Browsing: Loan

That’s why you should invest in a holiday home – Loan for cottage

It has become incredibly popular to be a summer homeowner in 2019. Therefore, the demand for cottage loans has also increased exponentially.

Are you looking for a loan for your upcoming cottage? In this guide, we review what you should be aware of and why you should own a holiday home at all.

Why should I borrow for a cottage?

Why should I borrow for a cottage?

Several holiday homes provide increased growth for Denmark, and from the citizens’ point of view there are several good reasons to lend to a holiday home. First of all, it can add tremendously to your and / or family’s quality of life. There is nothing like searching away from a busy everyday life, and here you get the opportunity to make it close to your normal home – this is also the advantage of owning a holiday home in Denmark.

You can quickly get back and forth from your primary residence. It suddenly becomes somewhat cheaper to go on vacation. At the same time, you have a lot of good opportunities to rent out your holiday home when you do not use it yourself, and thereby cover a substantial part of your holiday home costs. There are many benefits when it comes to investing in a cottage.

It is also advantageous for pensioners, as this group of people can actually be allowed to live in the cottage full time after only owning it for one year. Holiday homes are much cheaper in many parts of the country than many year-round homes, so this can also serve as a cheaper housing for many.

What type of cottage loan should I apply for?

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In today’s Denmark, there are many opportunities for you who are interested in borrowing money for a holiday home or other types of housing. Overall , the best option in most cases is a mortgage when it comes to vacation homes. Especially after the Planning Act fell into place in 2017. The Planning Act has made it possible to borrow up to 75% of the value of the cottage in a mortgage institution. It also means that people with less savings have better opportunities to own a holiday home. It has been particularly noticeable for younger buyers, as these often have no or very little savings.

In addition, calculations from Good Finance Denmark show that there is up to between 300 and up to USD 600 to save per month if you borrow USD 1,000,000 for a holiday home through a mortgage loan. This means that there is a lot of money to be saved on this type of loan. But you also need to be qualified and that is a more onerous process.

The next opportunity for a cottage loan is through a bank. The interest rate is higher on a bank loan, but on the other hand there are lower foundation costs. Therefore, it can pay off on loans where the value of the cottage is less than 500,000 dollars.

A third option for a cottage loan is through a mortgage loan. It is an excellent loan option if the bank has denied you the loan for your holiday home. A mortgage loan is actually a good alternative when you need to borrow for a cottage. A major advantage of mortgage loan loans for the purchase of a cottage is that you as a buyer can get a loan of up to 95% of the purchase price of the cottage, which is why in many cases you can only settle for a payment of 5%. In the event that you have high home value in existing housing but do not have a large savings, it is possible to provide security in the home value and thereby get better loan terms.

The new rental rules help to lend to a holiday home

The new rental rules help to lend to a holiday home

The political easing of the rental rules has also made it more attractive to rent out his holiday home and thus become a holiday home owner. This is based on the fact that the tax and mortgage rules for holiday homes have changed dramatically.

The base deduction on rental income has increased to USD 40,900, which makes it possible to own the cottage without the huge costs. In 2017, this deduction was USD 21,400. So we are almost dealing with a doubling. It also means that holiday homes sales have increased by 28% here in the first half of 2019 when compared to the same period of 2018.

For many holiday home owners, rental has become a significant addition to the economy, and in general it also creates more growth for Denmark. It supports areas of weaker demand and it benefits tourism throughout the country.

Loan for cottage with Good Finance

Loan for cottage with Good Finance

We hope you have learned why it is a good idea to borrow money for a cottage and how to do it. Good Finance is a mortgage loan specialist, where with the offer of our network of investors, we have the opportunity to offer you the best loan outside the banks.

You can read much more about how that process works right here. Should you have any questions about a loan for a holiday home or something else, please contact us.

