We can provide funding for up to 60 % of the value real estate that is owned. The amount of the loan will depend not only on the value of the real estate, but also on your personal financial situation and current liabilities.
The maximum loan period is 20 years. It is important to select an appropriate loan period, as by repaying the loan within a shorter period of time you may benefit from saving some interest, however, please note that a loan payment must correspond to your financial situation so that the remaining funds are sufficient for your own and your family’s necessary needs.
You may choose a fixed or a variable interest rate.
The fixed interest rate shall be fixed for a period of 5 years. Fixed interest rate is convenient if you wish to ‘insure’ yourself against interest rate fluctuations, and within a selected period of time know the precise amount of a monthly loan payment. A fixed interest rate shall be fixed upon granting the loan and will not be modified throughout the 5 years period. The agreement also concludes the terms and conditions that we will apply upon expiry of the fixed interest rate period. In case the loan period is longer than the selected fixed interest rate period, upon the expiry of the fixed interest rate period the loan will be subject to a variable interest rate or we may agree on a new fixed interest rate for another 5 years.
The variable interest rate consists of two parts – a variable part and a fixed part (margin). The margin shall be fixed for the entire period of the agreement, while the variable part of the interest rate shall depend on the market conditions, and may increase as well as decrease (recalculation is done every 6 months).
A loan may be repaid either in linear or annuity method.
Should you choose the linear repayment method, the monthly payments will vary in the amount – the loan repayments will be distributed throughout the period in such a manner - larger at the beginning of the loan period and then become smaller towards the end of the loan period. While repaying the loan in this manner the total amount of the interest paid will be smaller, because outstanding amount (from which interest is calculated) will be amortized faster.
Should you choose the annuity method, you will pay loan payments of an equal amount each month. At the beginning of the loan repayment period your monthly payments will be smaller than repaying the loan according to the linear method, thus there will be more funds left for other needs.
We will discuss your needs and propose at least a few insurance options on beneficial terms.