Real Estate Loan: Good News for Borrowers

 

This is news that will appeal to borrowers but certainly not to lending institutions: to take out a mortgage, it will no longer be mandatory to domicile his income at the bank or lending institution . Explanations.

Bank domiciliation, the plague for borrowers

 

Until now, to grant a mortgage, the banks were forcing their new customers to transfer their income to their institution. This practice is at the limit of the forced sale , if not considered as an unfair term. An order of 1 June 2017 had already taken place to supervise the domiciliation of income.

Since January 1, 2018, if the institution imposes bank domiciliation, it must mention it and offer, in return, a clear advantage, such as a lower rate. In addition, the obligation must be limited to a maximum of 10 years. Beyond that, the borrower can change banks without his loan contract being challenged.

The end of bank domiciliation for real estate loans

The end of bank domiciliation for real estate loans

An amendment to the law PACTE (Growth and Transformation of Enterprises) adopted in first reading by the National Assembly on Saturday, March 14, 2019 puts an end to the possibility for bankers to impose the banking domiciliation of income to their customers in return for a home loan. It ratifies 26 ordinances, including the one of June 1, 2017 relating to the offers of mortgage loan. Subject to final adoption of the law, the voted amendment will be applied from June 2019 .

The purpose of this amendment, proposed by the majority MP Coralie Dubost, combines commercial negotiation with the possibility of bank domiciliation and should facilitate banking mobility. The obligation of bank domiciliation was in complete contradiction with the European principle of free movement of goods and services .

Banks not at all satisfied

Banks not at all satisfied

However, the banks see in this amendment an unjustified attack against a little used practice. According to some, the domiciliation of income would be practiced only in one mortgage out of three. That said, it was for the banks, through this practice, to find ways to retain their borrowing customers , while facing the competition increasingly fierce online banking.

Some bankers even go so far as to say that this is a step backwards, before the 2017 ordinance comes into effect. This is however a recommendation of the CCSF financial sector) made to the government through a report at the end of January . Corinne Dromer, the president of the CCSF, pointed out that the clauses making the banking domiciliation mandatory had already, since 2004, been considered by the commission of unfair terms as unsuitable. But in trying to remove uncertainties, the order only legitimized these practices . If the counterparty is most of the time an advantage over the rate, it does not appear clearly verified as the rates are low.

 

How does the Fifth Pension Transfer work? Pensions and Loans

 

Are you an INPS pensioner ? Retired Ex INPDAP ? Retired from other social security institutions ? See oryxoman.com of critique.

For the past several years in Italy there has been the possibility for pensioners to obtain a loan of up to 75,000 euros by paying it directly with their pension.

The possibility of obtaining a loan for pensioners is called the Fifth Annuity Loan.

But how does this type of financing work specifically?

But how does this type of financing work specifically?

The calculation of the sale of the fifth pensioner is carried out directly by the Social Security Agency.

The INPS or other social security institution shall indicate the maximum amount that the pensioner can transfer by indicating it in a document called the transferable quota or transferability notice .

The transferable amount changes according to the amount of the pension itself and is calculated net of tax and social security deductions without going below the minimum pension threshold which is indicated by law each year.

To receive a free, non-binding estimate of a Loan in INPS Agreement Click here

To receive a free, non-binding estimate of a Loan in INPS Agreement Click here

The loan for the transfer of the fifth INPS provides for age limits within which the loan must be repaid to an expiry date, which is normally between 85 and 86 years .

With this type of loan it is not possible to go below the minimum pension threshold defined by the INPS.

Included in the installment and therefore without additional costs in the sale of the fifth Inps but also other Bodies in the event of death a policy is stipulated that covers the possible death of the pensioner who has contracted the loan .

Therefore, in the event that an eventual premature occurrence occurs, the insurance that has issued the policy relating to that loan will pay the remaining debt.

Even in the event of reversibility it is possible to request the transferable fee for the survivor’s pension in cases where it is not possible to request the Transfer of the Fifth of the Pension are the following:

  • pensions and social allowances;
  • civil disabilities;
  • monthly allowances for assistance to pensioners for disability;
  • income support allowance (VOCRED, VOCOOP, VOESO);
  • family allowance;
  • pensions with joint ownership for the portion not pertaining to the person requesting the transfer;
  • evacuation benefits pursuant to Article 4, paragraphs 1 to 7 – ter, of Law n.92 / 2012.

 

How Do You Choose Which Is the Most Advantageous Of All Loans

 

Against the background of the accelerated growth of ROBOR, the indicator for the calculation of variable interest rates on ROL loans, there are also evidences of tangible fixed-interest loans, which are in the portfolio of many local banks.

Although they have slightly higher interest rates than ROBOR-based loans, fixed-interest loans may soon be an asset to those who contract them if ROBOR continues to grow.

Here are some of the benefits and possible disadvantages of contracting a fixed interest loan.

