Easy credit and no supporting documents for your urgent needs

With the Infra Bank fast credit, borrow between 100 and 600 $

Do you need money because your consumption requires a financial contribution which you do not currently have? Are you looking for a way to quickly respond to your urgent credit need? Thanks to Infra Bank, you have a different solution from those offered by a traditional banking organization, at a rate compensated by an easy and quick reimbursement.

A fast loan offer praised by the media

As a lender other than a traditional establishment, we have been quoted in the press on numerous occasions. Our solutions are accessible to all types of borrowers, an observation highlighted by the media.

Urgent credit, yes, but why?

Some situations in which our customers needed fast credit Because everyday life is sometimes made up of unforeseen events and that one can have urgent financing needs, Infra Bank has developed for you, a fast credit offer in 24 hours and 100% online. Here are some situations in which our clients needed a quick loan: Your car has broken down and you need to pay the costs of the local mechanic who does not credit you. You had to call a plumber or a locksmith urgently and the bill may be high.

The Benefits of Infra Bank Easy Credit

Thanks to fast credit, you benefit from a simple and effective solution to meet your needs without putting yourself in financial difficulty. You also have the means to dispense with conventional financing organizations such as banks, to make your loan.

An urgent loan does not imply an additional cost. Everyday realities evolve day by day and with them, new financing needs are created. This is why Infra Bank offers you an accessible, honest and reliable solution with the possibility of anticipating these expenses in your budget.

As we do not ask for proof, granting your fast credit is all the more flexible. You make your request for express credit and we will respond to it in less than 24 hours. The goal is to help you finance your short-term projects without putting you at a disadvantage.



Finances are dying, but must I pay my credit card bills?

Credit cards can make someone addicted and addicted because its use is very easy, that is, just one swipe, then the transaction is complete. The habit of swiping a credit card over time causes the bill to swell. When the bills are swollen, they just dizzy thinking about how to pay for everything at the end of the month.

If financial conditions are safe, of course, credit card bills can be paid off. However, what if the financial condition of dying will certainly cause stress. Don’t worry, here are a few ways you can do credit card users who are having difficulty paying credit card bills when financial conditions are dying, which has been reported by Good Credit from various sources

How to Pay Credit Card Bills When Financial Dying

Trim Monthly Needs

The easiest way is to cut monthly needs. For example, if you usually spend 3 liters of cooking oil in 1 month, then you can reduce it to 2 liters. The same thing applies to other needs. This pruning is not a sign that you are stingy, but only to reduce expenses per month so that the money can be diverted to pay credit card debt.

For clearer trimming of needs, try recording it in a special notebook. First of all, record all your needs for one month complete with quantity and price. After that, it’s deducted to find out your total new expenses. Hopefully, by trimming needs like this, credit card bills can be paid off slowly.

Increase the use of cash

If you have always relied on credit cards to transact, now rely on cash to pay for all expenses, including monthly expenses. Relax, you can still use a credit card. It’s just that the intensity of its use is not as frequent as before. For now, you can only use it to buy items that get a discount when paid using a credit card, the rest does not.

Reducing the use of credit cards slowly will reduce your level of dependence on this magic card. In addition, the level of consumer spending will also decrease because you are afraid of losing the money you have in your hands when shopping.

‘Minimum payment’ can be an alternative

Whatever your financial condition, keep trying to pay the minimum bill, the total of which is only 10% of the total bill. For example, a credit card bill of USD 10 million every month, you can pay the only USD 1 million for this month, and so on if your financial condition has not recovered.

However, minimum payments are not recommended for the long term. This can cause bills to accumulate because the loan principal, interest expense, and late fees will increase automatically every month.

Disburse savings or investments

Have savings or investment, right? Well, you can use the money you have been saving or invest to pay part of the bill. If your savings and investments are enough to pay all bills, what’s wrong if you use all of them so that your life can be free from the bondage of credit card debt.

To return savings and investments that have been used, you can start saving and investing again as usual. But this time using a more stringent and detailed financial plan. Thus, money can be replaced immediately. You also have savings to finance important things in the future.

Submit a loan to a third party

If you feel you can no longer afford to pay credit card bills, immediately seek reinforcements to third parties. The trick is to apply for a fast loan online or bank loans, friends, family, or anyone who can provide loans for a while. It’s quite risky indeed because the bills that need to be paid in the next month will increase, but this method is far better than the credit card bills are not paid at all.

