The credit rating depends on many different factors, including available income, marital status, number of children, occupation, etc. Of course, it also depends on equity. Older customers say I pay low because the house is inherited by my son / daughter, who can then pay off. Also, the question “how much credit I get” depends on how much the borrower is willing and able to repay monthly. What house I can afford?
When will it be impossible to build a house because of its age? From 50 years, what do you think? Credit problem?
A few years ago, I found it a good thing to convert two of my life insurance policies into attachable pension contracts. Life insurance offers $ 208 per calendar month, though I want to insure my 59-year-old wife until the end of her life. According to the current mortality table, a 59-year-old lady lives on average for just over 26 years.
If one assumes an additional interest rate of 2.25%, would be $ 370 per month less the costs and income of the insurance to pay, according to pension calculator in retrospect. The offer is based on a guideline 2004 r (unisex) and an interest rate of 0.9% and a variable earnings share of 1.35%. Incidentally, the profit share from the age of 90 falls by 0.1% per year.
This mortality table on the internet is not understandable like the normal mortality table. An independent finance scientist told me that the insurance was based on 93 instead of 85 years of life, because “commercial prudence” had to be built in. For me, it has been found that the health insurance company takes 160 per month until the end of our lives.
Regrettably, during my decision-making about seizure safety, I had tried several times only orally to get a retirement offer, but never got one. Based on the pension calculator and calculation formulas on the internet, I thought I had a rough idea of the payout. Only now did I realize that the performance is so bad.
Real estate financing – the big advantage for Austria
The real estate lending business is probably one of the most difficult financial products in the domestic real estate market. In an exclusive study, we compared the major credit institutions to see how big the differences really are and why it’s so hard to value real estate loans. Unlike traditional low-cost loans, a real estate loan is not standard.
The condition, the duration and the whole processing are very different from case to case. The reason for this are very different customer requirements and requirements of the credit institutions, which pay attention to very different parameters in the calculation of the conditions. This is shown by the big differences in our comparison.
Although for some banks small or even non-existent own funds are an absolute exclusion criterion, other banks want to pay even without their own funds.
The comparison carried out by the real-estate financing consultancy MSZ provided a similar financing proposal with 7 different lenders in order to obtain the greatest possible value from this information.
The present study is enriched every year with the latest results, so that we can now submit only the results for 2017. The real estate lending business has the following basic conditions: A very average financing approach, which can be used very well for reconciliation. Household – How do the banks calculate? The household budget is one of the essential features for the creditworthiness calculation of a customer and at the same time for the assignment of the credit condition.
All income and expenses (including real estate financing at a certain interest rate) will be charged. The monthly difference shown in the figure is calculated from this. So this is the amount left after the private spending financing, so the house bank. Every single house bank has its own calculation logic. For example, some banks only take a single instrument into the budget, even if they are two.
There are fixed goals for each position, which vary depending on the financial institution. For the same host family this results in a possible additional financing of about 200,000.00, which in the worst case (- 106,00) would not have received a real estate loan from the desired house bank. The mortgage lending limit determines how high the real estate loan can be used.
The real estate loan comparison results in a difference of 60% from the strictest to the most flexible service provider. In that case, it would be up to 140%. As a result, the entire real estate financing loan, including incidental acquisition costs, could be financed without own funds and a deterioration in the market value of the property could be easily compensated. In particular, the term is an integral part of a flexible financing concept.
With savings products, there are many ways to shorten a very long life and to guarantee a wide range of flexible and secure solutions. With a difference of 180 months, ie 15 years, the difference in transit time is considerable. Of course this is also reflected in the quota.
Even if you should not repay so long in his real estate loan (compound interest effect), a long-term with the simultaneous repayment option is the safest and most flexible. It is all the more astonishing that the financial institution currently offering the longest interest rate still pays no retirement age! Margin is the portion of the nominal interest rate that the house bank adds to the prime rate.
Thus, the condition that should be negotiated the hardest as a client, since the rate is calculated every month. The difference is a remarkable 1.625%. Does not sound like much at first, but means at least 667, – and no more than 837, – for a contract period of 30 years.
Planned on the financing costs are 170, – per calendar month or 61,200, – USD for the total duration. The monthly tariff results from the negotiated margin and the longest possible deadline. The offers of the banks were coordinated in such a way that the lowest monthly installments were calculated for each individual house bank.
The cheapest monthly rate is 514, -, which is a deviation of 421, – at the cheapest rate of 935, – $. Those who set a very low quota can therefore benefit twice from a favorable price comparison. 2. What is a real estate loan suitable for? Building or buying your own home is for many people the realization of a great dream.
A real estate loan is a good option in this case because it ensures the installment of the house. Nevertheless, it is necessary to know how a real estate loan actually expires. Bank-independent consultations are therefore particularly important in order to investigate all the options that are of interest to the respective project.
