Can I split a loan into multiple loans?

Splitting a loan can be done in different ways and quite common. We usually try to combine loans so we have to bear lower charges every month. Sometimes, however, it is necessary to split a loan, for example after a divorce.

But other situations can also occur where splitting a loan may be the desired solution.

Is mortgage loan split possible?

The refinancing of a loan – with or without another lender – offers opportunities for optimization. For example, it is possible to split the loan into different maturities. A part can then, for example, be repaid at 20 years, and the remaining part at 15 years.

By splitting up in the above way, after a certain period (15 years in our example) to part of the load will disappear, but you can still enjoy the living bonus.

 

Save notary costs by splitting loan?

Anyone who lends money to buy a house will attach great importance to the tax deduction that can be enjoyed. In the first instance, it becomes important to borrow sufficiently so that no deductions are lost.

Establishing a mortgage will always require the intervention of a notary. A possibility to save costs – if the fiscal basket is full – can be partly financed by the loan of a mortgage mandate instead of a mortgage. That way you can save enrollment costs.

Keep in mind that the lender may try to charge a higher rate for the loan with a mortgage mandate. In that case, you will have to negotiate to try to level the interest rates. Many banks are willing to do this. Also with file costs, you will have to take this into account in order to calculate the total benefit.

Attention: a loan that merely serves to purchase land is not eligible for the home bonus. You can possibly finance a stand-alone loan for the purchase of a building plot by means of a loan with a mortgage mandate, in order to subsequently take out a new loan with mortgage registration for the construction works.

 

Split loan as a risk reduction?

The motivation to split up the loan was in the past often spreading the risk. For one loan, the variable interest rate could then be opted for, while the other loan would retain a fixed interest rate. By combining various interest rates and maturities, the company tried to achieve benefits and, above all, to spread risks.

In times of low interest this is not so much the case anymore, but spreading to loan over two loans with different maturities can still be useful depending on your plans for the future.

 

Split loan after divorce

After a divorce, there are many questions. One of those pressing questions is what happens to the house and what needs to be done with existing loans. In any event, agreements must be made about this and arrangements have to be made.

One of the decisions that can be taken is to sell the property, repay the loan and then distribute the surplus. Another possibility, however, is that one of the partners takes over the ownership share of the other partner.

The intention is that the partner is relieved as a borrower and that the acquiring partner takes on the remaining debt of the loan. However, permission from the bank is required for this.

After all, the bank wants to be able to state with certainty that the acquiring partner is solvent enough and can also effectively repay the debt. This means that the bank does not provide this stool. The consequence of this is that the defunct partner remains jointly liable and, in the absence of payment, can end up on the blacklist of the Central Credit Register (CKP).

In case of a divorce, let yourself be assisted by a mediator and divorce consultant to make everything run smoothly. This person can also assist you in practical and administrative matters. 

 

A split loan between business and private?

If a part of the building is to be used professionally by a sole proprietorship, it may be opportune to split up the loan and to finance the professional part via the sole proprietorship. The interest can then be deducted as a professional cost (at the marginal rate) which is quite interesting for tax purposes.

When you splitting up, you have to make sure the tax basket is completely filled. Your bank or lender can certainly help you determine the correct amount.

This is also interesting for companies. Anyone who works from a company often has a financial reserve within that company. In this case, the loan may also be split up if the company becomes co-owner of the property, part of which is used professionally. The company then finances as it were.

It goes without saying that this may have additional consequences and that proper consultation with the bank and the bookkeeper is necessary to anticipate this. Possible alternatives can, therefore, be discussed. For example, it may be more interesting to still buy the property completely privately and subsequently rent the professional part to the company.

 

In summary

Splitting a loan is possible and in some cases can bring benefits. Try to ensure that the division provides for a fiscal part (maximum home bonus deduction) and a remainder.

Splitting the amount into different loans can be useful to reduce the monthly burden over time. This can be useful if, for example, you have children who are going to study. For example, around this time the monthly burden falls away and you have more financial breathing space to financially support your children.

Always compare different banks if you are looking for a new loan, or want to refinance or split an existing loan. 

Payday loan consolidation -Discover more about how to consolidate payday loans

Today you get credit for everything (automobile, consumer, real estate purchase…) with a facility so disconcerting that it often leads to a debt situation. To accumulate several monthly payments inexorably leads to financial asphyxia. There is no point in waiting for the accounts to turn red earlier and earlier in the month, as incidents and related rejection fees accumulate, only adding to the amount of overdraft and overdraft. To get by, a solution exists, the purchase of credits.

Discover more information about how to consolidate your payday loans

A sluggish economic climate often putting borrowers in trouble to honor maturities of loans, historically low real estate rates, redemption rates generally quite attractive… All conditions are met to consider a buyback of credits.

