What are the warranty costs on a home loan?

When a mortgage loan applicant wishes to obtain financing from a bank, he will have to assume various costs, among which are the guarantee costs.

The costs in a mortgage loan

The costs in a mortgage loan

When a mortgage loan applicant files a financing request, the latter will have to face several costs. Obviously, these fees will be included in the total cost of the credit, but it is important to be aware of them and above all to be informed of the procedures for setting up fees. Some can be negotiated, others will be compulsory and imposed by a scale. We will first identify the application fees, this is an amount billed by the bank for processing the request, handling the documents and more generally for the time spent by the financial advisor. Brokerage fees may be added when the borrower requests a broker.

On the financing side, notary fees will be automatically included, there will be the fees of the notary as well as the costs of registration and drafting of the deed, the only official document making it possible to recognize ownership of the property for the purchaser. Other costs will also be involved in setting up the guarantee, whether in the form of a mortgage or in the form of a deposit.

Guarantee costs for the mortgage

Guarantee costs for the mortgage

Banks that offer mortgage financing will require a guarantee on the repayment of the debt, this guarantee can be put in place with a surety company, that is to say that a company offers to act as guarantor of the reimbursement of amounts due if the borrower does not honor its commitments. She will take care of repaying the bank immediately and then turn to the borrower to recover the amounts due. The establishment of the deposit will incur costs, which may also be partially recovered when the loan is fully repaid. It is important to request it to recover the sums.

If the surety is not possible (refusal of surety, or not offered by the bank), the borrower will then have to turn to the mortgage, it is a guarantee consisting in mortgaging the property by designating the bank as beneficiary, the latter can therefore order the sale of the property in the event of non-repayment of the debt, taking care to follow the procedure indicated. The setting up of a mortgage is done with a notary, there are costs related to the registration of the deed but also fees of the notary to be paid.

Negotiate the costs of your mortgage

Negotiate the costs of your mortgage

The guarantee costs are not negotiable, it is often a national scale, it is however possible to review the fees of the notary or even to negotiate the administrative costs. It is strongly advised to call on a broker who, thanks to his relationships, will be able to negotiate with credit institutions and various interlocutors such as the notary or the surety company. The idea is to reduce as much as possible the various costs that may be involved in the implementation of the mortgage.

How to avail the Swiss credit for Germans?

Did you know that a Swiss loan for Germans comes from Liechtenstein? No loans without Credit Bureau have been issued directly from Switzerland since 2009. The article provides you with direct providers of Credit Bureau-free Swiss loans and further information.

Swiss credit for Germans – direct credit

Swiss credit for Germans - direct credit

The success story of Credit Bureau is at the same time the story of many problems faced by people who cannot provide good information. At first it was quite easy to bypass the Credit Bureau. Today the Credit Bureau exam is practically ubiquitous. With very few exceptions, credit facilities from ordinary banking are strictly denied.

Even a simple mobile phone contract can no longer be concluded if the Credit Bureau contains a negative entry. As a solution to the credit problem, the exclusion of Credit Bureau can often be the only alternative.

Since there is no credit facility without Credit Bureau in the borders of Germany, the idea is obvious to simply ask a foreign bank. A Swiss loan for Germans is advertised quite often. Anyone who does not want to carry their money to a credit broker tries to find such a foreign loan on their own.

But not even Google provides reliable information about which credit bank still grants Swiss credit without Credit Bureau in Germany today. The reason for Google’s “failure” is that only credit brokers and some black sheep advertise Credit Bureaufree financing options.

Credit providers who independently and nationwide apply for a loan without Credit Bureau do not exist or no longer exist. Fine Lender Bank was one of the main players in Swiss loans without Credit Bureau until 2009. After about six years of litigation with BaFin (banking supervision), the “last direct provider” had to surrender.

The Federal Administrative Court finally prohibited Fidium from granting loans to borrowers based in Germany (Az. 8 C 2.09). Only since 2010 has it been possible to take out a serious Swiss loan for Germans as a bank loan. As far as is known, Lite Lender Bank from Liechtenstein is currently the only provider.

Credit conditions – Credit Bureau-free Swiss credit for Germans

Credit conditions - Schufa-free Swiss credit for Germans

After Fine Lender Bank was no longer allowed to lend to people, there was a gap in the market. No loan provider was allowed to legally grant Credit Bureau-free loans to borrowers residing on German territory. The Liechtensteiner Bank offers practically a copy of the successful business model, this time with all the necessary licenses.

Again, only 3,500 USD and 5,000 USD are possible as a loan without Credit Bureau. An effective annual interest rate of 11.62 percent is calculated for the smaller loan amount. For the 5,000 USD loan, it is 11.61 percent.

According to the tried and tested model, the loans are only granted to people who have been employed by their employer for at least 12 months. No guarantor or property collateral are accepted as credit protection. Only the income from dependent employment secures the credit.

Credit check for a Credit Bureau-free loan from Switzerland

Credit check for a Schufa-free loan from Switzerland

A Swiss loan for Germans, contrary to what advertising sometimes promises, is not a credit without a credit rating. Proof of creditworthiness can only be provided without the help of Credit Bureau. The public debtor register is requested. The debtor register is not a national database that can be easily accessed electronically.

It is run individually in each district court district. The request must be made in writing and justified. Anyone who is listed in the public debtor register, for example who has filed the EV, can save himself the credit attempt.

The second part of the credit check concerns the net income from employment. Depending on the loan amount and the living conditions, a minimum income must be proven. The following figures apply to a single applicant without maintenance obligations.

The minimum income for the qualification with a loan amount of 3,500 USD is 1,130 USD per month. For the loan variant with 5,000 USD, it is already 1,600 USD. Anyone who is married and / or has children has a higher income target.

What speaks for the direct application, what for the mediator?

What speaks for the direct application, what for the mediator?

Of course, it is cheaper to apply for a Swiss loan for Germans directly. You can save around three percent of the loan amount, i.e. a little more than 100 USD. In addition, the loan processing is usually a little faster in the direct way.

Nevertheless, a foreign loan does not always have to be the best loan option. Despite Credit Bureau, credit options from within Germany can be used. For example, the credit portals Capital Lender and Spin Lender or a bank loan from Cream Bank would be conceivable.

A reputable credit broker knows more of such opportunities and could thus offer a cheaper alternative to Swiss credit for Germans.