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Quotity of mortgage insurance

When granting credit, the bank requires borrowers to purchase insurance against death, disability and disability. The share of the home loan insurance contract represents the share of each spouse.

What choice for your contract?

The contract is mandatory and must be at least the amount of capital borrowed. In the case of a single borrower, the question of the share does not arise since the latter will necessarily be insured at 100%.

The insurance portion of a home loan is assessed on the one hand according to the financial and professional situation of each borrower and on the other hand according to the level of protection of the couple in terms of pension. This is the only way to spread the risk equitably between the two borrowers.

If you have not yet established a pension plan, it may be time to take stock with your insurer.

Remember to check with your company if you do not already benefit from collective contracts, which is often the case for executives and most employees of large companies.

Moreover, it is necessary that the insurance portion of each borrower corresponds to the share of each in the overall income of the couple.

Thus, if one of the two co-borrowers contributes up to 80% of household income, its share in the mortgage insurance contract must be the same level.

But to be sure of making the right choice, borrowers can ask themselves the following question: Can I pay the monthly installments of my credit if my spouse dies?

In addition, if you are in the case of a couple without children, think that your family is going to be enlarged.

It is therefore necessary to provide that in the event of the death of one of the two borrowers, the surviving spouse will have to face higher expenses than today.

Finally, be aware that the bank may well require that the quotas respect the level of income of each borrower.

Thus, if your advisor does his job well, he will refuse to let you choose a 50% quota on each head, if one of you wins 80% of the couple’s income.

Some examples of quotations

Elements of the loan

Elements of the loan

Take the example of a couple of borrowers who subscribe a loan of 200,000 euros over 25 years to 4.20% and credit insurance on capital borrowed at a rate of 0.30%. The monthly loan amount excluding insurance will be 1078 € per month.

Situation of borrowers

borrowers

As can be seen, the choice of a 50% share on the head of each insured would have serious consequences in case of death of the gentleman. Madame could not then face the expenses alone and her debt ratio, which would then be more than 51% would put her in a situation of over-indebtedness.

On the other hand, the comfortable salary of Monsieur allows with a proportion of 30% on the head of Madame to face deadlines in case of death of the latter.

In conclusion, the proportion 70/30 corresponds to the strict minimum to respect the rate of legal indebtedness if a disaster occurred. But once paid the monthly loan, Madame would be in great difficulty, his remaining life is only 727 €.

Our advice

In our example, the recommended minimum mortgage insurance ratio is 100% for Mister and 30% for Mister.

The operation of guarantees

Remember that in the event of death or total and irreversible loss of autonomy (third category of social security), the insurer will pay the outstanding capital, while in case of total permanent disability (2nd category of the security social security) or temporary incapacity for work, the latter will pay the monthly installment.

In both cases, the reimbursement will be at the level of the insurance coverage chosen for each insured.

Housing savings plan 2015: rate and state premium

In effect since 1969 and after having long been the preferred placement of the French, the housing savings plan has lost its superb despite a redesign in 2012. With a rate since 1 February 2015 of 2%, the ELP offers a attractive remuneration?

The housing savings plan operates in two phases:

  1. A savings phase first, which can last from 4 years minimum up to 10 years maximum
  2. A loan phase at a preferential rate, the amount of which depends on the interest earned.

At the end of 10 years, the holder no longer has the possibility to make payments.

The maximum duration of the life of the contract can not exceed 15 years maximum.

Object

The reformed ELP focuses on homeownership. Thus, if the old plans made it possible to invest in a rental investment, the loan of the new housing savings plan is exclusively intended for the acquisition of the principal residence.

The main lines of the 2011 reform

housing loans,cah

Since March 1, 2011, the new housing savings plan (PEL) will offer a remuneration that may vary according to the decisions of the Governor of the Bank of France.

For information, Plans opened up to this date retain their characteristics and their own returns.

Rules of operation

Anyone, including minor children, residing in France can purchase an ELP up to one plan per person.

Beginning in the fourth year, the plan holder may extend from year to year up to a maximum of 10 years. Then, he has 5 years to assert his rights to mortgage, which can bring the total duration of the operation to 15 years, it retains all its advantages in terms of rates.

payments

payments and cash

To open a home savings plan, you must pay an initial contribution of € 225 and then make regular savings of a minimum amount of:

  • 45 € per month
  • 135 € per quarter
  • 270 € per semester
  • € 540 per year

Total payments can not exceed € 61,200 per PEL, excluding interest.