If the situation is like this, you really have to save. If you do not want to change the old lifestyle, then there will be no hope to restore the financial condition. The opposite is true, your financial condition will be increasingly destroyed from day today.

Negotiate with the bank

The next way is to negotiate a credit card with the bank. You can apply to change the bill payment terms every month. For example, by reducing interest rates, extending the repayment period, or making other settlement agreements that can be accepted by the bank.

You can go to the bank office where you make a credit card, then ask for a special meeting. For negotiations to be accepted, try to include evidence that will convince the bank that you can pay the bills. It could be by showing a certificate of ownership of property or valuables that have a high sale value.

Submit credit card deductions

If the main cause of your lifestyle change and financial dilapidation is credit cards, don’t hesitate to cut your credit card immediately. Cutting credit cards here is not by cutting, but by stopping the use of credit cards for a while. Submit a credit card deduction to the bank and include the reason why you did it.

Even though the credit card has been deducted, you still have to pay the bill until it is paid off. This deduction is solely to avoid increasing debt as a result of using credit cards.

Don’t Make the Same Mistake

If implemented seriously and with full commitment, the above method can help you get out of the financial trap due to the use of credit cards. One thing you need to remember is don’t repeat the same mistake a second time so that your financial condition does not return to ruin and collapse.

Try to make new financial plans, which can make your finances healthy in the long run. If you still want a credit card, then you must commit to using it wisely and pay your bills on time.

Credit rates: current trends and outlook

According to the latest Cream Bank statistics published on October 5, home loan rates are strengthening and new production is slowing. However, Best Bank noted in September and October that several large banks lowered their rates, in order to attract borrowers who were actually more cautious about the start of the school year. Analysis and outlook by 2018.

According to the latest Cream Bank statistics published on October 5, home loan rates are strengthening and new production is slowing. Indeed, “the gradual rise in the average interest rate on long-term and fixed rate home loans was confirmed in August 2017 reaching 1.66%, after 1.62% in July and 1.50% in December 2016.

The annual growth rate of loans to individuals remains high in August (+ 6.1%, after + 6.2% in July), still supported at the same time by the dynamism of home loans (+ 6.0%, as in July) and consumer loans ( + 6.0%, after + 6.2%).

Excluding renegotiations, monthly production adjusted for seasonal variations in housing loans fell (10.7 billion dollars, after 13.8 billion in July) ”.

“Since the beginning of the summer, we have seen a slight drop in demand, including in September, a traditionally very dynamic month for real estate …”, confirms the credit broker Best Bank, in a press release published on October 5.


New rate cuts in September-October

“Pending government measures, borrowers have been rather wait-and-see but the trend should now reverse… It is in this context and with the aim of maintaining a sustained level of activity that several large banks have declined their rates again in October…” analyzes Jenard Labra, Managing Director of Best Bank.


Credit request: down 2.5% over one year

“After a record first quarter and 1 st overall dynamic half, since the summer, credit demand was down slightly (-2.5% yoy), particularly in connection with declining loan renegotiations (only 6% of requests in September against 30% a year ago ), the quieter summer period and the wait-and-see attitude of borrowers who were waiting to have more visibility on the government’s fiscal and housing policy.

Many professionals have perceived this slight drop in activity, especially in view of the exceptional level of activity observed in the first quarter. The rate hikes had boosted demand, which finally weakened this summer, linked to a lack of visibility. The activity should now start again, all the more so the banks remain in strong conquest of customers in spite of production targets already reached. But the counters will soon be reset and the banks on their 2018 targets, “analyzes Alexandra Webber, director of bank relations at Best Bank. From the beginning of November, the requested credits will not be released until the beginning of next January and therefore counted towards the 2018 production ”.


Aid for future buyers is shrinking

“PTZ refocused in tense areas in the apartment, removing APL accession, elimination of state premium tax and $ 1525 PEL beginning on 1 January 2018: aid for future buyers are reduced as skin sorrow.” Regarding the ELP, it is a way to build up a contribution because of the regular payments imposed, which is now an asset when you want to become a homeowner, but they will now be taxed from the first year, lowering net earnings savings… And if in the current context of historically low rates, a rate at 2.2% does not seem attractive, it should be remembered that in early 2016, mortgage rates were preciselyaround 2.2% on 15 years! Being able to borrow at this rate level could therefore become very advantageous in the event of a rise in rates … It is therefore better to open a PEL before the end of the year because the new PELs will be more taxed and will no longer be able to benefit from the premium. ‘State of $ 1,525 maximum … ”, explains Alexandra Webber.


