Having your own apartment or house is the dream of many young couples and families. The price of real estate keeps rising, so why throw money for rent when we can move into our own, right? We divide consumer loans for housing into two groups. The first is a classic mortgage, which usually requires a mortgage and so-called American mortgage, here 100% is not a home loan, because we can use this money for anything. What home loan really pays off?
Loan for housing in the bank
Of course, it depends on how much you are interested in and how long you want to repay it. For amounts higher than USD 1,000,000, it is worth choosing a mortgage that is provided at a rate of 1.68% per annum. It is good if you have at least 10% of the amount you are trying to reach. Banks are able to offer you the best market conditions. Maturity of up to 30 years and much more. If you are interested in a lower amount you can apply for a classic home loan. This money is most often used for the reconstruction of the sanitary unit or the living room. This product does not require real estate collateral. This service is ideal for buying new furniture or building a garage.
Housing loan, advantages: investment property
- freedom. you can live as you want, and not according to how others tell you
- No rent, you no longer have to worry about rising cartoons
- excellent investment in the future (when choosing a good location the price of the property rises even faster)
- possibility of appreciation
- old age security
Building savings loan
If you have building savings, you can finance your housing directly from it. There is a choice between regular and bridging credit. If you do not meet the conditions for obtaining a regular loan, you will have to choose the above-mentioned bridging loan.
- save at least 30% – 50% of the required amount
- save at least 2 years
- obtain a sufficient savings number (this data is assessed by each bank differently)
Non-bank housing loan
Non-banking companies also provide housing loans and even people who have entered the register of debtors and the bank refuses to lend them. That sounds very nice, but you usually pay twice as much as a bank. Outside the bank, you should rather apply for a smaller loan where zero interest is possible.