Monthly Archive: July 2019

Mortgage transfer

Switching from mortgages sometimes offers major benefits: a lower mortgage interest rate, better conditions or the option to adjust your mortgage. But it is important that you calculate well whether switching is beneficial for you and that you arrange everything properly. That is why you will find a checklist for transferring your mortgage in this article.

Mortgage transfer – Mortgage interest

Mortgage transfer - Mortgage interest

First of all, you investigate what the current mortgage interest rate is. Is the mortgage interest rate low now, but do you still pay a high interest rate? Then switching often provides benefits. But which bank has the greatest benefit? Here you can compare the mortgage rates of all banks. With this you calculate how much you will pay in the coming years in interest when you switch. You then place this next to the amount that you pay if you do not switch. How much do you save?

Switching from mortgage – Conditions

In addition to the mortgage interest, the conditions also play an important role. What does a bank do if you are temporarily unable to pay? How much can you possibly pay off without penalty? You may come across a few conditions with your own mortgage that you have difficulty with. So make sure you only switch to a mortgage with good conditions.

Mortgage transfer at another bank – Fine

Mortgage transfer at another bank - Fine

If you retake your mortgage, you are in fact redeeming your mortgage debt early. The bank misses out on income from the interest that it did expect. That is why some banks charge a fine if you switch to another bank. An exemption does apply, for example for 10 or 20 percent of the outstanding mortgage debt. The amount of the fine depends on your situation, so always ask the bank where you can count on.

Switching from mortgage – Other costs

Switching from mortgage - Other costs

In addition to the penalty interest that you sometimes pay, the mandatory mortgage advice costs money and you pay closing costs for the new mortgage. These differ per bank, so include them in the comparison. You must also register the mortgage deed again in the registers of the Land Registry. For this you pay around 400 to 1,000 euros. Each notary uses different rates, so ask a different notary for a quote.

Transfer mortgage to another bank – Choose the right time

For the cost it is important that you choose the right time to transfer your mortgage. Of course you prefer to pay the lowest possible mortgage interest . With a low interest rate, switching is therefore more attractive than when the interest is high. In addition, in some situations you never pay a penalty interest for converting your mortgage, namely:

  • if you pay variable interest;
  • when you move;
  • when the fixed-interest period expires;
  • if the current mortgage interest rate at your mortgage provider is higher than the interest you pay.

Switch from mortgage – Choose the right advisor

Finally, you make a choice for a good mortgage adviser. You can choose an independent adviser or an adviser from a certain bank. An independent adviser costs more, but this independent advice often results in greater savings than if you opt for a bank adviser. The independent advisor looks at all the mortgages for you, so you can then take out the mortgage that is really the most beneficial and attractive for you. Finally, the adviser helps you switch mortgage.

How to save on your mortgage

It is very important to save especially during these difficult times. So the best advice anyone can give you is to sign up for the right mortgage that is appropriate for your budget. http://depodirectory.com/how-to-finance-a-used-car-in-canada/ has more information

Mortgages are calculated based on the type of interest you have chosen. This is based on the interest rate and the duration of the mortgage. The shorter the payment period, the higher the bill each month, however, the higher the monthly bill, the shorter the payment period.

It’s all about how much you can afford. Create a budget and consider how much you can actually pay in a month. Think long term. Will you still benefit from this particular amount in two, three years? Do you have enough savings in case an unforeseen accident occurs? How long can you continue to pay the mortgage?

Buy or rent?

Buy or rent?

This is how some lenders calculate how much they can lend you. The payment of your home is your total mortgage payment put in place based on your monthly income and the total debt ratio – which estimates that you can pay as a whole.

That is why there is also the question of “Should I buy or rent?” If the person is not yet financially stable, it is better that she rent in the meantime. However, the calculations show that leasing expenses are somewhat similar to the signing of a residential mortgage.

In addition, there is a great sense of pride in owning your own home. But with that comes the responsibility of paying your bills on time. In addition, now that you own, you must also set aside a significant portion of your salary for taxes. Owning a home also means paying municipal taxes for such utilities in addition to heating, electricity and repairs.