Level of credit rates essential for the dynamism of the market

Still, don’t worry about next year. In 2018, in this context of more limited purchase incentives, the level of credit rates should be more than ever, an essential factor for the dynamism of the real estate market, ”anticipates Alexandra Webber.

On average, at Best Bank, “we can currently borrow at 1.45% over 15 years, 1.65% over 20 years, and 1.85% over 25 years”. Still attractive rates.

Millennial Interested in Having a Credit Card?

Credit cards are not a rare item that only a handful of people have. At present, there are more and more credit card users, even users are dominated by millennials. This is very reasonable considering the modern millennial lifestyle requires ease, effectiveness, and efficiency in transactions.

If you are a millennial who is interested in having a credit card, before applying for making a card, you should first meet the following five conditions so that the process of making a credit card is faster and smoother without rejection from the bank.

Choose a Bank with an Easy Filing Process

Applying for a credit card for the first time is not easy, because your application will most likely be rejected. Fortunately, there are many banks that provide credit card application facilities. If the submission at one bank is rejected, there’s no harm in trying to submit an application to another bank.

However, before that, you should first find out which bank accepts the first credit card application. Usually issuing banks offer easy credit card manufacturing processes, such as private banks. Simply complete the requested conditions, then the desire to have a credit card will soon be realized.

Make sure the age is quite mature

The minimum age to apply for a credit card is 21 years. Less than 21 years, then the submission will automatically be rejected. At this age, someone is considered mature and independent to take care of their finances. In contrast to children who are still aged 17 or 18 years who tend to be unstable and careless in storing goods.

Even if there are children who already have a credit card at the age of 17 or 18 years, it is certain that the credit card is the property of their parents. So, the card the child uses is an additional card. Before being used for transactions, the child must first ask for his parents’ approval.

Already Have a Job and a Permanent Income

The responsibility of credit card users is enormous. Apart from being responsible for maintaining the confidentiality of cards, users must pay credit card bills regularly. If not, then there are sanctions that must be borne, in the form of fines or threats of credit card blocking.

That is why credit cards are only intended for people who are already working. Because basically they already have a steady income to pay off credit card bills. As a result, the installment payments are always smooth every month.

Have your own savings book

For those who do not have a credit card, you are required to attach a photocopy of the passbook for the past three months. The aim is to ensure true financial condition. If the transaction record in a healthy savings book, then the request for making a card becomes easier.

Well, for those who already have a credit card, you must attach a photocopy of your credit card billing history for the past three months. The purpose of this attachment is the same as a savings book, that is, applying for a new credit card can be easy.

Smart in Managing Finance

Do not try to apply for a credit card if your financial history is bad. This is the same as getting yourself into a crocodile pit because having a credit card will only add to the problem. Better to choose other payment alternatives that are not less good in terms of facilities.

If the credit history is bad, it is not impossible if the issuer will confiscate valuables, such as a house or car as collateral for repayment. So, first, consider before applying for a credit card.

The products and benefits offered by credit cards vary, depending on the type and policy of each issuer. Choose a credit card wisely that is according to your needs and abilities so that you can enjoy the benefits of a credit card to the fullest.

All about bank loan insurance

When you take out a mortgage, for example, the lender may require bank loan insurance. If you keep the freedom to choose the one you like, ask carefully beforehand!

If you have already simulated a bank loan, you have probably noticed the mention APR (annual effective annual rate), indicated right next to your rate. This indicates that the rate is inclusive of all costs, including borrower insurance.


Borrower insurance: what does it cover?

Borrower insurance includes 3 guarantees:

  • The death guarantee. In the event of the death of the insured, the insurance takes over to reimburse the remaining capital due on the day of death.
  • The invalidity guarantee. It is granted as an extension of the death guarantee and may report to functional disability, inability to exercise a professional activity or the total and irreversible loss of autonomy.
  • The job loss guarantee. It can cover the risk of dismissal in the case of a mortgage.

If you borrow with two, you can choose the distribution: 100% on two heads or 80% or even 50% each. It’s up to you to play the parameters according to your need for security and your financial resources.


Change insurance more easily

A credit institution may require you to take out borrower insurance. However, you are not required to accept their insurance offer and can freely choose the establishment that will insure your home loan.