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Loan declined? Try Pawn Credit

You need a small urgent loan, but unfortunately you have difficulty accessing ordinary credit channels, perhaps because you are currently unemployed, or in the past you have not been very regular with the payment of the installments of a loan. Have you ever valued the pledge credit ? It could be an interesting solution.

In fact, to obtain it, it is not necessary to have a paycheck or present other guarantees, and no patrimonial investigation is carried out.

What is pawn credit and how does it work?

What is pawn credit and how does it work?

The pledge of credit is not new, but is a form of financing that is centuries old. Its operation is really simple: the money is granted by the bank in exchange for the custody for a limited time of an asset (which will be the guarantee in case you do not have to repay the loan ).

You can get it from various lenders and financial companies, but also from the most well-known pawn shop, in exchange for the delivery of an asset.

The duration of the pledged credit is fairly limited, generally ranging from three months to a maximum of one year.

As we said, the pledged credit is a good solution for the unemployed and also the so-called bad payers, who would hardly be able to access a loan in any other way. Unfortunately, one disadvantage of this type of financing is that the interest rates charged are generally quite high.

What happens when the pledge expires?

What happens when the pledge expires?

The pledge loan can be repaid at any time. Once the term of the credit on the pawn has expired, the owner of the property generally redeems it, that is, returns the sum received on loan (plus the agreed interest and any expenses ) by obtaining the return of the object given as a pledge;

Sometimes it may happen that the owner is unable or unwilling to return the loan amount. In these cases, the bank or the finance company will auction it once thirty days have elapsed from the expiry date of the policy.

What goods can be pledged and in what ways?

What goods can be pledged and in what ways?

Each credit institution has its own regulation, but in general the goods requested are luxury or in any case valuable objects, which are estimated by an expert.

Among the accepted objects there are generally: watches and precious jewels (in gold or platinum, pearls, etc.). Their value is also established taking into account the possible antiquity. If these are modern materials, they will be estimated on the basis of weight, on the contrary, more ancient artefacts also on the basis of historical value.

Art objects, precious coins, paintings, rugs or furs can also be used: in short, every object, also in common use, and goods of any kind that have a commercial value and that are easily salable.

If these are valuable pieces, an insurance is also taken out, which protects both parties in the event of theft during the period established before any redemption or sale.

The amount that you can get in exchange for the item pledged cannot exceed 4/5 of their estimated value in the case of valuables, while 2/3 for all other goods.

Thus, for example, for a gold watch whose estimated value is 5,000 dollars, a loan of no more than 4,000 dollars can be obtained.

Where to apply for a lien loan?

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Pledged credit can represent an adequate financial solution if you need immediate liquidity to face urgent expenses or emergencies, above all you have difficulty accessing traditional forms of loans.

According to the data of the Bank of Italy, to date there are about 30,000 requests per month forwarded in Italy for this type of credit, the average amount is around 700 dollars per object.

Fortunately, the owners do not remain separated from their assets for long! In fact, only 5% of the assets committed end up at the auction, since most of the pledges are redeemed at maturity or a renewal of the loan is required. As required by law, the duration of the contract can be, in fact, of three or six months, but also of one year in particular cases.

Although it is possible to inquire online about the various rates and conditions applied, the pledge credit cannot be subscribed online, nor can it be compared through Good Finance, but you must physically go to a branch of a credit institution that provides it, precisely because the asset will be valued and delivered in custody.

Remember to carry an identity document and a tax code. The only restriction is the coming of age.

Current legislation has regulated this type of loan, which can only be disbursed by 50 credit institutions recognized and adhering to the Italian Association of Pawn Credit Institutions.

If you are interested in this type of loan, you can start here, here is some information on the lenders that provide lien credit:

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Loans for Unemployed: How to Get It Fast?

People without a fixed and stable job hardly manage to obtain a loan from banks and financial institutions, since the latter are not willing to take the risk of not being paid back the money they lent.

However, some companies provide loans for unemployed, requesting alternative guarantees to the paycheck.

Loans for unemployed: how to get money?