Here are some of the benefits and possible disadvantages of contracting a fixed interest loan.

*The benefit of a fixed rate and a variable rate – Fixed interest loans have the advantage of not having floating rates, because the costs they include are fixed, so the borrower will know from the beginning how much he has to pay. It is one of the strengths for which this type of credit can be contracted by a person who wants to have a firm income management.

On the other hand, in the case of variable interest loans, the advantage is that when Robor decreases decreases and the credit rate. It is best that when you contract the loan you analyze two aspects: what is the interest difference between the two loans, which is the variable interest rate of the last time, and what is the risk that the variable interest rate rises above the fixed level. It only remains for the future to confirm that you have made the right choice.

Choose the appropriate personal needs loan according to the interest rate – According to the Conso.ro portal, the difference between the annual effective interest rate of the cheapest variable interest rate loan and the cheaper fixed interest loan is currently under 2 percentage points. The difference between the monthly installments of the two credits is about 10 lei.

More and more financial analysts are of the opinion that ROBOR will increase by at least 1.5 percentage points in about a year, with the current figure at 1.8% per annum for the three-month indicator. As personal needs loans are granted for a maximum of five years, it is possible that from the beginning of the lending period, fixed-interest loans contracted during this period become more advantageous than those with variable interest rates. Instead, there is also the possibility, it is right, less considered by specialists, to witness a capping of ROBOR. In this case, variable interest loans will remain more advantageous than those with fixed interest. These costs must be balanced by each debtor who makes the decision to contract a loan.

Fixed interest mortgages might be more advantageous – When it comes to contracting a mortgage, up to 30 years, the interest rate option is all the more important, because in this case we are talking about higher rates. At the same time, an increase in the rate may affect the debtor for a longer period of time as these loans are granted for 20-30 years.

There are mortgage offers on the market with fixed interest rates in the first five years, the cost being rather low and close to that of variable interest loans. These can be an option for those who want to have no surprises in terms of rate, at least for a while. Subsequently, after the five-year period, interest on credit becomes variable. If, in the meantime, market conditions have changed and this interest proves to be above the market average, a refinancing may be required.

 

Borrow $ 20,000 Payday Loans Online Via Bank Codes

 

A loan of EUR 20,000 is a good option when there is a need for a larger loan. There are few consumer credit services on the market with EUR 20,000, albeit considerably less than small-scale express and consumer credit companies. The EUR 20,000 credits mainly come from a range of loan brokerage services that bidding for loans on behalf of the customer and looking for the most appropriate financing solution.

There are a few credit services on the market that lend up to € 20,000 without collateral or guarantors, and the purpose of the loan is not sought when applying for a loan. The car or the house is thus not needed as a pledge of the loan and the guarantor does not have to ask the familiar or relatives. Although the purpose of the loan is not to be justified when applying for a loan, it is advisable to take the credit only for a carefully considered need. With a loan of EUR 20,000, the payment period is usually long, up to 10 years, so you must commit to repaying the loan for a long time.

A loan of EUR 20,000 is not available to all applicants. By law, credit can only be granted to an adult borrower, but loan services may have additional, higher age limits. Some of the loan services offer loans to people over the age of 18, but 20 years is a typical age limit, especially for larger loans. If the applicant has a valid payment defaults, no loan can be granted at all. Loan services always check the applicant’s credit information when applying for a loan, so without a clean credit, you should not apply for a loan. Finnish loan services generally grant loans only to residents of Finland. The loan cannot be granted abroad, so the loan is not available without permanent residence in Finland. Moreover, in practice, the applicant for a larger credit is always required to have a sufficient number of permanent staff. The EUR 20,000 loan is such a large consumer credit that probably all loan services require regular income from its applicants. For example, income from earnings or pensions is recognized as income. The required amount of income varies depending on the loan service and the loan amount requested.

The loan service makes the applicant a personal credit risk assessment that the final loan decision is made. It is estimated that the loan will be granted at all and at what rate. The interest rate of a positive loan decision may vary according to the credit risk assessment, whereby lower credit risk applicants receive a lower interest rate than applicants with a higher credit risk. Occasionally, the applicant may also be granted a lower amount of loan.

A EUR 20,000 credit can be applied for a variety of purposes. For example, home renovation is a typical need for a loan of EUR 20,000. Another general need for a larger loan is the combination of loans, whereby several smaller quickcuts and consumer credits are combined into a single loan. One big loan is easier to manage than many small loans. Reducing one loan will also be less expensive than shortening several smaller loans.

Applying for a loan is easy, as a loan of EUR 20,000 can be applied for online, just like smaller loans. Since a larger loan requires regular income, the application form also asks for information on, for example, the workplace and income and any other loans.

A preliminary loan decision is usually made soon, even during the same day. The loan decision can be accessed at home and consider whether to accept the loan agreement. The money is usually credited to the account within a few business days after the signed loan agreement has been delivered to the credit provider.