Even if you accept your banker’s proposal, there is always time to change your mind, thanks to the provisions of the Consumer Law, known as the Hamon Law:

  • You can cancel your bank loan insurance within 12 months of signing your contract, provided that the new contract includes guarantees equivalent to the previous one.
  • After the first year, you can change your insurer every year if you wish. To do this, simply send a registered letter to your insurer at least 2 months before the due date.


Comparison is not always right

Read your insurance proposal carefully before accepting it. The amount of the insurance premium should not be your only indicator. Your choice must also report to:

  • The exclusion clauses of certain contracts. Depending on whether you are a smoker or not, whether or not you have health problems, you will not always be covered in the same way.
  • The level of coverage. The insurance company can choose to take over 30%, 50% or 100% of your due date (in the event of work stoppage) or of the outstanding capital (in the event of death). Check this point carefully to avoid cutting your savings in the event that the insurance does not cover the full cost of the credit.
  • The cost of the options taken out under an insurance delegation is aligned with the level of guarantee offered by the lender’s contract.
  • Any waiting periods or deductible, during which the insurance will not intervene.

Lite Lending borrower insurance supports the real estate credit offer launched by Lite Lending. With its three levels of insurance – Security, Comfort and Senior – it adapts to all situations and protects you effectively.

Preliminary agreement for the purchase of an apartment – take advantage of the mortgage loan offer

Buying a flat or house is a serious investment that can force buyers to take advantage of the mortgage loan offer to finance part of the costs involved.

Before a final notarial deed is concluded confirming the transfer of ownership of the property to buyers, a preliminary contract is usually signed. What provisions should it contain, in what form is it concluded and what are the consequences for the parties to the contract?

What is a preliminary contract?

In many cases, the buyer of the property cannot immediately conclude the relevant contract with the seller – a notarial deed for the transfer of ownership. In such a situation, a preliminary contract is usually signed. In the Civil Code, in art. 389, it was defined what such a contract actually is.

One or both parties undertake in it to conclude a designated contract (promised contract) in the future. It can be said that it is a document obliging the parties to conclude a final agreement. This is a preliminary declaration of intent in which the parties undertake to conclude a final property purchase and purchase agreement.

Most often, the preliminary contract for the purchase of an apartment is signed when, for various reasons, including financial agreements, the final contract cannot be concluded immediately. If after the conclusion of the preliminary contract one of the parties fails to fulfill the contract, its provisions allow the other party to effectively pursue its claims.

What should the preliminary purchase contract contain?

Buyers and sellers of apartments should know what the preliminary contract for the purchase of such property looks like. A template may be presented by one of the parties or a real estate agent if he/she participates in such a transaction. What should the preliminary purchase contract contain? Its basic elements are defined in the Civil Code.

Proper formulation of the provisions of the preliminary contract is very important because of the possibility of future redress by the parties.

The preliminary contract for the purchase of an apartment should contain a minimum of such provisions as:

  • determining the subject of the sales contract,
  • determining the parties to the contract – buyer and seller,
  • property price.

Due to the Principle of Freedom of Contracts, the parties may freely shape other provisions of the preliminary contract, although everything must comply with existing law. These rules cannot oppose the rules of social coexistence, as well as the very nature of the preliminary contract.

It cannot oblige the parties with a record that cannot be met in reality. In principle, the preliminary contract for the purchase of an apartment should indicate the provisions of the final contract, i.e. the final contract, signed in the form of a notarial deed. It is good to include in it:

  • data about the flat – its location, address, building condition, area, price;
  • personal data of the parties to the transaction – names, surnames, dates of birth, addresses, ID numbers;
  • deadline for concluding the final contract – although the provisions of the Civil Code do not require it.

The conclusion of the final agreement may not be demanded if no deadline has been set for the conclusion of the final agreement within one year from the date of the conclusion of the preliminary contract.

For the safety of the parties to the preliminary contract, it is worth including the maximum precise date of concluding the final contract and avoiding ambiguous wording as to such date. The date of the final contract can be determined in several ways:

  • providing the cut-off date by which the promised contract is to be concluded;
  • providing a specific date when the final contract is to be concluded;
  • by accurately marking the end of the period by which the final contract should be concluded.

You can indicate both the date of the conclusion of the final contract in the preliminary contract and the condition under which the final contract will be concluded.