Loans for unemployed: how to get money?

Banks, especially in this phase of economic and financial precariousness, hardly grant sums of money to customers who are unable to offer guarantees, such as a paycheck for example.

However, there are different guarantees that are still accepted by some banks, such as:

  • the presence of a guarantor, i.e. a person who takes responsibility for repaying the money requested in the event that the debtor is unable to do so;
  • mortgaging one’s home, with the risk that, if the money were not repaid, the bank could sell the debtor’s house;
  • guarantees derived from annuities, such as renting a property or maintenance check.

Which banks are providing loans for unemployed people?

The companies that provide financing also to the unemployed are different, however it is always preferable to evaluate the characteristics and options available on the market, in order to be able to identify the most valid offer.

In addition to the monthly payment, the TAG and the APR will also be indicated. Thanks to these data it will be possible to evaluate the best proposals.

The alternative to banks: promoted loans and social lending

The alternative to banks: promoted loans and social lending

To obtain loans for the unemployed, it is not necessary to turn to a bank, in fact there are alternative solutions, namely the loans and the social lending, or the loan between individuals.

The loan changed

It is a type of financing that can be requested from both a bank and a private individual. A certain sum is granted behind the release of a number of bills equal to the number of installments with which the repayment of the loaned capital is divided, which include an interest share and a capital share.

Interest can be freely negotiated, but on condition that it remains below the usury rate threshold. The debtor must pay the promissory note, within the due dates, and after which it requests an excerpt, and proceeds to the due date or until the principal is fully repaid.

In light of the formula used, if the loan were to be repaid in advance, the lender can demand payment of the sum of the bills that have not yet expired, or grant the facility to discount part of the interest that has not yet accrued.

Social lending or private loan

Loans between individuals work in this way: those who want to get a loan propose a project in an online marketplace. Only after the brokerage firm has established a rating on the basis of which the interest rate is set, are the private lenders deciding whether to support that project and for what percentage.

This is a formula that gives jobless people the chance to get capital. To access the loan between individuals, simply contact the online sites that operate with regular authorization from the Best Bank.

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Salary loan: who can request it?

Today we talk about the salary loan, making clear this kind of financing, in order to avoid that the same can be somehow confused with other types of loans.

The salary loan is a type of financing that works in a totally different way from the others. The withdrawal, in fact, takes place directly on the paycheck of the applicant, who must fall into a specific category of workers. Not everyone can access this particular loan.
Furthermore, it is important to stress that the amount of the installments is always equal to one fifth of the salary received by the same applicant.

Who can request the salary loan

Who can request the salary loan

There are several figures who can access this type of financing, which also allows bad payers to be able to get the sum of money requested.
Let’s see specifically who are the people who can take advantage of this type of loan.

Public and state employees

The first category of subjects that will be able to apply for this type of financing is public and state employees. In both cases, we are talking about people who have been hired and who are, as the name suggests, employees of that company, regardless of the role assumed within it.
The upper limit of the request for money is equal to the calculation that is made taking into account length of service and severance pay.
This means that the higher the TFR, the higher the amount of money that can be requested.
Generally the loan with salary loan, for these two figures, can last up to ten years.

Parapublic employees

Parapublic employees

These are those employees who work for an enterprise whose ownership is 50% of the state or local public bodies.
In this case the salary loan cannot be requested when the employee approaches the retirement age. At the same time it is important to underline how for large amounts that employee must have been hired by the company for at least 5 years.

Private employees

Private employees

This category can also request the loan with the salary loan and in this case, the maximum amount of money that can be requested is the result of the product between the amount of the TFR and the reliability value of the company.
So those who are recently hired in a business may not get the money they need to meet their needs.

Pensioners

Pensioners

As for pensioners, no special guarantees are needed. The funding must however end with the applicant’s 86th birthday, who must have held a role as a public, private or state employee during his career.