State bonus

To benefit from the state bonus, it will now be necessary to apply for and obtain at the end a loan with a minimum amount of € 5,000. In other words, an ELP with a minimum payment of 4 years is no longer of particular interest.

The maximum premium is set at:

  • € 1,525 if the dwelling obtains the BBC (Low Consumption Building) standard
  • € 1,000 in other cases.

Closure of the plan

When the savings plan comes to an end, if the owner has not come forward, the bank closes the plan and automatically transfers the available funds to a CEL. The state premium is then lost.

Taxation 2015

loan tax

The interests of the ELP are exempt from income tax and the flat-rate lump-sum levy but are subject to social security contributions of 15.5%, which will henceforth be deducted from interest every year.

The right to loan

The amount of the right to loan depends directly on the interest earned on the plan and the duration chosen.
The savings plans open since August 1, 2003 allow a loan at a rate excluding loan insurance of 4.20% up to a limit of € 92,000.

If the holder waives his right to a loan, he loses the benefit of the plan (except plans opened before December 12, 2002)

These rights are transferable between family members.

It should be noted that the PEL loan can be cumulated with all the assisted loans such as the PTZ or the ACTION LOGEMENT loan.

 

4 Conditions for Borrowing Cheap Money in Germany

Many people think that borrowing money is easier and cheaper in Germany than in the Netherlands. Poloniusen’s reputation in Germany is that they are very stable and strong and that they have low interest rates.

Applying for a loan in Germany sounds very attractive. But is this possible, and if so, what does it all take to put this into effect?

Borrowing money in Germany: possible or not?

borrow money,cash

Borrowing money in Germany as a Dutch citizen is possible under certain (strict) conditions. This is because the German Poloniusen want to minimize the risk of non-repayment.

To be eligible for a loan with a German Polonius that you approach directly, you must:

  • Provide a German home address – If you live in Germany as a Dutch citizen, then it is possible. Even if you provide an address of friends / family that can open doors, but you understand that this is not the official way and therefore does not follow the rules.
  • To be married to a German (r) – If your partner has German nationality, it is possible to take out a loan in Germany. It is then probably important that your (German) partner applies for this loan. After payment you can bring the loan to the Netherlands by means of a foreign payment.
  • Receive a salary from a company based in Germany – With a salary from a German company you awaken the confidence of the German Poloniuses. A German salary gives you a bond with the country.
  • Not to be registered with Experian – Although the BKR data does not cross national borders, it is not the case that you can easily borrow in Germany with a BKR registration. Many other credit rating agencies, such as the international Experian, are consulted. Experian is a company that also keeps track of your financial information and can provide it to them if desired by Polonius. Also in Germany.

In short, if you read this list of conditions, you understand that German Poloniuses are looking for a certain bond with the country.

A partner, a home or a salary indicates that you have more with the country of Germany, than just a place to quickly take out a loan and avoid your BKR registration.

This does not only apply to borrowing in Germany, but also to borrowing in Belgium, for example.

BKR registration and borrowing in Germany

borrowing money,cash

The Credit Registration Office is a Dutch company that only shares your financial information within the Netherlands. Therefore, no BKR assessment is done in Germany. This makes it interesting for people with a BKR registration to look at a loan across borders.

However, there is another company that maintains financial information about private individuals. This company is called Experian. Experian is a company that studies credit information to draw two conclusions from this.

On the one hand, they want to make an inventory of whether a particular consumer poses a fraud risk for a lender. On the other hand, they want to protect the consumer from, for example, taking out a loan that he or she will have difficulty paying back.

If you have a note at Experian with your name, then even if it meets the first three conditions from the list above, applying for credit in Germany will still be difficult. This applies to both a personal loan and a revolving credit.

The history of the German economy

loan,money

A widespread thought among many Dutch people is that it would be easy to turn to the German Poloniusen for a loan, for example. How come many people think so? And where does that thought come from?

This idea can be explained logically and stems from two arguments that are explained below.