The preliminary contract may include the payment of an advance or advance payment by the prospective purchaser of the property. It is very important to determine what the payment made by the buyer to the seller is in this situation.

What does the preliminary contract for buying an apartment on loan give?

The circumstance justifying the conclusion of a preliminary contract for the purchase of an apartment is taken by the potential buyer for a loan for an apartment. Banks, when granting a loan for the future purchase of the real estate, very often demand a form of security for the liability, which may be a preliminary contract for the purchase of a mortgaged flat.

Then it is treated as a reservation in a bank, i.e. it is known that the customer has every chance to buy a given property when granting a financial commitment. When applying for a mortgage at a bank, it is very often necessary to attach the said contract to the application.

The preliminary contract for the purchase of an apartment for a loan may include a provision that the promised contract will be concluded, provided the buyer receives a positive credit decision from the bank.

The cost of the preliminary contract for the purchase of an apartment – how is it?

We already know how important the preliminary contract is to buy a flat. How much does such security cost for parties? If the preliminary contract is concluded in the form of a civil law contract between the parties, it does not involve additional costs.

However, it is also possible to conclude a preliminary contract in the form of a notarial deed and then the contract is signed in the presence of a notary public, who charges a notary fee for drawing up the contract and certifying it. If only a preliminary contract is concluded with a signature authenticated by a notary public and the notary public does not check its content, the cost of its conclusion is a maximum of about USD 100 gross.

The final fee depends on, among others from the number of signatures to notarial certification. The tax for one signature is USD 24.60 gross. It is different in the case of a preliminary contract in the form of a notarial deed. It involves higher fees.

The notary’s remuneration, i.e. notary fee, depends on the value of the property. To this must be added the possible fee for the land and mortgage register application for claim disclosure – USD 246 gross. This cost is the notary’s tax for applying.

In addition, those concluding the preliminary contract in the form of a notarial deed will pay USD 150 of the court fee and USD 100 for copies of the notarial deed.

 How many signatures for a loan?

You are currently married and you wish to take out a consumer loan or a mortgage loan. Perhaps you would like to take out a loan alone or together. What are your rights and obligations with regard to signing a credit agreement?

Can I sign a consumer credit or a mortgage credit alone or do I have to sign with my husband or my wife? The point on these important questions which essentially concern the choice of your secondary matrimonial regime


Some notions about matrimonial property regimes

The matrimonial property regime is a set of rights and obligations which will govern the personal and property relations of the spouses between themselves and the spouses vis-à-vis third parties, in particular with regard to financial commitments.

The law distinguishes between the primary plan and the secondary plan:

The primary matrimonial property regime

This regime is provided for by law in the Civil Code and applies automatically and imperatively to all couples married in Belgium. It is therefore impossible to depart from it. The primary system essentially aims to define the rights and duties of the spouses among themselves as well as to ensure the protection of the family’s main accommodation.


The secondary matrimonial property regime

This system organizes relations between spouses and third parties, in particular from the point of view of financial commitments. A distinction is made between the legal regime and the conventional regime.

The legal regime is the community regime. In this system, the spouses remain the owners in their own right of the property and assets they possessed before their marriage. On the other hand, all property acquired during the marriage is presumed to be common unless declared otherwise by the spouses. Likewise, property received by succession remains in its own property as well as that made by declaration of re-use following the sale of its own property. In the absence of a secondary matrimonial regime chosen by the spouses during a marriage contract, it is this regime which will automatically apply to the spouses.

The spouses also have the possibility of derogating from this legal regime by adapting another form of secondary matrimonial regime during their marriage contract: example: the regime of the separation of property or the regime of the community reduced to assets.


The application of matrimonial property regimes to consumer credit

The primary diet

The primary regime defines some imperative principles:

  • Each of the spouses contributes to the expenses of the marriage according to their faculties;
  • Any debt contracted by a spouse for the need of the household and the education of the children is common and commits jointly the two spouses on the whole of their inheritances.


The legal secondary regime known as the “Legal Community”

In this regime, there are three heritages:

  • The husband’s own heritage;
  • The wife’s own heritage;
  • The common heritage of the spouses.

Each of the spouses manages their own property alone, except for the own building allocated to the family’s main accommodation (the owner spouse must have the agreement of his spouse);

The common patromine responds to the principle of concurrent management, that is to say that each of the spouses can perform an act alone and perform all the management actions. However, the debts contracted by each of the spouses in the interest of the family are common and they involve the three heritages.

