Month: July 2019

Advantage of building savings

by admin

The main advantage of building savings is state support of up to 3,000 a year, which is credited to it during the period of saving. Other advantages include the constant interest rate for the entire duration of the building savings loan and the fact that it is not necessary to guarantee real estate for a loan or bridging loan up to a certain amount (usually CZK 300,000).

Mortgages, in contrast to building savings, have lower interest rates (especially for shorter fixations) and greater variability, where the client can choose the parameters of the mortgage to suit their needs. It can choose the period of interest rate fixation, the repayment period, the repayment method (progressive, degressive) and mortgages combining the purpose and non-purpose mortgages in one product and the like can also be used. The offer of mortgage loans is also considerably wider in our market than in building savings loans.

Building savings as your own resources to complement your mortgage

mortgage

Most mortgage banks now offer up to 100% of the value of the mortgaged property, but the most common and at the same time the most advantageous in terms of interest rate is the mortgage provided at 70% of the value of the property. In addition, even if the bank lends you only 70%, you will usually want to show you how you will finance the rest of the property. So the question is where to take the remaining 30%.

Building savings is the ideal solution for this situation

Building savings is the ideal solution for this situation

To supplement the mortgage, it is possible to use both the saved amount and the regular building savings loan as well as the bridging loan. In the case of a proper loan, this combination is practically ideal, also due to the low-interest rate of a regular building savings loan.

However, situations, where the building savings client has not concluded at all and therefore do not meet the conditions for providing a proper loan, are much more frequent. Then he can use the bridging loan. However, it must be borne in mind that the client will initially face a relatively high financial burden.

In addition to repaying a mortgage and bridging loan, he is still building a building savings account to meet the conditions for a proper loan, which is substantially cheaper than a bridging loan. However, this can be eliminated by choosing a progressive method of repayment of the mortgage, where at the beginning of the repayment of the mortgage pay lower installments and gradually installments rise. The advantage of this combination is the use of state support from building savings, which is also credited during the repayment period of the bridging loan.

Building savings as a mortgage payment

mortgage

The second way to combine both products is to use building savings as an extraordinary mortgage payment. As a combined product, some mortgage banks even offer this particular combination. In the case of this combination, the client only pays the interest on the mortgage to the bank and saves the amount attributable to the loan to building savings.

On building savings, the client uses state support and saves funds for extra repayment of part of the mortgage. Once the client has reached the conditions for a proper loan, the mortgage is partially repaid. Then the mortgage is already repaid in the usual annuity. In addition to the mortgage, the client also repays the building savings loan at the time, but thanks to the lowering of the mortgage principal, the monthly payment from it will also decrease.

Procedure for granting the loan after approval

by admin

Read what is the process of equipping an internet loan after approval and approval of all loan parameters in Credit Adviser Euro.

You have registered with Credit Adviser Euro as to apply for a loan. You have selected the loan amount, the repayment period, and you have provided complete documents. Your loan request has been reviewed and approved based on the documents you submitted.

 

 

Loan Parameter Reconciliation

Loan Parameter Reconciliation

In the near future, you will be contacted by the approval department by phone to agree on loan parameters with you. They will confirm your personal information, bank details and loan amount with you. If the approval department agrees with a lower loan amount than you requested, it will agree with you and recalculate the installment according to the required repayment period.

 

Framework contract

Framework contract

When you agree to all loan parameters, we will generate a Framework Agreement. We will send you a framework agreement by mail to your correspondence address, in your own hands. The term of the contract is 4 days, the contract has to be picked up by this date. The Master Agreement contains the code you enter after you sign in to “My Zone”. Your request is then in step 2, paste the code into the highlighted rectangle, and click ‘Verify Code’ to confirm. After entering the code, your request will display the “View and Sign” text and you will see a Binding Loan Request.

 

Confirm Binding Loan Application

You confirm the binding loan request with the “Sign” button. You will then receive an SMS with a code. Enter the SMS code in the binding request and click “Confirm Code”. You have 14 days to enter a code from the Framework Agreement and sign a binding loan application. After that date, the request will be canceled or revised.

 

By entering the code from the Framework Agreement, you agree to the loan amount, repayment period, monthly payment and interest rate. When the code is confirmed, “Done!” Now your request is closed and our company sends you money to your account.

How to protect yourself from raising interest rates on mortgages

by admin

Interest rates on mortgage loans have reached historic lows this year, and many people have used this option. Some have taken a new mortgage for housing, others have just refinanced the old one and exchanged more expensive loans for cheaper.

They used low rates and saved hundreds of thousands of euros. It is hard to find the negative. It is quite simple. Lower interest = lower repayment = lower overpayment.

However, the state of record low-interest rates may not last forever and therefore need to be for the future. What can be expected in the event of interest rate is read in my next article.

Why are interest rates so low?

money

In particular, the policy of the European Central Bank is loosening behind this extra-low rate, which, by cutting interest rates to a minimum, seeks to stimulate economic growth in the European Union. This also affected Slovakia, where interest rates fell significantly. As you can see in the picture below, they were even more advantageous than in Austria and only 0.01% behind Germany.

New cards in the game, however, also distributed the law on housing loans of 21 March this year. This caused the prepayment to be at a maximum of 1% as opposed to the original 5%.

The aforementioned factors supported the impact of the competitive environment and the banks started to overtake in their mortgage campaigns to maintain or increase their market share.

However, banks have begun to cut income as a result of low-interest rates, which may have a greater impact on bank clients, ie all of us. Where a person gets, the bank must lose and vice versa. It is logical and this is the case here.

How can banks compensate for losses?

The current situation of cheap mortgage loans for housing may lead to increases in the future. Banks are likely to offset their decline in profits. Despite increased competition in the banking market, they will, therefore, be forced to include losses primarily in interest rates and other service charges.