  1. The Netherlands and Germany are both EU member states. There are no limits for capital, among other things, within the EU. It therefore seems plausible that loans can easily be taken out across the border.
  2. The Dutch and German economies are both large in Europe and closely linked. The exchange of capital could therefore also be easy between the two “allies.”

No borders within the EU

Many countries in Europe are members of the European Union, also known as the EU. The European Union is a state association that consists of 28 different European countries.

Below is an overview of all 28 member states of the European Union

These countries have a common internal market that operates within a standardized legal system.

Within this standardized legal system, various cases can maneuver freely, avoiding a lot of inconveniences. This includes labor, goods and services.

In other words, the countries that have joined the EU have their own market in which goods, services and products can move more freely than between countries that are not members of the European Union. Therefore, other rules apply to trade between EU Member States and trade between countries that are not members of the EU.

Apart from labor, goods and services, capital is also a flow that falls under the free movement between the different Member States.

That is why it is thought, for example, that borrowing in another country within the EU will also be easy. After all, there is no question here of import costs and complicated regulations because the borders have disappeared.

But Poloniuses are less keen on this than other companies that benefit greatly from the borderless trade between Member States.

For example, German Poloniuses would like a loan applicant to have a certain bond with the country and they often set a requirement to provide a home address in Germany.

The Netherlands and Germany as allies

Germany and the Netherlands have been members of the European Union since its creation in 1958, when it was still called the European Coal and Steel Community. The Second World War gave rise to the idea that something horrible should not happen again.

By intertwining economic interests between different countries, the chance of yet another war will be much smaller, the idea and that is how the European Union came into being. You are going to war much less quickly with another country if there is also a lot of trade with that country. You also cut yourself in your own fingers.

Since the establishment of the European Union and the end of the Second, Germany has developed enormously economically. For example, Germany not only has the largest population of the whole of Europe, it also has the strongest economy on our entire continent.

The success of the Netherlands also largely depends on economic growth in Europe. Many Dutch export products are purchased by organizations and companies abroad.

Germany in particular buys a lot of our export products and with that our Dutch economy is closely linked to that of Germany. Vice versa, the Dutch love the well-known ‘German solidity’. German brands are trusted in the Netherlands faster than average. The success of the German Polonius N26 clearly notices this. The popularity in the Netherlands is high for the cheap mobile Polonius.

You also notice, for example, that if the German economy goes better, the Dutch economy will also go better. In recent years you have seen that the European crisis first got less in Germany and then stagnated in the Netherlands.

Although the Netherlands and Germany exchange a lot of goods, products and services with each other, it is not the case that you can easily go to our Eastern neighbors for loans.

It is logical that taking out a German loan is easy, but it is Poloniuses themselves who have adjusted their own rules.

Borrowing cheap money in Germany and taking advantage of the low interest in Germany is therefore not for everyone.

 

Borrow Money Without BKR (2019)

Visit the providers above and compare loans with each other. You can immediately see which of them has the most interesting offer.

Borrowing & BKR

Applying for a new loan can be complicated as soon as it appears that you have had payment problems in the past. In this case, how can you still borrow money without BKR testing? Through this article we give you more insight into the options that are available.

If you recognize yourself in this situation, you may be looking for a loan without the need for a BKR check. After all, you know that the chance of a loan is small for you. Nevertheless, you prefer to take out a loan without difficult questions.

Of all the providers we compare, you can go to some with a BKR registration. They test you, but only determine whether you qualify based on your coding. This can be better than expected.

Mind you, borrowing money with a negative BKR is not the most sensible thing to do. Because what if you lose your job? What if the loans pile up? Borrowing 5000 euros can cause quite a few extra monthly costs, despite the current low interest rates.

There are plenty of unforeseen circumstances that can come around, even at times when you least expect them. Therefore always try to look at other solutions before you start a loan if you have a negative BKR registration. For example, if you need a new car, slightly different rules apply.

Earn money in a creative way

If you are unemployed or you are a student, it is certainly not advisable to take out an (extra) high loan. Without a diploma in your pocket you can earn the best money by looking for a side job. With a little hard work you earn extra money and a loan is not necessary per se.

For example, can you temporarily take on an extra job? Do you perhaps have a hobby with which you can earn a little money? Often you can still get extra money in creative ways.