There are exceptions to the principle of concurrent management: certain particularly important acts of management require the signature of both spouses:

  • Take out consumer credit;
  • An installment purchase;
  • The purchase, sale, mortgage of a building;
  • The assignment, the pledge, the lifting, the reception of the reimbursement of a mortgage debt

In summary with regard to the legal regime

  • Each spouse can do the acts of daily life performed for the needs of the household or the education of the children. thus, a spouse can contract alone a credit intended for the need for the household and the education of the children;
  • In practice, however, institutions and credit companies will require the signature of both spouses;
  • In any case, the debt is common and recoverable from all the assets;
  • In terms of consumer credit, installment purchase, mortgage credit: joint signature is required without possible exemption.


The conventional secondary regime for the separation of goods

In principle, each spouse can act alone for the management of their own heritage. On the other hand, all the establishments and the credit companies will require the signature of the two spouses to avoid later discussions as to the character of the debt intended or not for the need of the household and the education of the children.

New record for mortgage loan rates

Mortgage lending rates have hit a record low. For more than 70 years, borrowers have not had nominal rates below 2.90%. According to the Good Finance observatory’s monthly report, the average mortgage loan stood at 2.85% in May 2019.

The household solvency indicator is recovering while the cost of mortgage loans is falling. Homeowners who took out their loan at a time when rates were higher than today, would be well advised to request a loan repurchase.

Real estate rates are doing prowess

The record was broken down

According to the study conducted by the Good Finance observatory, you have to go back to the 1940s to find such low mortgage rates. An average of 2.85% is what borrowers could benefit from buying homes. The previous downward record was reached last year at that time. In June 2013, the average nominal rate recorded was 2.90%.

The mortgage brokers who, eager to sell, had predicted a rate hike, are at their expense. And yet, the drop in the key Best Bank rate could have inspired them better. No one can say today if the trend will reverse, continue or if rates will stabilize.

A difference of 9 points compared to April

The real estate sector was already rubbing their hands in April. Average rates fell to 2.94%, including 2.93% in the old and 3% in the new. The performance was even better in May, with 9 points less on average. If home loans for new programs only earn 2 points, in the old one we have gained 8 points.

The figures are even better in the construction market. The Good Finance survey shows that rates fell to 2.79% in May, compared to 3.12% in December 2013.

We hardly borrow above 3.5%

Almost all borrowers in May 2019 took advantage of the low rates. Figures from the Good Finance survey show that 92.3% of mortgage loans were granted below 3.5% of the nominal rate. This leaves only 7% of contracts between 3.5% and 4%, and 0.6% from 4% to 4.5%. No mortgage has been granted above 4.5%.

Better household solvency

Another factor came to give balm to the hearts of first-time buyers. The fall in the prices of old real estate, even if it is small, allowed buyers to have a greater personal contribution. While in 2013 they generally benefited from less personal capital than they could raise in 2012 (-5.6%), the situation is now reversed. The level of personal contribution from buyers has recovered by + 2.6% over the first 5 months year-on-year.

A consequence of lower rates: costs decrease

A direct consequence of the rate cut is the decrease in credit costs. Borrowers for April will need 3.82 years of income to pay the interest. Those in May will only need 3.77 years of salary. However, we note that the cost of real estate operations has been rising since the start of 2019. With + 0.9% in the first 5 months, the variations closely follow that of inflation.

Almost 22% of mortgage loans over 15 years

The low mortgage rates allow households to repay shorter. While it took an average of 205 monthly payments (17.1 years) to repay the loans taken out in April, it only took 202 months (16.8 years) in May.

Out of all the contracts signed in May 2019, only 0.6% report to repayment terms of more than 30 years. 21.9% of the mortgage loans taken out will be repaid over less than 15 years. 63.3% will last between 15 and 25 years, while 14.2% will be reimbursed between 25 and 30 years.

We borrow almost more at a variable rate, and yet …

The low mortgage loan rates observed in recent months have made the variable formula less attractive. The borrowers choose the fixed-rate, which however is not always relevant. In a previous article, Good Credit drew the attention of its readers to hybrid rate borrowing.

In a hybrid (or mixed) rate mortgage, the borrower benefits from a repayment period at a fixed rate, followed by another at a variable rate. Traditionally, the rate for the fixed period is lower than the average market rate, like a call. When the variable part allows variations up to + 1%, it is possible to insert a clause for waiving the prepayment penalties. This formula, therefore, remains interesting for buyers wishing to resell in the short or medium term.