To help you decide, consider whether choosing a home is right for you right now. Determine if you have enough income to buy your own home. If not, then it is better that you rent.

Know the rates

cashNow here’s where mortgage rates come in. Start by checking the interest rate and rate movements of a specific mortgage loan for the type you will be subscribing to. Mortgage rates depend on many factors. Keep an eye on the stock market and mortgage market trends to know the secrets on the direction of your mortgage.

You must also study the APR or annual percentage rate. By law, mortgage companies are required to disclose the APR to their clients. That’s how they should announce this rate. This is mandatory so that people who are registered with them will be aware of where their rate is going. It represents the actual cost of the loan to the borrower and can be seen in depth when the annual rate is presented. This prevents lenders from hiding fees and for customers to have a transparent relationship with their mortgage broker.

Whenever possible, try to meet the lender personally. When money is involved, the personal arrangements are better because not only can you better clarify, you can also get a better idea of ​​who the person on the line is or who receives your emails.

Are you ready?

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Now that you’ve met your broker, know your APR, study the stock market, you’re ready to lock in your rate. This means that you are ready to engage with a lender and the lender is bound to a promise of this certain interest rate.

From there, you have to work on a budget. You must set aside a specific amount of your salary for your mortgage; and, if you can pay faster, why not? If you have extra money, talk to your lender and ask if you can pay a higher amount.

For a good credit history, always pay more, not less. Pay on time, not late. This is to make sure that you will not have trouble dealing with insurance issues in the future. With the right decision and the right budget, you will have no problem with the money. It’s just having the discipline to create a budget, stick to it and pay on time.
If organized as such, note that you could even save a few dollars.

Have you heard about overdraft?

Every day more and more people, without even realizing it, use the overdraft service. This service implies either a one-time fee or a short-term small loan. How does this happen? How can I get such a loan without knowing it? Everything is very simple. You write a check or make a purchase using a bank card, but you do not have enough funds in your account. The reason for this situation, usually one – the carelessness of the account holder, it is very rare when a technical error occurs on the side of the bank. Most often, you will be denied a transaction, but it also happens that a negative balance is formed on the account. So you have issued a service overdraft. It even happens that you have time to make several purchases until you know the whole truth.

When it comes to overdraft fees, not all banks are the same. Many banks leave debts on their current account, which undoubtedly minimizes your future expenses. It will be a little worse if the amount of the payment for it is added to the amount of debt and then you have to admit that they owe the bank more than they spent. And the worst option is to charge additional interest on your new loan. In rare cases, it is possible to refuse to pay for an overdraft, but having typed a few, you can not count on it.

Why do banks charge overdraft fees?

Why do banks charge overdraft fees?

There is a fairly reasonable answer to this question. Banks do not always want their customers to fall into overdraft, so they try to make it as expensive and not very convenient. At the same time, if the service is very expensive or too uncomfortable – you will think about changing the bank. Banks cannot refuse this service at all either, so they may lose some of their clients.
In this overdraft means that you used the money of the bank, that you owe him. Accordingly, the bank has some risks, because there is always a moment that you overspend your accounts and not return the money back, or return them with a long delay.

Does every bank have an overdraft service?

Does every bank have an overdraft service?

Not all banks provide this service. Some banks are more than reasonable approach to the issue of overdraft. They may offer you a loan for an overspending amount, but with a really small percentage. If you went to a minus on a credit card, then the percentage will be less than the principal.
There are banks that do not provide overdraft service at all. But this may not be the best option for the client, and in rare cases is not at all appropriate. So, some banks will not allow you to go into a minus on a credit card, but at the same time they will impose a penalty on you for an “extra” transaction. And besides shame at the checkout, you will also have another unpleasant collection.

There is also an opportunity to open a separate account from which money will be withdrawn in case you have reached an overdraft. But most often, banks charge a fee for such an opportunity. And the number of such transactions, as a rule, is limited.

Be attentive to your accounts and finances in general

Be attentive to your accounts and finances in general

If you keep track of your home money, keep track of your bank accounts and credit cards. Do not rely for sure on SMS notifications, there may always be technical failures. Check your balance and give a report to yourself, how much you spend, and how much money you have.