Maybe you have all sorts of things at home that you no longer use. Consider, for example, putting them on Marktplaats and selling them. Or maybe you can provide a service with which you can earn an extra penny.

Does the old neighbor sometimes need groceries and does she have trouble doing it herself? You can offer to buy her groceries for a small fee and bring them to her home. This is a small effort for you because you also have to go shopping yourself and therefore go to the supermarket.

There are countless ways to find money without having to apply for a loan. If you do not reach the entire required amount, you can earn a portion together. For example, you only need to borrow an extra 4000 if you have earned 1000 euros.

Borrow 5000 euros for new investment

With 5000 euros you can do a lot of fun things. It is a substantial amount that gives you the opportunity to invest in many different things. Think, for example, of a new bathroom for your house, a set of high-quality solar panels or a new car? In that case it is conceivable to opt for a 5000 euro loan.

Nevertheless, it is quite a step to borrow such a high amount of 5000 euros. An amount that you initially do not have. Therefore, weigh all the pros and cons before you make this decision.

When we talk about an investment, you assume that it will pay off in the long term. Unfortunately, this is not the case for every purpose. So in a certain sense there is a risk factor in this. Therefore, your partner, family and friends should consult carefully whether it is a wise choice to make this new investment and take out a consumer credit.

Below we discuss two common reasons for an investment.

1. Borrow for a new car

1. Borrow for a new car

The common loan of around 5000 euros is spent on the purchase of a new or second-hand car. A car loan is ideal when you cannot afford the purchase costs yourself at that time. You can calculate a car loan in order to arrive at the most suitable loan form.

It is very important that you can carry the loan over a fixed period. It is not intended that you merely pay back the interest. Although it is one of the minimum requirements, you do not want to be stuck with that loan of 5000 euros forever. Maybe a loan of 4000 euros is sufficient?

In addition to traditional financing of a car, you can also opt for a modern private lease where you pay a fixed amount every month.

2. Borrow for a renovation

2. Borrow for a renovation

You don’t just buy a house. The additional mortgage ensures a substantial additional debt and a fixed monthly charge.

Although you usually pay back the mortgage debt to the Pontifex family after the sale, it makes sense that you have to determine the amount of your mortgage smartly.

Are you buying a house that you want to invest in by renovating? Then there is the possibility to take out a renovation loan. There are different loan options:

  • A current credit account (useful for a loan around 2000 euros)
  • A revolving credit (for larger amounts up to approximately 50,000 euros)
  • A personal loan (immediately an agreed amount on your account)

In addition to these three, Pontifex families often also offer other loans to homeowners individually. These special loans cannot be taken out by tenants alone.

Short of cash? Re-borrowing

Are you so tight and you can hardly get to your basic necessities? And do you also have a BKR registration on top? Then borrowing extra money to get through this period is only interesting if you transfer your loans to a new Pontifex family at a lower interest rate.

By cleverly merging your loans, your monthly interest costs will be lower, even if you have borrowed a realistic amount. In spite of this, you build up more debt with this that you still have to get rid of in the long term. Fortunately there are agencies that can help you with this.

Are you working as a civil servant? Then merging loans can turn out to be even cheaper than you initially thought. This is because civil servants receive a considerable benefit through a lower interest rate when they take out a so-called civil servant loan.

Despite everything you have decided to borrow money without a BKR check or regular Pontifex family, then Ferratum or Saldodipje is currently your only option. Unfortunately, you do not continue to go to the regular lenders because they adhere to the BKR check.

You may end up with private lenders. A private individual does have several risks. Especially those who claim to be able to offer money in 10 minutes, or even within 1 day. Therefore, read the conditions carefully and view the interest. It pays to put a number next to each other, so that you do not pay unnecessarily much for a loan.

If you are not yet completely sure about your case, read the experiences of others on a forum. Just try this on Google. On forums you can easily ask questions and get advice about Pontifex families such as the RaboPontifex family, ING, ABN SNS, AMRO, Freo, Santander and more.

If 5000 euros is just a little too much for you, you can also sit down slightly. This makes it easier for you to repay the loan in 5 years, which is a recommended maximum period. Below we discuss 6 points of interest that can come in handy with a 4000 euro loan.