Unrecognized mortgage costs

The above figures include only the nominal rate. They do not report to loan repurchases or bridging loans. Banks generally ask buyers for a personal contribution sufficient to pay the notary fees. A study commissioned by Good Credit shows that between 80% and 90% of couples have benefited from a personal contribution to their mortgage.

Evolution of real estate rates for 6 years

From 5.1% to 2.85%

In October 2008, average home mortgage rates were 5.1%. Households that borrowed loan requirements 200,000 over 20 years 6 years ago should pay loan requirements 119,436.37 in interest. At this rate, they will be lucky if after 20 years the value of their accommodation is greater than the total amount spent.

In May 2019, average home loan rates were 2.85%. Households having borrowed loan requirements 200,000 over 20 years should only pay loan requirements 62,616.99 in interest. At this price, it is already easier to realize the capital gain.

Let those who borrowed in 2008 reassure themselves, they have the solution to buy back credit.

Redeem your mortgage

The Consumer Code authorizes any borrower to have his debts redeemed by another organization. Credit buy brokers suggest finding a bank to take over your current home loan. If you had borrowed when the average nominal rate was higher than today, you are likely to save over time.

Foreign currency loan – who can get it and is it profitable?

At the beginning of 2000 and in the next few years, foreign currency loans, including mortgage loans and cash loans, were very popular among borrowers. This was due to the lower interest rate on such financial liabilities.

However, along with the huge increase in exchange rates, primarily of Swiss francs, banks in Poland tightened the criteria for granting foreign currency loans. Currently, only a few customers can receive them. Who can get them and is it still a profitable option?

Foreign currency loan – in other words, foreign currency loan

The definition of credit as indicated in art. 69 of the Banking Law (the Act of 29 August 1997 – Dz. U. 2019. 0.2357) defines the loan agreement as an agreement in which the bank undertakes to make available to the borrower for the period of time specified in the agreement the amount of cash intended for a specific purpose, and the borrower, in turn, undertakes to use it under the conditions specified in the contract.

The customer must return the amount of the loan used together with interest on the specified repayment dates and pay a commission on the loan granted. The loan agreement must include loan amount and currency. If it is a currency other than Polish, then we are dealing with a foreign currency loan.

What is a foreign currency loan? These types of loans are also called foreign currency loans. These are liabilities that are granted in a different currency than the one in force in a given country. In what currency is the currency loan granted? In Poland, it is most often a loan in euros, in Swiss francs, British pounds or in US dollars.

A characteristic feature of foreign currency loans is that they usually have lower interest rates than zloty loans due to low-interest rates in other currency zones.

Acts regulating the granting of loans in foreign currency

The basic legal act regulating foreign currency loans is the Banking Act of 1997. It was amended on July 29, 2011, as a result of which a new provision regarding foreign currency loans appeared in it. On August 26, 2011, the Act of July 29, 2011, amending the Banking Law Act and some other acts came into force in Poland. Of Laws No. 165, item 984, called the anti -read act.

In art. 69 point 4a of the Banking Law, it was indicated that in the case of a loan agreement denominated or indexed to a currency other than the Polish currency, the loan agreement should contain detailed rules for determining the methods and time limits for determining the exchange rate, on the basis of which, in particular, the loan amount, its tranches and principal and interest installments and the rules for converting the payment or repayment of the loan into the currency.

The same amendment to the Banking Law meant that in the case of credit agreements denominated or indexed to a currency other than the Polish currency, the borrower may repay principal and interest installments and early or partial repayment of the loan directly in that currency.

An important legal act regarding foreign currency loans, or rather their repayment, is also Resolution No. 391/2008 issued by the Good Finance Investment Corporation regarding the adoption of Good Finance (II) concerning good practices in the field of mortgage-secured credit exposures.

Thus, the GFIC attempted to counteract the practices of banks regarding the determination of spreads significant when repaying foreign currency loans. From now on, based on a resolution of the Good Finance Investment Corporation, each bank should allow the customer, at his request, to repay the installments in the index currency with a loan indexed with a foreign currency rate.

In connection with Good Finance (II), as of January 1, 2009, banks are required to inform clients about currency spreads and risks related to them, as well as to make available to clients historical exchange rate lists. Good Finance specified that the bank should not use currency spreads other than standard rates used for products and transactions.