The payday loan consolidation is an operation that consists of gathering all payday loans in a single credit, with the effect of reducing the number of monthly payments and thus reducing the household debt ratio- navigate to these guys. The people who use them can, therefore, rebalance their cash flow and regain a greater margin of purchasing power.

This type of financial arrangement attracts many borrowers who accumulate so many loans that it is impossible for them to meet their deadlines. By grouping all credits into one with repayments spread over time (up to 10 years for a personal loan) you get much reduced monthly payments. The repayment period is certainly longer but the reduced monthly payments offer a real “breath of fresh air” to borrowers strangled by a reduced purchasing power. Grouping credits also make it possible to integrate a small treasury to face the unexpected without any anxiety. Moreover, the rates for mortgage loans have never been so low, the opportunity may be interesting to buy a loan obtained a few years ago at a much higher rate.

Profile of credit repurchase holders in France

In the absence of sufficient statistical data, it is difficult to draw up a map of the redemption of loans in France, but there is a certain correlation with that of the debt published annually by the Bank in France. In November 2014, there was a predominance of household indebtedness in the Nord and Nord-Est regions, Pas de Calais, Picardy, Champagne-Ardenne, and Burgundy as well as in Haute-Normandie (there are more areas in these regions). 5 over-indebtedness files per 1000 inhabitants). The regions, which are the most spared, are Île-de-France, Brittany, Alsace, the Rhône-Alpes and Midi-Pyrénées regions as well as the Pays-de-Loire region, which generally shows an improvement of the financial situation with regard to the indebtedness of its inhabitants since 2011 (except for the department of Sarthe).

According to the Bank in France, the profiles of over-indebted people are changing. From families of 4 or more with an average age of 40, they now include single, widowed, single, separated or divorced people with emergence of seniors over 55 and owners. In the active population, employees seem to be the most affected by over-indebtedness (35.7%) with an average debt ratio of 38,446 euros excluding mortgage loans.

How to refinance a loan?

In reality there is a tool you can, if not solve, at least to curb the problem, we are talking about the fact of refinancing a loan.

refinance loan

How to refinance a loan

Often in economics we tend to favor the term consolidation because it has a more precise technical meaning. Basically, the operation takes place as a subsequent bargaining, in which the two parties, the client and the bank, look for a solution that can guarantee the interests of both. The customer is usually found with more debts to be repaid and for this he asks to refinance a loan . It is not necessary that you contract with the original party that has access to the loan, it is sufficient that you relate with a professional intermediary who is credited to perform the credit function. For this reason, you can contact both a bank and a financial company. Consolidation results in a series of beneficial effects for all the parties involved. Starting from the debtor two fundamental advantages can be highlighted.

Refinance a loan: negotiating an interest rate

On the one hand, of course, there will be the negotiation of an interest rate that is usually lower than what was established in the contract negotiations. This will lead to a smaller installment as the interest portion will be reduced by the value equal to the difference between the initial rate and the consolidation rate. This type of savings can have a different effect on the value of the debt to be repaid, depending on whether the loan has been on for a short time or is almost expiring. In fact the installments are not all the same as regards their composition.

The first installments of a loan tend to have the most interest share of the principal. This allows the issuer of the loan to immediately acquire the cost of the transaction and to recover the capital subsequently with future installments. For this reason, if a refinancing operation is carried out in the first years of loan ignition, one will obviously obtain a greater advantage deriving from the progressive reduction of all subsequent installments. In the final phase, however, the saving will be considerably lower, such as to make the operation useless.

The re-treatment of deadlines

Another very important aspect, in favor of the debtor and which we often tend not to consider sufficiently, is that deriving from the re-treatment of the deadlines. In fact, with the consolidation of the loan, the deadlines within which the principal will be repaid are prolonged. This allows the residual debt to be spread over a larger number of installments and, consequently, each installment will have an even smaller amount.

The unification of the installments

Finally, there is still a very important aspect, namely the unification of all the installments. In fact, the debtor who has contracted more debts, can take advantage of being cumulated all the installments in a single monthly solution. This allows you to keep your expenses under control and never forget the payment of an installment. The savings are certainly present in an operation of this type, however it is always good to make provisional accounts that allow you to realize what amount you are talking about.

Managing your debts better is certainly important and paying a lower installment is certainly a valid help, but every financial transaction must always be well reasoned in such a way as to never have any unpleasant surprises. Now we see the implication of the operation regarding the interests of the credit institution. Surely we must also include customer satisfaction among them. In fact, in a historical moment like this, in which trust towards banks and financial companies is at an all-time low, creating a satisfied clientele of its services is essential for securing a prosperous future.