Is It Possible To Borrow If We Have A Bad CCR? | Credit Loan

 

Is It Possible To Borrow If We Have A Bad CCR? |Nowadays, the need for borrowing has reached many people. Unfortunately, there are times when it is impossible to cover all contributions. Thus, over time, debt obligations accumulate on various loans, and this negatively affects our credit history. Poor credit score, better known as a bad CCR in the name of the Central Credit Register, can seriously reduce your chances of getting new loans. Still, it is possible to withdraw credit even with bad credit ratings.

How is a CCR formed?

How is a CCR formed?

Before you consider taking a new loan even with a bad CCR, it’s important to be fully aware of how your credit score is formed. Although your current credit rating may not be good, you can always improve it as long as you know which factors affect it.

In the Central Credit Register you can find a detailed inventory of all loans and credits you have withdrawn in the last five years. It monitors the permanence of the payments and the total amount of payables you are currently paying off. The timeframe the register encompasses is extremely important. Your CCR can improve significantly after a credit has expired, so it is important to follow such deadlines. Repaid and terminated loans are reflected in your credit history up to six months after the expiration of the policy, so keep in mind that the positive effect on your CCR may take time.

Monthly income

Monthly income

Credit assessment is one of the main factors determining whether an applicant will be approved for a new loan. However, it is possible to withdraw credit with a bad CCR because there are other determinants.

The first important distinction we have to make is the difference in the loans granted by the bank institution and the fast loans. Bank credit terms are much stricter than the approval requirements for fast-paced companies.

A bad CCR is likely to seriously damage your chances of bank credit approval. But non-bank lending institutions are usually a little more liberal. They review a list of criteria such as monthly wages, social benefits and other sources of income. Your current payables and income play a much greater role than your credit history, so if they are good, your chances of getting a quick loan are increasing. The same criteria apply to withdraw quick credits through fully online platforms and creditors. Still, not always, even those lenders would lend you money.

Terms of bank credits withdrawn in case of bad CCR

Terms of bank credits withdrawn in case of bad CCR

Even if you can get a bank loan despite the bad credit history, your credit conditions are likely to be less favorable. When the bank institution looks at your story and notices overdue payments, the security of their investment declines. In order to secure the bank would reassess the approval of the loan you have requested, but under different conditions. Most often, loans granted to individuals with a bad credit rating are granted at higher interest rates and / or higher fees.

As with any loan you make, it is of utmost importance to be fully aware of the repayment terms so you are aware of the amounts that will be required by you monthly. In certain situations, it would be wiser to wait for your credit history to improve before you take out a new bank loan.

Quick loan conditions withdrawn under bad CCR

Quick loan conditions withdrawn under bad CCR

Taking a quick loan with a bad CCR differs by several criteria from withdrawing a bank loan. As mentioned earlier, fast-paced lenders provide more flexible terms on their loans, but the bad CCR may still have an impact on the interest rate on the loan.

Fast credit companies see the bad CCR as a signal of possible defaults on further loans. For them, however, it is often most important to be able to prove a high enough income. In this situation, it is quite possible to obtain credit approval in spite of bad credit history as long as you provide information on sufficient monthly earnings to cover repayment installments. And yet – it’s not sure whether you will surely get a positive answer.

Poor CCR of your relative

 

The bad credit history of members of your family can also negatively affect your application for a new bank loan. Banks usually require the completion and signing of a connectivity statement that allows the institution to look at the CCR of your close people – parents, children, spouses. This additional documentation slows down the process of processing the documents, and if one of your relatives has a bad credit history, this can also have a negative effect on your chances of approval.

Unlike banking institutions, fast-paced companies are not interested in the credit history of your family. With them, filling in and processing the documentation takes considerably less time, so many people resort to their services when they need a cash loan.

Reorganize your current duties

 

Some of the most common steps taken before a new loan is a merger of your current obligations into a common policy or the refinancing of consumer loans. These steps would have a positive impact on your credit rating. Keep in mind that loan repayments and their refinancing are reflected in the registry within six months.

Maintaining good organizing of your obligations, merging and refinancing also shows your responsible attitude towards the creditors. This gives a good impression to employees who are responsible for approving new loans.

The reports that are required for both bank loans and fast and online loans inevitably show your CCR. It is therefore important to organize your duties in the best possible way. If your credit history shows progressive thinking and responsive action to repay your ongoing obligations, you significantly improve the ability to withdraw a new loan.

Your chances of getting approval for a new loan even with a bad credit history depend on many other factors. Therefore, if you follow these tips and try to repay your contributions in due time, there is a real chance to be approved for a new loan despite your bad payer history. It is important, however, to assess your situation before resorting to another credit. If you think this will further aggravate your financial situation and you will wonder where to find the money and the newly withdrawn loan, it is better not to withdraw. Squeeze your teeth, try to shrink your costs and think how to get out of this position.