Today there are many ways to buy a house, but not all are recommended in every situation. Home loans or real estate loans are the most common option. With increasing capital investment, you need to raise less funds from the house bank and repay the real estate loan more easily.
However, one should be aware that the conditions for monthly repayments are much better than for a corresponding equity ratio. Not to be neglected in the calculation of the construction costs, that in addition to the actual housing construction also “additional costs” arise. You should also be honest with yourself on the monthly salary and really only do the project if you are convinced that you can finance everything without big problems.
In particular, it should be noted that repayment of the loan is made from two interest rates, unless otherwise provided for by contract. Bank Surcharge: This is the part of the interest that the house bank charges for billing. Key interest rate: This is the prime rate, and also the lending institutions lend each other cash. It is very helpful to find the fare at a level that suits you.
Therefore, it is worthwhile in some cases, in addition to the actual real estate loan to conclude another installment loan agreement. The best way to start here is to consult an independent loan consultant. With the right interest rate for the real estate loan, it is above all important to think about the term. In the longer term, the interest rate is lower.
Some tend to choose a short term to prepare the loan. A change to a higher operating time is not possible. On the other hand, however, you can prematurely pay off as soon as possible and finish as quickly as if you were to choose the short term at the same time.
Of course, there are other ways besides the conventional real estate loans, to realize the desire for a house of one’s own. This will secure the loan upwards by 6%. So there is in addition to the real estate loan of the housing bank further financing options. But not all are suitable for each client unhindered. How can I find the cheapest real estate loan?
The search for the cheapest real estate financier is no easy task.
Agreat relief for regular installment loans or microcredits is the network, because with a free real estate loan comparison you can compare several institutions and their conditions in a few moments. All you have to do is enter some important information in an input mask, such as the loan period, the available equity and the desired amount that you want to borrow from the house bank.
For real estate loans, this is already difficult. For a detailed comparison you have to visit different banks. The bank surcharge is always converted from the financing side to the financing side. A consultation and a loan comparison by a specialist is therefore inevitable. Real estate loan – up to what age can it be accepted? Many people still want to buy a property and also finance it later.
Real estate loans typically have terms of more than 20 years, in some cases 30 or more years. Borrowers over the age of 50 usually reach retirement age. Because pensions in Austria usually only reach 60-70% of the net pay, the offices rightly assume that their income will be lower.
If this is no longer sufficient in the pension to finance the budget determined by the house bank, the permit can not be granted. For the house bank, however, this is initially of minor importance, since for property loans always a life or risk insurance is complete. However, this is very expensive when starting in advanced age.
Here is a calculation example: Human is 30 years old, all other sizes are taken over and run identically for human 2. Human M is 50 years old. The sum insured amounts to 100.000, – with a duration of 25 years, the cover sum sinks (the outstanding loan amount is always secured, but not more).
Then many insurers will no longer offer the entire duration of 25 years or paid supplements. Even for the house bank itself, the topic of age is of secondary importance, since the finances in the household pay off, since they can be aligned to life and property insurance. In the case of the exhibition, the payment is made in any case to the house bank.
The credit limits are calculated from the total financing costs from which the equity interest is retained. Some banks give up on insurance with a limit of about 20%. If the borrower really dies, the house bank is able to cover the fees incurred by the real estate sale.
Otherwise, if you want to get the house, the offspring will have to start with home financing. What is there for a solution for retirement financing of real estate? Anyone having problems with conventional land finance, be it because of a lack of life insurance or because of a budget problem caused by low pensions, has other financing options.
After the death of many borrowers, the property they are financing is inherited. It may therefore make sense to have the offspring as guarantors of the financing. This gives the financing house bank the necessary budget security and may also offer more favorable conditions. For many older people, life insurance, building society savings, equity deposits and other deposits have accumulated that were not disregarded in refinancing.
Be it as a pure security for the banks, but also as additional equity in the financial sector. Because of the complexity and the confusing market, life expectancy is often the bottleneck for older people who want to buy a property. Due to the lower income in the pension, interest hedging in home equity financing is of great importance.
As a rule, the working population can expect annual collective wage increases, whereas for pensioners this is only the case in exceptional cases. A long-term home savings loan is quite tedious for retirees. In this regard, the savings banks are comparatively limited, although different from case to case. For many, the only remaining option is the upper limit on interest rates, which, depending on the terms of the bank loan, is an advantageous upward curve.
Conclusion: The large real estate loan comparison makes it clear what one has long suspected. It was not possible to name the credit institutions in this reconciliation, as neither of the two institutions would like to publish their most favorable terms. More important, however, is that these conditions of credit institutions fluctuate steadily. Only those who find a renowned and knowledgeable financial partner, can be sure to get a very good price-performance ratio.
The customer is familiar with the product and the product and can inquire quickly with the responsible credit institutions.