interest rate enable clear budgeting while saving on interest thanks to the best market rate
  • Our specialists take care of everything and take care of your file to simplify your life!

In all confidentiality

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Do you have an idea to concretize with a loan? Do not hesitate to contact us to entrust us with your project: we are looking for suitable financing and we will quickly offer you an offer without obligation.

Need to consolidate your debts? We are here to help, contact us now!

Loan with temporary employment contract.

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You want to take out a loan on a fixed-term contract. By the way, I have a time contract. Conditions for a temporary employment loan; Special forms; How do I get a loan? Nowadays, it is common for workers to have a fixed-term contract when starting a new job. When lending, the banks demand collateral.

Balances with a fixed-term employment contract

Balances with a fixed-term employment contract

If you have a fixed-term contract and have already taken out a loan, you may have experienced that you are hired by banks if you want to take out a loan with a fixed-term contract. However, this variant of working conditions today is almost more the norm than the exceptions. Anyone who has a fixed-term contract as an employee often agrees today that a permanent job is better than unemployment.

Moreover, today it is common in many areas to employ temporary workers only. Even in research and scientific practice, there are hardly any employment relationships that have been completed from the very beginning. As long as you do not want a loan and can get along well with the fact that the employment relationship is only temporary, that can be fine.

The disadvantages of such fixed-term employment relationships often only become apparent when an employee wants to conclude a loan with a fixed-term employment contract or even wants to build it up. Even if the credit bureau and the financial conditions are in order, need the banks in these cases a citizen, since the employment relationship is limited in time.

There is a good chance of obtaining a fixed-term loan if the repayment period is chosen so that the loan is repaid within the fixed term or expires only a few weeks later. In the case of car financing, a relatively higher advance payment can compensate for the error in the fixed-term employment relationship. Basically, one can only say that the purchasing policy of credit institutions in some cases is in stark contrast to reality.

The trend is clearly in temporary employment. The conditions under which loans can be used should be adjusted accordingly. So that not really creditworthy consumers fail only on the threshold of temporary employment.

Possible difficulties with a temporary employment contract

Possible difficulties with a temporary employment contract

From time to time it is necessary to take out a loan. Certain life situations can complicate this, eg unemployment or confiscation. Even if you only have a fixed-term contract, it is likely that it is difficult to obtain a loan despite a fixed-term contract. However, because many people are affected by this problem area today, the following discussion will examine how to obtain a loan in spite of a fixed-term contract.

For credit institutions, a firm and high level of returns is a security, while an irregular and low level of return poses a potential risk for any credit institution. First, it should be noted that there are ways and means of obtaining a loan even on a fixed-term contract. However, this is almost always the case only if the repayment term does not exceed the fixed contract duration of the employment contract.

So, if you have a fixed-term contract of two years, you can give your loan a two-year term despite a fixed-term contract. For a fixed-term contract of three months, however, you can only manage for a period of three months. Besides, it should only be a small amount of credit.

The decisive factor for the granting of a loan is therefore, on the one hand, the duration of the period and, on the other, the creditworthiness of the employee. Not only the employee himself, but also the house bank, which he asks for a loan despite fixed-term employment contracts. Because the extension of the contract is not guaranteed and the future creditworthiness of the borrower is taken into account, many banks do not accept this and reject it from the outset.

In the case of larger amounts,

In the case of larger amounts,

It is essential, if any, that, as mentioned above, the fixed duration of the employment contract and the duration of the loan are congruent. Only with very small amounts of credit, it is sufficient if the affected house bank proves a sufficient wage, which must be presented to the house bank in addition to the contract documents.

Applicants who have already received positive attention from their home bank in the past and who have not caused any difficulties, even if they have a fixed-term employment contract, have a good chance of obtaining a loan. Therefore, it is advisable for applicants to first turn to their own house bank with which they have at most a long history of years or decades.

A good and satisfied clientele is well looked after by the banks. Here, the banks are accommodating and only need a receipt. On the other hand, it can be problematic for customers who apply for a loan but deliberately or unconsciously hide their fixed-term employment contract. Because of the problems associated with the granting of loans under fixed-term contracts, employees often tend to hide their permanent employment.

