Month: March 2020

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.