Refinance a loan: the lender’s profits

However, of course, the grantor’s earnings do not end here. Who lends the capital must always carry out complicated calculations of convenience that allow him to understand if the operation will have a positive value in the long run. This means that the bank or issuing company must consider the risk of insolvency of its debtor. For example, lending money at a high rate does not necessarily provide an equally attractive return if the debtor is in a position to not pay. Although it is true that the creditor has useful tools to recover in any case what is due, it is equally true that these operations are never simple and, in addition to taking a long time, may not provide the desired results. For this reason, it is also in the interest of the bank that the customer is always in optimal condition to periodically pay his installment.

Consolidation allows all this thanks to different payment methods that will be decided at the time of negotiating any refinancing request. If the debtor is an employee, the method of assigning the fifth salary is usually used. This operation, as can easily be seen from the name, allows the creditor to make a deduction from the source on the monthly salary of the debtor. The latter will then see his salary credited net of debts to be paid. In this way there is no thought for the employee to pay his installment every month and, at the same time, the creditor will always be sure to receive what is due to him.

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Refinance your mortgage

Why refinance your mortgage?

Refinancing your mortgage allows you to acquire a loan with which you can develop projects that are important to you. Whether you want to finance a new home improvement project, travel, purchase a second home, go back to school, finance your kids’ education or start a business, mortgage refinancing is the perfect way to get a low rate loan. You can also use your mortgage refinancing to consolidate your debts , reduce your mortgage rate, increase your contributions to your RRSP or make investments. Whatever your project, talk to our experts, they can advise you on the mortgage refinancing product adapted to your situation!

Why refinance your mortgage?

What is mortgage refinancing?

Mortgage refinancing makes it possible to borrow a new sum of up to 80% of the repaid principal of your mortgage, and at the same time consolidate all your debts in the same place. Mortgage refinancing allows you to benefit from a better interest rate and to have cash to realize your projects. For example, if your property has a value of $ 300,000, you can get up to $ 240,000 when you refinance your mortgage. If you still have $ 150,000 left on your mortgage, you subtract it from the loanable amount and you will have the right to borrow up to $ 90,000. Of course this loan is granted on condition that a lender agrees to do so.

Moreover, the role of a mortgage advisor is to find a lender who will be able to finance you, even if you do not have a good credit rating. It is also in his mandate to find the best products among the options of all financial institutions, in order to benefit you to the maximum. Do not delay, ask for advice now from our experts!

How to refinance your mortgage?

How to refinance your mortgage?

There are many mortgage refinancing products from several financial institutions. These respond to specific needs and situations. In order to make sure that you have the mortgage refinance product that is right for you, seek the help of a mortgage advisor . Our experts are also experienced and qualified to advise you the best products. Contact us now to take advantage of their expertise and quickly obtain financing for your projects!

 

 

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Borrow 450 euros today

Forget about your Schufa information and make sure that you can borrow a mere 450 euros today at any time! You will see how fast and easy you can have just the right credit on your account when it comes to getting your finances under control. Turn to the online credit market and make sure you get exactly the right loan on the account. You’ll be amazed how fast and easy it can be if you turn to the Internet now. You have never lent money that relaxed. At the same time you simply sit back on the sofa and from there you can apply for the appropriate loan at any time of the day or night. Take this opportunity and make sure you can keep your finances under control at all times. You will see how fast and easy this is on the internet and how relaxed online you can lend even 450 euro free today!

You do not need a perfect Schufa information, because online you can easily borrow a mere 450 Euro today

The internet also makes it really easy for you to get great credit even with a bad Schufa score. So you can always ask for a loan without Schufa and so just bypass the credit check by the Schufa. Accordingly, your creditworthiness is then not assessed by your Schufa information, but you have the opportunity to submit other documents that prove your credit rating. Thus, the Internet gives you the freedom to leave your financial past behind and relax and focus on the future and your everyday life. You quickly have exactly the credit in the account you need, because on the Internet you can apply for a short-term or long-term loan very relaxed, with a loan request always have money in the hindquarters and get a mini loan as fast borrowed as a microcredit. So you can easily get 50 Euro or 1000 Euro, you can easily borrow 250 Euro or 700 Euro or apply for the appropriate loan 550 Euro or 600 Euro. Get exactly the loan that suits your financial situation and you can not only borrow a mere 450 Euro today!

If you’re in a hurry, you can still borrow $ 450 online today

You will see how fast and easy you can have exactly the right credit on the internet. Get an instant loan, express or flash credit, but also ask for a loan with immediate payment. You will see how quickly and easily you can keep your finances under control and how relaxed you get them on the account. Take this opportunity and you will be able to lend 450 € free of charge quickly and easily.

The loan application is very easy online, even if you now want to lend 450 euros today

Inquire about the appropriate loan on the Internet and then click through from the loan offer to the application form. Just fill it out truthfully and send it off. The rest is up to the credit provider who tells you if your loan is approved or not. So you always have your finances under control and quickly find the right credit on your account so that you can borrow a mere 450 euros today!

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