Affiliated doctors

Affiliated doctors

Finally, doctors in agreement with the National Health System can also apply for this funding.
In this case it is necessary to underline how the calculation made is identical to that of state employees and the financing must be completed at the age of 66.

This loan is convenient because it is easy to get and at the same point it is guaranteed for the banking institutions that grant it, given that the withdrawal takes place directly on the applicant’s paycheck.

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What is salary loan?

As many perhaps already know, today there are different forms of financing, more or less known, each of which lends itself to be used for certain purposes, rather than for others.

Among the various existing possibilities, the salary loan is certainly one of the most unique, if one takes into account, among other things, that this type of financing exists only in Italy!

In fact, it was born even with the unification of Italy in 1861 and is regulated by a decree dating back to 1950.

What is salary loan?

What is salary loan?

The salary loan is a loan, the payment of the installments of which is made by direct deduction in the pay packet, up to the maximum of the loan (20%) of the monthly net salary. For example, with a net salary of USD. 1,000.00, the maximum installment that can be used will be USD. 200.00 (that is, USD. 1,000.00 divided by 5).

This payment is then made directly by the employer, who undertakes to pay the installment amount directly to the financial institution.

What advantages does salary loan offer?

What advantages does salary loan offer?

Let’s see specifically the advantages that the salary loan has compared to other forms of financing:

COMFORT

Unlike most loans, it can be granted for a duration of up to 10 years! This means that, even with a relatively low installment, interesting amounts can be obtained, without placing the monthly commitment on the family budget too much.

SAFETY

The rate is fixed, moreover, for greater protection, both of the lending institution and the applicant, there are two compulsory insurance coverage, already included in the loan and valid for its entire duration: a life insurance that covers the death case, and one relating to employment risk, which takes place in the event of job loss.

SIMPLICITY

salary loan is granted on simple request, that is, without having to present any reason and without the need for any further guarantee if not your own individual signature, regardless of the amount financed.

SPEED 

Generally, disbursement takes place in a short time, with the possibility of earning advance payments without additional additional costs.

Who can apply for salary loan?

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Due to the payment characteristics it presents, it is clear that it is a loan reserved for those who have an employment relationship, that is only for employees.

In particular, all state, public and para-public employees, as well as employees of private companies – in this case only if they are joint stock companies – can by right access to the loan.

Considering the numerous advantages and facilitations it presents, the possibility of requesting it has also been extended to the category of pensioners. In this case, the installment is charged directly by the pension institution to the net monthly pension, always within the maximum limits of a loan.

In general, the age of the pensioner, up to the expiry of the operation, can even go up to 85 years!

It does not end here …!

If this should not be enough to make us consider this loan truly unique, we can also add that the advantages of salary loan are not only for those who request it but are also for the institution that provides the funding, because the withholding directed by the salary or pension, guarantees the regular payment of the installments at the due dates for the established duration, without running the risk of insolvency. In general, this allows for more favorable conditions to be applied to the employee or pensioner who request it, compared to other forms of financing, and for the same reason, the presence of other commitments already underway , or problems such as protests or delayed payments, however , do not prevent salary loan.

In short, it is clear that for an employee or a pensioner, the salary loan offers really excellent advantages, from all points of view. 

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Loan of money between individuals: is it advisable?

The loan of money between private individuals is certainly not new, but it has always existed. In times of economic hardship, to cope with unexpected expenses , some tend to turn to friends and relatives even before the bank or financial.

But is this form of loan legal ? Is it somehow protected by law? How to behave in these cases?

Is the loan of money between individuals legal?

Is the loan of money between individuals legal?

Yes, this form of loan is completely legal. Indeed, it can present an immediate solution to the urgent need for liquidity (especially if you cannot access other forms of loan if for example you do not have an income or you are protested).

If on the one hand the loan of money between private individuals is a commendable initiative, an expression of support and solidarity from family or friends , on the other hand it is also very easy to run into serious problems on both sides (such as the failure to repay , usury or tax checks ).

