Real estate loans: Another change in the housing credit directive.

If politicians introduce guidelines and laws whose primary aim is to protect consumers, this does not necessarily mean that this effect will also be achieved in practice. It is not uncommon for political projects of this kind to miss their target entirely. One of the best examples of the delusion of regulation among political circles is the so-called housing loan directive for real estate loans.

To protect consumers from over-indebtedness

To protect consumers from over-indebtedness

Created and launched to protect consumers from over-indebtedness in the basic ideas of the regulation or directive. There would be nothing to be said against this if, as already mentioned, it was the same. Practice shows, however, that the desired consumer protection with a real estate loan goes so far that certain age groups now almost no longer receive a housing loan at all. The older generation in particular is disproportionately affected. The reason lies in the construction of the housing loan directive. A point that should now be changed again.

It is a fact that, with the introduction of the directive, the banks above all expressed their displeasure. Because banks feared the loss of numerous, sometimes highly solvent customers in the area of ​​real estate loans. Because the housing loan guideline is not based on the value of the property when evaluating a customer for a real estate loan, but on the age of the borrower. In plain language, this means that the older a potential customer is for such a real estate loan, the less likely it is that the loan will be granted.

A basis that is now taking revenge, because even highly solvent older citizens simply no longer get any loans. A fact that understandably neither the banks nor the people concerned like it. The criticism is getting louder, which means that the federal government now wants to make further changes to the directive. 

Consequence of the guideline: fewer and fewer real estate loans

Consequence of the guideline: fewer and fewer real estate loans

Corresponding figures on the subject of real estate loans demonstrate the need for corresponding changes to the housing credit directive. Because, according to the transaction platform Europace, which specializes in real estate financing, the number of loan agreements with older people fell significantly. In the age group 40 to 50 years, compared to the 11 months before the directive came into force, by 5.88%.

If you look at the number of the so-called “best agers”, ie the age group of over 60-year-olds, there is an even more drastic decline. The platform even recorded a decline of 12.69%. The rate of real estate loans rose by 6.53% for those aged 18 to 30 and around 2.66% for those aged 30 to 40. However, the figures also reveal that the number of real estate loans has declined across all age groups with the introduction of the directive.

Efforts to relax the property loan directive

The insight from these figures is that, in particular, the credit supply of older people seems to be endangered in spite of the corresponding credit rating and solvency. A circumstance that should now be counteracted. A relaxation of the directive is being considered. There is also an obvious need for clarification on follow-up financing and debt restructuring.

It also sounds from the most diverse corners of politics that borrowers should be excluded from the tightened rules of creditworthiness. Another part of the political discussion around the credit directive is the topic of the “employment biography”. For example, the credit check for real estate financing should take into account the accumulated wealth of older people and the expected income of younger people. All in all: the housing loan guideline seems to remain an “immature” project.

Instant Loans for the Self – Employed.

Not every bank offers instant loans for the self-employed; for some, the risk of a possible payment default seems too high. If you have been in business for several years as a self-employed person and can demonstrate a sufficiently high income, you should still have no difficulty in obtaining a loan.

Apply for instant loans for the self-employed correctly

Apply for instant loans for the self-employed correctly

Since you, as a self-employed person, do not have a regular income, but your earnings are usually subject to monthly fluctuations, most banks require you to present income tax assessments for the past two to three years. They serve as proof that your average earnings are sufficient to repay your loan.

Some financial institutions that offer instant credit for the self-employed also require that you present your excess income statements or balance sheets for the past few months. If you have collateral such as life insurance or real estate, you should definitely state this if you want to apply for instant loans for the self-employed. This can lead to a significantly better assessment of your creditworthiness.

Calculate loans correctly as a self-employed person

Calculate loans correctly as a self-employed person

When calculating the maximum monthly loan rate, you should orientate yourself to the weaker months so as not to run into financial difficulties. Also keep in mind that you should save a little bit of money each month for unforeseen expenses or times of bad orders. If you are interested in instant loans for the self-employed, you should make sure to keep a certain financial buffer after the installment has been repaid.

In addition, find out whether a special repayment or a one-time suspension of the rate is possible at the chosen bank. This enables you to respond better to changing situations in your working life. Especially when several banks offer you instant loans for the self-employed with similar interest rates, flexibility can be an important decision criterion when choosing the right provider. So be sure to find out about the conditions before signing a loan agreement.