Because the house bank does not explicitly require it, it is up to the buyer to tackle this unfortunate issue himself. Because the pay slips of the client in addition to the entry into the company also includes the departure date, the secrecy is not possible and in the worst case, even lead to a loss of trust between the client and his house bank.

Energy transition and tax credit: list of works

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The energy transition tax credit (ISCED) is again renewed for the year 2018. With some modifications made each year, this aid allows households to deduct from their taxes certain expenses related to the energy improvement works of their home. With this extension until 2018, what are the changes to the tax credit?

Certain equipment excluded from the list of eligible works

Certain equipment excluded from the list of eligible works

The tax credit for the energy transition will now exclude certain equipment considered energetically inefficient from the list of works eligible for this assistance. Thus, energy-efficient boilers consuming fuel oil for example can no longer be deducted from tax. Efficient but polluting, they still benefit from a VAT reduced to 5.5%.

However, very high performance gas-fired boilers still benefit from the tax credit up to 30% of expenses. Please note: all equipment that was previously eligible and subscribed before January 1, 2018 will be taken into account during the tax credit. In the case of very high performance oil-fired boilers, they can benefit from up to 15% of the tax credit until June 30th.

External insulation more difficult to put in place

External insulation more difficult to put in place

Regarding insulation work, some are excluded from the list eligible for a tax deduction. Specifically, the insulation work windows, entrance doors and shutters opening onto the outside can no longer benefit from this aid, except for households with a quote accepted and paid a deposit before 1 January 2018. As for other types of thermal insulation, they can still claim the tax credit up to 30%.

New categories eligible in 2018

New categories eligible in 2018

In 2018, two new categories make their appearances in the works eligible for the tax credit: the costs of connection to a heating or cooling network powered by renewable energies and the energy performance audit fees that may work to be done. Regarding the other categories of the tax credit (heat pump, photovoltaic panels, insulation, boiler, etc.), they are still present. To consult the list of works eligible for the tax credit, the government website offers a lot of information on this subject.

Why apply for credit via the house bank?

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Loans must be requested through the house bank

Loans must be requested through the house bank

The house bank principle has the advantage for the borrower that the bank and the borrower already know each other. There is a relationship of trust between the borrower and the house bank , which facilitates a credit decision. The Fine Bank can offer cheaper interest rates, since the loans are cheapened with state funds. This saves interest and thus money for the borrower.

A rating of the house bank by rating and creditworthiness can be positive for one company. And for other companies, negative reviews of a house bank can be detrimental. Especially if the bank adviser sees only the bad side of a company and does not include the prospects and chances of a company in the rating evaluation! Then it’s time to think about a new house bank! But this is not always easy for the self-employed, craftsmen and freelancers. Because this includes a good corporate concept to convince a new bank or bank of a planned financing with state subsidies, loans and loans.

Intrasavings bank Bank is the largest development bank in Germany

KfW Bank is the largest development bank in Germany

Intrasavings bank Bank is the largest development bank, also Lite lender company in Germany and operates nationwide. It grants subsidies and loans to the self-employed, small and medium-sized enterprises as well as start-ups. For self-employed and young companies, subsidized loans are also relevant in addition to subsidized advice. An application for funding must be made through the house bank. However, funding can also be requested from the promotional bank in the respective federal state. Furthermore, the individual funding can be combined.

How can companies apply for funding?

The way to a Intrasavings bank loan is via the house bank. Either you go directly to your house bank or you get support with our financing and funding advice. If the annual accounts, collateral and credit rating and thus the rating and economic information are good to very good, then roll out the banks of the “red carpet”. But if the conditions in your company are not so positive, then there are often difficulties with government loan financing. Then the banks and savings banks prefer to sell their own loans more expensive, or increase the current account with high conditions.

In such cases Intrasavings bank Bank recommends: “Get a neutral business consultant”. And we specialize in helping you in difficult times with a loan, financing or debt restructuring. There are many financing options. From a corporate concept to a new house bank or alternative financing options without a house bank!