So it is better not to act in a “do it yourself” way, but it is advisable to formalize the financing , through a loan agreement between individuals, which has full legal validity.

In the contract, the creditor and the debtor clarify the sum disbursed , the interest rate (if provided), the times and methods of the repayment .

The money can be given in cash only for amounts less than 3000 dollars , while it is mandatory to use checks or wire transfers for higher amounts, for the traceability of payments.

Always act with caution: moving money from one bank account to another always generates suspicions at the Revenue Agency . It is therefore important to justify these operations as transparently as possible, for example with a correct reason for the transfer and with a private agreement attesting the existence of the loan between private individuals .

How does private money lending work?

How does private money lending work?

There are different forms of money loans between individuals. The most common are private writing loans and social lending on online platforms.

Loans with private writing

These are the classic loans between relatives or friends . They can be fruitful, and provide for the payment of interest, which are agreed by consensus (must not exceed the wear rate established by law), or non-interest bearing, if there are no interests.

Although a written contract is not required by law, as we have said it is strongly recommended . This can solve numerous problems that, instead, could arise in case of a simple handshake.

Social lending and online platforms

Appropriately regulated online platforms are also spreading which bring together lenders and applicants .

The service is provided directly online through accredited companies, and the platforms are subject to the supervision of the Bank .

Is the loan of money between individuals convenient?

Is the loan of money between individuals convenient?

This is certainly an instant loan form, which could be very useful for dealing with sudden expenses or economic problems .

The loan between individuals must be properly formalized, to avoid unpleasant inconveniences: if you receive the money you could incur usury , if you give it someone could take advantage of your good faith and not repay you.

It may be appropriate for those who need a loan but cannot access other forms of financing , such as personal loans or the salary-backed loan .

The main disadvantage of the loan of money between private individuals is the tax one: in fact, the taxation is higher than that foreseen for credit institutions.

Indeed, if for bank loans with a duration exceeding 18 months the applied taxes are added together in a “substitute tax” only 0.25% on the amount, in the case of private loans it is due a ‘registration tax of 3% on the amount and one of 0.50% on the mortgage or surety guarantee (in addition to the mortgage tax of 2% on the value of the mortgage, when applicable).

Furthermore, it is not possible to deduct the repayable interest from IRPEF.

So you have to make your own assessments based on your situation.

In some cases, a traditional loan may be the most advantageous solution. Have you already tried to apply for a loan from a bank or financial institution ?

The conditions of the lenders become increasingly flexible , with customized solutions, granting loans even to those who do not have a paycheck .

With our company, you can immediately know if the loan is feasible and the amount of the installment and interest. What are you waiting for to try it, it’s free!

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100% home loan: is it possible to get it?

At the beginning of the economic crisis, in all areas, such as in the sale of real estate, the 100% mortgage was no longer granted as easily as it did when, thanks to the real estate boom , it had been introduced. This was granted to those who wanted to buy a house despite not having savings available but relying exclusively on a stable job.

For some time now, with the new opening of credit by banks, the 100% mortgage formula has reappeared. An extremely precious opportunity for those who want to buy a house but at the same time do not have the immediate availability of adequate economic resources. The amount financed, in this case, corresponds to the entire value of the property.

100% mortgage: the guarantees required

100% mortgage: the guarantees required

Considering what has been written so far, it should be remembered that the current legislation governing land credit establishes that mortgages cannot exceed eighty percent of the value of the property. For the remaining part not granted directly with the loan, it is possible to meet only by drawing up a surety policy , to cover that portion exceeding the limit set by law.

In fact, the credit institutions that intend to proceed with the stipulation of a mortgage, undertaking to transfer sums of money to fully cover the value of the property, do not implement everything without taking due information and precautions. Indeed it can be said that they are very cautious in disbursing this type of financing.