The danger of low-interest rates

cash

Low-interest rate means cheap credit and it means cheaper housing. It is very positive that people now have the opportunity to borrow for their housing at such low-interest rates. Without much money.

But what happens if interest rates increase? How will their payment change?

For better imagination, I give an example of what may happen in the future in raising interest rates.

Loan Amount: € 70,000
Loan Maturity: 30 years
Interest rate: 1.5% for 3 years fixation
Monthly installment amount: € 241.58

Mortgage loan balance after three years repayment – € 64,329.89 for fixation anniversary.

As you can see in the table, despite the fact that the loan balance is almost € 6,000 lower, the increased interest rate with a shorter maturity of three years may mean an increase in installments of 20 to 50 percent.

The saving of funds, which is due to the low-interest rate, must therefore be seen as a space for creating reserves, medium- and long-term investments.

You can later use the money saved for a one-time deposit that will reduce your future repayment, or you can save on the early repayment of your entire mortgage.

Of course, no one can force you to postpone money and take the time to pay more due to lower repayments. However, my aim is to point out that this situation may not last forever and it is good to be prepared for every situation.

How to protect yourself from rising interest rates?

How to protect yourself from rising interest rates?

Unfortunately, nobody just avoids raising interest rates. But what you can do is prepare yourself and delay the difference between higher and lower installments. You can store more than the difference or less. It’s up to you

However, it is important to start postponing at least something. This will create a reserve that you can use to raise interest rates in the future. Own savings can be good protection.

Of course, you can not expect such an appreciation today on your current account today. To earn more, you need to reach for other products. Of course, putting your money on your current account is better than spending it all, you have it quickly and whenever you need it. On the current account, however, they lose money in value. To maintain the value of your money, it is important to earn at least inflation. However, it is best if you significantly outperform inflation.

How to pay off your personal payday loan? 3 Strategies to get rid of faster!

by admin

Asked for a personal payday loan and do not know how to organize to repay it? Calmly, we’ve brought you this article with 3 super useful tips that will help you repay your loan faster and get rid of debt! Check out.

Pay the payday loan every two weeks

loan

Instead of repaying your loan each month, you’d rather pay half the installment every two weeks. But why?

– Reduction of accrued interest since payments will be more frequent;

– You will be paying an extra portion of your loan each year, because the year has 52 weeks, equivalent to 26 payments every two weeks, ie you will be paying 13 installments and not just 12;

– By doing this you shorten the term to repay your loan.

Round the number of parcels

Round the number of parcels

If your installment is R $ 375,30 try to pay R $ 400,00, so you will be paying an extra R $ 24.70 every two weeks, or every month, avoiding the loss of funds. This amount will result in an additional $ 296.40 after one year.

Who knows, you too could not exceed the installment and add $ 50 or $ 100 a month, this will make the loan term shorter and save money on interest.

Get extra income

income

You can use the money from your 13th salary to help repay the loan faster.

Or, for example, you can divide your share of R $ 375.30 by 12 and add the result (31.27) to each payment, that is, you will pay R $ 406.57, resulting in an extra payment each year.

In short, there are several advantages of repaying your loan early, so choose a strategy and put it into practice.

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What to do with Opening or Granting of Credit Denied?

by admin

Taking credit, or borrowing is a very important decision to make, especially since it involves in many cases the attainment of a desired dream, the purchase of a property, a property, a vehicle. In addition to being in many cases the only alternative for financial contingencies, where we need a financial “breath” to get a punctual situation and put the financial planning back on track.

Approved by the financial institution

Approved by the financial institution

Often in these moments of need for credit we are faced with the situation of Openness or Concession of credit denied, which basically means that the requested credit operation was not approved by the financial institution. This may sound like bad news to the first point, but it is important not to despair, denial of credit is a great opportunity to reevaluate some points of the loan you want.

First Step – Understanding Reason for Refusal

First Step - Understanding Reason for Refusal

Often the negative credit is caused by lack of documentation or by discrepancies in the information provided in the registration with the documentation presented as proof, verify that all your data was duly filled in the proposal, verify your home address and the proof provided, your documents are valid and legible.

Proof of Income, this factor is very important in the approval of the credit, if you are a worker of a private institution, verify that you have sent the money correctly and your declared income in the register is in accordance with the amount received. Always return the latest documentation, if you have received a holiday, or commissions, in the last installments, delivered to the credit analyst, longer deadlines, so you can check your average receipts.

Self-employed workers and small business owners have greater difficulties at this stage, mainly due to the absence of documentation for proof of income, the best solution in these cases is the issuance of a decore by the accountant of the legal entity, with the joint delivery of personal income tax return physical and financial account statements can also help in this case.

Second Step – Finding Alternatives

Second Step - Finding Alternatives

If your refusal was not related to documentation, but rather by restriction related to other debts, or insufficient income, this is a sign that perhaps your planned loan is in fact not the best path in the way you are intending and needs to be done some adjustments.

Financial Restriction

Financial Restriction

In cases related to financial constraints, the best way is to look for alternatives in secured credit lines, that is, payroll loans, loans with a financial investment guarantee, property or vehicle, can be good alternatives, since they usually have real guarantees and are well accepted by financial institutions even for people with debt.

Renegotiating debts is also a good alternative, by renegotiating debts that are already in credit rating agencies, you show intent to resolve the situation and can improve your analysis for institutions in new operations.

Income Insufficient

Income Insufficient

In case of insufficient income, evaluate the total amount of the loan you are applying for, try to extend the term, so that the parcels are more appropriate for your income, and try to find alternative credit lines with better guarantees , which facilitate the approval of the credit.

In all cases, do not ever rely on just one credit institution, go to other institutions and always remember to use credit operations with awareness.