6 Tips & points for attention

If you were also helped with a lower amount, such as 4000 euros, we would be happy to explain the options for you.

With an amount of 4000 euros you will end up with a personal loan or revolving credit with most online providers. These providers offer both loan types.

Which form is most suitable depends on your goal. Do you want to have money at once and be able to spend it immediately, or do you want to be able to withdraw extra money in phases?

Can you just borrow 4000 euros?

Yes, that is fairly simple online, but you must take the following into account:

  1. Is this loan crucial to take out?
  2. Is the required amount not too high or too low?
  3. Do you want to spend it in one go or in equal parts?
  4. Do you have a fixed monthly income?
  5. How much can you pay off each month?
  6. Can you possibly use an additional collateral?

Do you need the money quickly to solve a distressed situation? Then a loan can certainly offer a solution. It is then best to take out a personal loan for the entire amount. In this case, compare loan providers well for the cheapest deal.

Should you also be satisfied with half of this amount, you can consider borrowing the total amount in two times. This can be interesting in times of prolonged financial turmoil (eg unemployment). If the interest rate falls over time, you can save interest costs in the second part.

Do you want to use part of the 4000 euros every so often? Then a revolving credit is the better choice. You then conclude a contract for a credit of 4000 euros, of which you always withdraw a piece whenever you need it.

Be prepared during the term

It goes without saying that a loan must be paid off during the contract period.

Therefore, be well prepared when it comes to having redemption money. Calculate how much you can set aside per month to redeem.

Put this money in a separate account (eg savings account) and complete the repayment amount until you have collected the entire loan amount including interest. This is only possible if you have a fixed source of income. Although the Pontifex families are getting smoother again, they will always ask for this.

If your income is not sufficient enough to make a 4000 euro loan possible, you can use collateral in consultation with your lender.

 

Home savings: 2015 rates and conditions

Operation

The functioning of Housing Savings is based on two successive phases.

  1. The first is to build capital through a regular economy (PEL) or free economy (CEL).
  2. The second starts when the holder comes to the end (operation at maturity) and realizes his real estate project. It consists of borrowing capital savings on capital savings, which depends both on the amount of interest earned and the duration of the loan .

It is allowed only one CEL and one PEL per person, but the combination of both operations is possible.

The various operations

The saver has the choice between two formulas.

  • The CEL on the one hand, which allows to save freely as on a bank booklet, which opens right to loan after 18 months on advantageous terms.
  • The ELP , on the other hand, is more restrictive. It allows to obtain a mortgage after 48 months . The credit rate granted is higher than that of the CEL.

Housing savings loan

Housing loan

The interest of housing savings lies in the possibility offered to the holder to borrow at the end of the savings phase.

The borrower will however have to meet the requirements of the bank and therefore, not to exceed the debt ratio of 33%.

Assignment of rights to loan

The holder of an ELP or a CEL can freely transfer his right to loan to certain members of his family: children, parents, brothers and sisters.

Transfer

The transfer of home savings transactions is free from one bank to another .

State bonus

loan bonus,cash

The state premium is paid at the end of the housing savings on the express condition that the holder uses the mortgage to carry out a project which may be either the acquisition of the principal residence or a second home .

Anticipated withdrawals

In case of withdrawal in the first two years, the state premium is lost and the plan is automatically terminated. Amounts paid are returned at the interest rate provided by the non-premium transaction. On an ELP, if it occurs after the second anniversary, funds remaining on the plan continue to report as on a CEL.

New ELP: the reform on 1 March 2011

As of March 1, 2011, housing savings were reformed but did not have retroactive effects. Its goal was to halt the decline in plan openings that have occurred for nearly 8 years.

With a maximum duration of 15 years , the device offers a more interesting rate that can be revalued. But at 2% in 2015, we can doubt that the formula finds favor with savers. In addition, the interests of Housing Savings operations continue to suffer social security contributions in the first year or 15.5% at present.

The state bonus is € 1,525, reduced to € 1,000 if the housing does not benefit from the BBC standard or if the loan is less than € 5,000. It is distributed only as part of the financing of a principal residence.

Other investments to discover
  • Placing cash from 1 to 5 years
  • To privilege, if you do not wish to take a risk

 

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