Home loan insurance: You can't afford not to take out loan insurance if you want to get a home loan. This is a good thing, because it guarantees the repayment of your monthly instalments in the event of an unexpected event. There are different levels of cover available, from minimum to full cover. The minimum level of cover varies according to the project. Death insurance is compulsory. It guarantees repayment of the loan in the event of the death of one of the co-borrowers. It is always combined with one or more disability insurances. There are different types of contracts covering different degrees of disability (partial or total) and work incapacity (temporary or irreversible). The cost of the insurance varies greatly depending on the contract, Mosaïk-Invest can help you to minimise it.
Garantie : To further protect themselves against the risk of non-payment, banks require that the loan is also covered by a guarantee. It allows the repayment of the loan in case of non-payment outside the cases covered by the insurance. This guarantee costs about 1% of the loan amount. There are two types of guarantees: sureties and mortgages (or securities). The choice of security depends partly on the bank: some banks almost always prefer a deposit, others a guarantee. A deposit is usually less expensive than a real guarantee.
Choisir le bon prêt : There are different types of loans - most home loans granted in Europe are "amortizable".
Prêt amortissable : The amortising loan is the most common and is what we offer in most cases. Its duration varies from 5 to 30 years. The capital is amortised over time (hence the name), i.e. the borrowed capital is gradually repaid. In most cases, the monthly payments are constant throughout the duration of the loan. This gives you a clear idea of the burden the loan places on your budget.
Exemple :
A home loan of 200,000 euros repayable over 15 years at an interest rate of 1.80%, the monthly payments will be 1,269 euros. The capital repaid in the first month is 969 euros, the interest is 300 euros. The 60th monthly payment of EUR 1,269 comprises EUR 1,058 in capital repayments and EUR 210 in interest. As for the 180th (last) monthly payment, the capital repaid will be 1,267 euros and 2 euros of interest.
Bridge loan: Are you already a homeowner but want to change your home? With a bridging loan, you can buy your next home before you commit to selling your current home and use it as a down payment. This loan helps you for a limited period: between the purchase of the new property and the sale of the old one. It usually lasts no more than two years. At the end of the term, you have to pay it back. Withdrawal and smoothing loans: to allow you to reduce the total cost of a loan without increasing your monthly payments too much, a two-line loan, also known as a withdrawal loan, may be an option.
Good plan :
It is often a good idea to pay off outstanding loans using part of your savings to avoid setting up a smoothing arrangement that would increase the term, rate and total cost of the loan.