The exceptions to the house bank principle

Under normal circumstances, state funds from the Lite lender company must be applied for via a so-called house bank before the start of a measure. But there are also many exceptions:

  • Grants can sometimes be requested without a house bank
  • For self-employed companies, there are many alternative financing options without a house bank

The exception to the principle of a house bank is the granting of subsidies. Grants can be requested directly from the Lite lender company and are also paid directly to applicants. Public borrowers such as municipalities and cities are also served directly. In order to use subsidies, the Fine Bank cooperates with local banks. For certain promotional products, the major bank takes up to 80% of the credit risk.

Disadvantages of the house bank principle

Disadvantages of the house bank principle

When a loan is requested by an entrepreneur, it is advised by its principal bank. And every bank is of course geared towards maximizing profits. Therefore, each bank will first try to offer their own loans instead of applying for funding through the promotional bank! Because the house bank receives only a smaller margin from a financing through the Fine Bank.

Many entrepreneurs are thus in a so-called ” banking trap “! Because most entrepreneurs, self-employed, craftsmen or freelancers rely on their house bank. But at least now you are informed about it and can be advised by a credit counseling neutral and independent. After all, business consultancies receive 50% to 80% support from Good lender.

What are Fine Bank subsidies?

The promotional bank supports small and medium-sized enterprises up to a turnover of 50 million USD or a maximum of 250 employees with low-cost loans and a release from liability for start-up credit start-up and entrepreneurial loans for small and medium-sized enterprises. This facilitates the credit rating of the house bank. In many cases, this will only enable financing for small and medium-sized enterprises.

Bank Credit student experiences.

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Where the German State Funding or the secondary activity is no longer sufficient, my experience with the student loan can help. However, a personal bankruptcy does not grant credit. Especially if you have little experience in financial matters, it is helpful to consult your parents or an independent counseling center such as the Studentenwerk. Meanwhile, there are a few other offers from private banks, some of which have since withdrawn. The popular Intrasavings bank loan received a point deduction in the cost area, as interest rates were not quite favorable.

Student Loans Credit Problems

Student Loans Credit Problems

“With a Intrasavings bank loan, only the interest payments are secured, but there is no job guarantee.” More than 90 percent of students opt for two public providers: First, the Intrasavings bank student loan, which pays up to 650 USD per month. With the education loan of the Federal Office for and with a maximum of 7200 USD, people in higher semester rather than in a restaurant should be allowed to study.

Credit institutions and savings banks as well as student services provide loans. Investors are buying shares of funds that will then support selected students. The student in the Federal Republic takes up a bond business. According to the Studentenwerk, the students’ income usually comes from mixed financing. Slightly more than every third person receives a free refinancing, every fifth person a savings potential.

Over 85% of the students receive scholarships from her. Especially with dropouts, a loan can quickly lead to problems. The analyst of the Center for University Development (CHE), who analyzed 31 loans, warns: “Some providers want to take the capital right away. Anyone who does not know whether he completes his studies, for whom the credit is the right choice. “

You are studying for a job with which you want to pay off the loan. “If possible,” says the CHE researcher, “you should avoid a student loan.” Loans are not fundamentally bad, many people can only end their lives with the help of a loan, he emphasizes. But not every one is suitable for every student.

Loan can quickly lead to problems

Loan can quickly lead to problems

So you should never take out a student loan just to be able to treat yourself more. Before signing the contract, you should check whether you can receive a scholarship abroad or whether you are entitled to study in Germany. 

However, he only has to repay these in small installments five years after the end of his studies – up to a maximum of USD 10,000. Who can not get it? In the view of the reviewers, this should not finance the entire study program on time. The child benefit is up to the age of 25 years, you can get a job, you may be able to contact a parent or grandparents.

If this is not possible without credit,advises the Intrasavings bank loan because it is variable in the repayment phase. The lowest price is only 20 USD, but is coordinated between the student and the development bank. This has the disadvantage that even larger amounts can be repaid – this saves time. Even if the student cancels his studies, he enters a waiting period in which nothing is refunded.

Anyone who does not have a job after that can go for a shift by opting for ALG 2. “For a maximum of 24 months you should then agree on partial amounts, because the interest continues to run recommends restraint on school fees and describes the case of a cancellation, which had to repay the grant within a short time.