In what foreign currencies do banks grant loans?

In Polish banks, foreign currency loan offers are marginal to loans in Polish currency. All this is due to major changes in the system for granting such obligations. Currently, you can still enlist:

  • currency loan in euros,
  • foreign currency loan in US dollars,
  • foreign currency loan in Swiss francs,
  • foreign currency loan in British pounds.

It is worth adding that a foreign currency loan can only be granted if the borrower receives income in the currency in which he wants to make a commitment.

What types of loans are granted in foreign currency?

As a rule, loans granted in foreign currency relate only to two types of loan obligations: foreign currency mortgage loans and cash foreign currency loans.

Cash foreign currency loan

Earning abroad in foreign currency means that the borrower will usually only be able to get a foreign currency cash loan from a Polish bank. Unfortunately, few banks offer currency cash loans – their provision is risky for these institutions.

All because the bank would have limited possibilities of pursuing claims if the borrower stopped paying off his liability. When applying for a foreign currency loan, the customer must earn in the same currency in which the loan is offered and have adequate creditworthiness.

Credit Advisor – Information on loan financing

When taking out a loan, loan seekers are confronted with a multitude of loan options and loan issues. Only those who obtain comprehensive information in advance can later choose the right loan and find cheap loans. In addition, banks are increasingly offering the option of securing loans to protect themselves against unforeseen events. In the following, we will show you important topics relating to taking out and using loans.

Credit requirements

In order to be able to obtain a loan, loan seekers have to meet various credit requirements before the bank makes its commitment to borrow. These requirements are based on the type of loan taken out and the conditions of the bank. The most important credit requirements are a positive Credit Bureau information and a regular income. Certain securities can also be mentioned as a requirement.

Credit Bureau

Credit Bureau is an institution in Germany that collects data and makes it available to the lending industry. The stored data shows, among other things, whether loans granted to this customer are at risk of default or are expected to be repaid on time. This information from Credit Bureau will be used, among other things, when bank customers apply for a loan. If negative information such as a loan termination is available, no loan can be granted.

Credit rating

Creditworthiness is understood as the creditworthiness of a person. The banks determine the creditworthiness in order to determine the probability of default on their loans. The creditworthiness is calculated based on various data. Among other things, age, current income and the household surplus influence the creditworthiness calculation.

Residual debt insurance

By taking out residual debt insurance, it is possible to secure a loan and ensure payment in installments even if unforeseen events occur. The residual debt insurance is usually offered when an installment loan is taken out and can include various types of protection. The residual debt insurance is often taken out in the event of death, but insurance against unemployment and incapacity for work is also possible.

Debt restructuring

Debt restructuring is the taking out of a new loan to replace an existing loan. Debt rescheduling makes sense if, for example, the interest rate on the loan can be reduced or the monthly installment can be reduced. It should be noted, however, that rescheduling can only be carried out if the termination can be given for the current loan.

Loan interest

Loan interest is the fee that banks charge for money lending. The amount of the loan interest depends on various factors such as the loan term, but also the amount of the loan and the collateral provided. The borrower’s creditworthiness is also increasingly influencing loan interest rates, which is why creditworthiness-dependent interest rates are also used. Only if the banks refrain from doing so are we talking about non-credit interest rates that apply uniformly to all credit customers.

Loan repayment

In the event of a loan repayment, an existing loan is repaid early. The loan documents can be used to determine whether and to what extent early loan repayment is possible. In many cases, after observing the notice periods, it is possible to redeem the loan and replace an existing loan by taking out a new loan. This is particularly useful if lower interest rates are currently being calculated and interest costs can be saved with a new loan.

Loan guarantee

The credit guarantee is a loan security that is used in practice to secure loans. In the case of a loan guarantee, a third person advocates repayment of the loan so that the bank can approach this person if the loan installments are not paid. In practice, the credit guarantee is agreed as a maximum guarantor agreement. A prerequisite for the loan guarantee is a regular income from the guarantor and positive Credit Bureau information.

The opportunities to take out loans are particularly numerous today, since the credit business is an important pillar for many banks. However, not every loan is equally suitable for all customers, as the information in the credit advisor shows. There are also various offers from the institutes, which differ in price and credit terms. A loan comparison not only helps you find the right loan, but at the same time takes out a loan with cheap loan interest.