Friday, September 25, 2020

Build – cheap credit for families


Families sometimes have a particularly difficult time financially – even if a family receives child benefit or the child allowance for every child who lives in the household and is not yet of legal age. The banks have also adjusted to the difficult situation of many families and offer very special, target group-specific products in the area of ​​construction finance.

A good example of discounted conditions for large families would be that the repayment can be suspended during parental leave, or that the family pays reduced interest for each child. Unfortunately, such offers are not very common and Lite lending company is more or less an exception – at least for the time being.

Child benefit enables interest to be discounted

Child benefit enables interest to be discounted

The discount that families receive as part of the so-called family mortgage is usually reflected in a small discount on the financing interest; the target group is especially young parents. Such an extension can be explained in more detail using the example of Lite lending company: in the case example, there is an interest reduction for 5 years per child, provided, however, that the legal guardians have already received child benefit for the child or children before submitting the loan application. The fixed interest period remains unaffected by this interest reduction.

Child benefit can be seen as an additional security or source of income, the banks take child benefit as a positive criterion, which can have a significant impact on the loan approval in case of doubt. As an additional incentive for its family mortgage, Lite lending company also offers a special repayment right, which is limited to a maximum of 10% of the loan amount.

Family mortgage in comparison

Family mortgage in comparison

Unfortunately, it is extremely difficult to accurately compare normal loans with a family loan because there are many factors to consider. Basically, however, one can assume that a solid annuity loan is cheaper than a family mortgage if only one child lives in the borrower’s household. Since the mortgage lending limit for a family mortgage is rather low, the loan can become more expensive if the borrower does not have sufficient equity.

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