Mortgage loan: will rates still be as low in this year?

People who have obtained a mortgage in recent years have been entitled to rather beneficial conditions. However, it seems that the period when home loans were advantageous is unfortunately over. Those who were able to take out a mortgage in 2019 were well served. The rate was particularly attractive. This had reached 1% for a fixed rate loan with a duration of 20 years. In 2020, what will happen to the criteria for obtaining this type of loan? Are the clauses more or less flexible? Find some answers in the following lines. 

 

Interest rates remain low

mortgage loan

The low level of interest rates is largely due to the policy conducted by the  Best Bank . Last September, it lowered the deposit rate from -0.4 to -0.5%. The deposit rate is equivalent to the interest rate that banks receive when they place money at the Best Bank . This means that banks must pay a sum if they want to deposit their money there.

In the same context, the former President of the Best Bank , Mark Bragat, launched the buyout program again in November. Its principle: the Best Bank buys bonds every month to keep the interest rate low over the long term. If at first glance this rate seems attractive to people wishing to acquire real estate in 2020, this is actually far from a good thing. There are many reasons for this.

 

Home loans would be more expensive

Home loans

First, it is quite possible that in 2019, the interest rate on mortgage loans reached a historic low. For banks, these low interest rates monopolize their profit margins. This is when several banks are unable to reduce the savings rate on savings accounts, in order to preserve their profit margins. Indeed, banking establishments must keep savings interest at a minimum of 0.11%.

This means that if the banks lower the interest rates on the mortgage loan, they will find themselves in a less advantageous situation. Nevertheless, it is likely that in 2020 mortgage interest rates will increase. Since the deposit rate is negative, it is in the banks’ interest to introduce capital into the economy through loans, rather than depositing it in a savings account with a negative interest rate.

 

Stricter conditions for obtaining a mortgage loan

mortgage loan

Starting the following year, borrowers will find it harder to take out a mortgage. This, because for Cream Bank, affordable mortgage loans. Banks should take more account of the monthly repayment burden and household debt.

Cream Bank hopes that the banks will grant loans with a co-payment of 90% or even less. For first-time buyers, a ceiling of 35% of the sum of the credits may be transferred for the allocation of credits with a higher share.

In other words, obtaining a loan will be more complicated if you cannot afford to pay at least 10% of the purchase yourself. These 10% are added to the charges relating to the mortgage, to cite only the notary fees as well as the registration fees.

In short, with increasingly stringent conditions and stagnant interest rates, it will be more difficult to take out a home loan in 2020, compared to previous years. For certain regions such as Flanders and Brussels-Capital, this situation can be worse, with the cancellation of the housing bonus. All in all, obtaining a mortgage loan will now be an obstacle course. Only Wallonia favors the granting of a mortgage loan thanks to a housing check.

Instant credit on the account in 24 hours.

Today, more and more borrowers are placing greater emphasis on a loan product that is quickly available and can score with a simple application. Due to the fact that more and more borrowers want a loan that is quickly available, online banks in particular have been able to record a significant increase in demand.

The online banks on the Internet today offer quick and easy borrowing with their instant loan offers. In contrast to many conventional credit products, instant loans on the Internet can convince with a low interest rate, any use and flexible contract design. Private borrowers who are looking for an instant loan today should not do without a comparison on the Internet due to the enormous increase in offers, numerous financial portals now allow a quick and free comparison of several loan offers.

Not impossible, but still make comparisons

Instant credit on the account in 24 hours - not impossible, but still make comparisons

Before comparing multiple offers, borrowers should get an overview of which criteria are important when comparing loans.
For many borrowers, the effective interest rate is the most important comparison criterion, since it has a decisive influence on the total loan costs. The effective interest rate is variable compared to the borrowing rate and can vary depending on the loan amount and term and credit rating.

The borrower can have a decisive influence on the effective interest rate via the credit rating. If you take out a loan with a high income, you can look forward to a low effective interest rate. Even borrowers who can present a positive Schufa can call up attractive conditions. Low earners cannot score with a high income, but they also have the chance to positively influence the effective interest rate. By choosing a short term and a low loan amount, a low effective interest rate can also be generated.

Anyone who wants to have an instant credit in their account in 24 hours has no bad chances today.

All instant loan offers are characterized by the ability to apply for a loan quickly and easily over the Internet. An instant loan offer can today be applied for in most banks in 2-3 steps. The application process is always initiated with a loan application via an application form. The loan application can be completed online at the bank. In addition to details of the desired credit, the application itself also includes details of the person and income.

After the credit application has been completed and sent, the bank’s creditworthiness check is carried out; if it is positive, the loan approval is already granted. The credit agreement is subsequently made available to the consumer for download, so that the consumer only has to download, fill in and sign the credit agreement. The contract is then sent to the bank, and upon receipt of the loan application, the instant loan is booked to the applicant’s account in 24 hours.

Finding an instant loan on the account in 24 hours is therefore not impossible, but a comparison in advance is essential, loan calculators are useful for comparing several offers.

Yes, there is an available credit for single mothers.

Young women, in particular, may not have been in the job for too long, have only recently completed their training, or may even not have finished at all when there are plans to announce or not plan to have children. Unfortunately, it is the case today that the partnerships from which children are born are no longer built on such solid ground as they were a few years and decades ago. Nowadays, it is not uncommon for young women to have to live with one or even more children without the child’s father as a steady partner.

Single parent = unworthy of credit

Single parent = unworthy of credit

Housing, utilities, food and clothing, insurance, membership in clubs, and many other expenses may far exceed the amount available to a single mother a month, no matter how it is made up. If unforeseen expenses are added because, for example, an important household appliance fails, the young mother often does not have sufficient reserves to make such purchases at short notice. In such a case, there would be a loan for single mothers, which can be allocated in a timely manner and brings quick financial help.

Unfortunately, however, it is the case that the young mother has no income from work, quite the opposite, often she is related to Social Welfare. So a loan would initially be hardly conceivable, since providers of loans like to demand pay slips and other security, before a loan is granted. So does this mean that a young mother who is unfortunately a single parent automatically has no way of getting a loan?

Loans that are possible individually and even in difficult cases

Loans that are possible individually and even in difficult cases

Almost every problem in the area of ​​banking, loans and credits can be solved and so there are also loans that are specifically tailored to this group as a loan for single mothers. Since it is foreseeable that no high sums are required in this area, no house should be paid for it and the money is also not intended to finance a trip around the world, there are definitely ways that relieve a single mother of the acute financing problem. A small loan, low repayment rates, little additional costs there is often a corresponding offer at the house bank that can be discussed in person with the bank advisor.

However, it is of course also possible to apply for a loan for single mothers via the Internet and to choose a completely different lender for it. If the single mother is in the happy position of having “clean” Credit Bureau information, this is almost a guarantee that a loan will be granted to single mothers.

But even in cases where the Credit Bureau information is poor, there may still be the option of obtaining a small loan through a foreign bank. In this case, however, other collateral should be able to be provided without gaps and, if necessary, slightly higher processing fees or other additional costs can be expected.