Banking institutions take this extremely thoughtful attitude because 100% mortgages are considered particularly risky , to the point that any lender also adopts specific prudent conditions. These include the increase in the interest rate applied on the loan and, as anticipated, the stipulation of the surety policy which covers the excess part compared to the 80% normally paid.

Obtaining a 100% mortgage however is not as difficult now as it may seem. Banking institutions offer more or less convenient terms, to be carefully evaluated together with an expert credit advisor.

100% mortgage: who can apply for it

100% mortgage: who can apply for it

Most of the requests for 100% mortgages come from young people, under 35 or 40, who wish to engage in the purchase of their first home. But before I put some economic resources aside in my job.

The most convenient solutions offer the applicant, if he prefers to not be aggravated economically during the month, lighter installments, because they are distributed over a longer mortgage term , even in 40 years . These solutions are designed to guarantee greater sustainability of the installment and also give the possibility of flexible management at a spread which, in this way, manages to remain average .

Of course, since it is still an investment, the banks only disburse the mortgage after perfectly analyzing the economic situation of the applicant. So check if there are suitable additional guarantees. This means that the borrower must prove to the lender that you have at least one double household income and a permanent job.

The involvement of a third person who can act as guarantor is often required: a family member, in most cases, ready to commit to pay the debt in case of the contractor’s insolvency.

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How to Cancel an Approved Credit

All individuals trying to manage their lives with the salaries they receive. However, since our salaries are not sufficient for some of our needs, we can apply for loans and use loans to finance these needs. Credit applications to meet these needs are not necessary in some cases and we may need to cancel the approved loan.

How can I cancel loans?

Before mentioning the detailed information on the subject, we should note that the cancellation of the loan is not as difficult as it is thought. If the loan you have applied for is approved, it is, of course, possible to cancel the loan. Just because you have applied for a loan does not necessarily mean that you will use the loan. The bank may have approved the loan because you have fulfilled the terms of the loan application, and if it is not a digital loan, it can easily be canceled as it will be possible to say that the money has not yet been credited to your account.

However, one of the most important points in credit cancellations is the channel where the loan application is made. Since the cancellation process of credit applications made via SMS, Telephone, Internet and Branches will differ from each other, you should learn all the information about how to cancel the approved loan and follow the necessary steps to cancel the loan completely.

How to Cancel an Approved Credit

Nowadays, loan applications can be made quite easily through various channels. To give an example of this, we can make a loan application in minutes by using SMS or internet banking from the place we live at home and we can have the application result notified to our phone by sms. This situation causes differences between the cancellation of these loans. If someone with a high credit score has applied for a loan by SMS, he can get instant confirmation by SMS and start to fill in the necessary documents by visiting the branch to get the money into account.

Some credits are instantly approved and your money can be instantly in the account. For example, you may apply for a loan by making transactions through internet banking with a specific campaign. If your information and documents are up-to-date, the bank can deposit this amount immediately after you approve the loan. However, the fact that the money is deposited in your account does not mean that the loan will not be canceled. If the funds remain in your account after the credit has been approved, and you have not seen any transactions (withdrawals, deposits, transfers), you can initiate the 14-day cancellation process granted to you by the bank. You can initiate the cancellation process by contacting the customer service of the relevant bank and ensure the cancellation of the approved loan. Banks may charge fees for these transactions.

Does the approved loan be canceled instantly?

We have stated in your article that you have a 14-day cancellation right for all credits. Regardless of the application channel, you can cancel all your credits within 14 days by calling the customer service. However, the bank may request a petition for the applications you make from the branch. You can request a cancellation of the credit amount in your account by completing a petition with the bank employee. The petition process may take a little longer than the transactions made through customer service. However, one of the most important points you should pay attention to in this respect is that the money is not traded in the account. If the account has been exchanged or traded, the bank may not cancel your credit .

In the light of our information on how to cancel an approved loan , we can say that it is a very easy way to cancel the loan. In this way, even if your credits have been approved and deposited into your account, you can cancel them immediately and give up your rights.

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