Most people, if they do not have their own financial resources, finance their housing needs in three ways.
- Mortgage loan
- Loan or intermediate loan from building savings
- A combination of a mortgage and a building savings loan / intermediate loan
When is it worth paying a building savings loan?
Usually up to about 200 000 USD is a suitable choice building savings loan . Your financial expert will advise you on the most suitable savings bank and help you with the loan itself. Sometimes they recommend using a combination of multiple contracts with different savings banks if this is more convenient for you.
From the above it follows that from 200 000 USD upwards it is preferable to choose a mortgage loan . Of course, the appropriate type of loan must always be assessed individually on the basis of a detailed analysis of the situation of each client separately.
There are two options of building savings loan.
Proper building savings loan
To take proper credit:
1) You must save a minimum percentage of the target amount , which is determined by the agreed tariff variant. It is usually about 40% .
2) You must have a building savings contract for at least 2 years .
3) You must also meet the so-called “ rating number ”. This parameter affects the timeliness and amount of deposits, the amount of the target amount and, last but not least, the total savings period.
Inter-loan or bridging loan from building savings
A bridging loan can apply for building society immediately after the conclusion of the construction savings. You do not have to save almost anything, just put a few hundred dollars into your account. Inter-loan is a relatively expensive type of loan. In some cases, however, it is the only solid solution for the client.
The amount of the monthly repayment of the intermediate loan is then divided into two parts , respectively two account numbers. You send interest on the inter- loan to the first account and to the second account you earn a minimum percentage of the target amount . This is how you repay until you meet all three of the above conditions for being eligible for a regular loan .