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Home Loan

 

All about home loans
  
  
  
 All about home loans / Mortgage loans

 Do you want to buy or renovate a house in the Grand Duchy of Luxembourg or any other country?

 

Our brokers at Weicker & Co have an ongoing relationship with the best professionals in several neighbouring countries. These loans involve a big commitment. Therefore lending organisations justifiably ask you for certain guarantees.

 

A loan protection plan covers you for the whole term of your loan and covers your loan payments in the event of a problem (death, disability, etc.)

 

However it is important that you and your loved ones are also covered over this period! There is a solution: insure your bank loan. This way there is no risk of your loan becoming the responsibility of your heirs. Each name on the policy will be 100% covered. And the remaining balance will always be fully paid to your bank.

 

Who said that taking out a loan was risky?

 


• How to negotiate the best loan?


Avoid the some of the main pitfalls of taking out a loan by reading our 40 tips before committing.


1. The first thing to ask is if there are any file fees and how they are paid (fixed, in advance or when the contract is concluded).

2. Negotiate these file fees by putting particular emphasis on your loyalty to the bank.

3. Request several quotes for your loan from as many organisations as possible. This can only work in your favour!

4. If your bank doesn't offer the best rate, insist on it. If they can't match it, change banks. However, be aware of the service charges of any new bank!

5. Very important: Be prepared for the gap between the due date of the loan and the date it is signed at the notary. The longer the interval, the more you will pay in fees!

6. Check with your employer to see if you are eligible for the 1% housing loan and consider a loan from your employer.

7. There is specific help available for tenants, first time buyers, homeowners, landlords, people with disabilities and also for professional mobility. Consult us if you want to benefit from a 1% housing loan!

8. There are several deals available when opening a property savings account or a property savings plan: no file fees, no repayment penalties, great loan rates. There are many solutions to suit your needs!

9. A 0 rate loan is already great... but if you want some good news, you will have €1524 at 0 rate!

10. Some loans allow you to reduce the local equipment tax. Great! Ask us for advice!

11. Do you qualify for a subsidised loan (pension fund, civil servants, national aide scheme, etc.)? This may also help you reduce costs.

12. Who could act as guarantor for you? A mutual company or a natural person? Which would be most beneficial in your situation? It's something to think about.

13. Is there insurance available for your loan. This can be useful but it is not essential.

14. Think about how to distribute life insurance if taking out a joint loan.

15. Watch out for traps (unfair clauses, methods of calculating premiums, etc.) Read the terms and conditions carefully!

16. If you are under 40, buy your death and disability insurance through a broker (to get the best terms). If you are over 40 your bank will be sufficient.

17. Unemployment insurance is a social phenomenon... but often pays incredible benefits!

18. Interim interest will often increase your payments. Contact us for the best advice.

19. Are you borrowing from abroad? Consider the importance of being located near to the lender. Study their contractual clauses before committing yourself!

20. Are you paid irregularly? Customize your payment schedule and reduce the overall cost of your loan.

21. Early repayment penalties do not usually apply to home loans but some organisations add them anyway. Be careful!

22. Fixed rate or adjustable rate? Be in control of your loan

23. You can negotiate notary fees!

24. Maximize your personal contribution with a settlement, an interest free loan, a seller-provided credit enhancement or a cash payment.

25. The resale of an asset can result in a financial loss. Choose a resale warranty.

26. Transferring your loan will always allow you to benefit from better rates... while retaining your repayment terms.

27. Negotiate your early repayment allowances!

28. Banks are always looking for guarantees. It's up to you to show your credibility, so they do not need so many assurances.

29. There are numerous ways to fully or part-finance your project. Push open the doors and make yourself aware of them!

30. Have you ever considered buying at auction? Another solution for another situation.

31. Are you married or living with a partner? Be realistic and buy in accordance to your own specific financial situation

32. You can always sleep on it. Take the opportunity! It doesn't cost you anything, and you won't regret it later!

33. A contract is established "on the condition that...". Read all the clauses carefully and use them to your advantage as much as your lender does.

34. Fixed rate but variable term? Don't get it wrong, and ensure you get the right guarantees from your bank.

35. Always choose a monthly repayment and a credit cost in line with what you can afford. No matter how many years it's for...

36. Never forget that at any time, any one of us could be faced with a substantial unexpected debt.

37. Specialist institutions or traditional banks? Each institution has its own advantages and disadvantages. Find out which best fits your needs.

38. What do you think about property bundles? Judge for yourself and analyse your situation before rushing in.

39. Because specialist advice is priceless…

40. Get in touch with Weicker & Co for a personal plan tailored to you!

 

 

It is never easy to understand what the market has to offer. We will help you decide by presenting the main options.

 

Fixed rate loan:

 


Choose a simple and secure solution. This loan guarantees you a fixed rate that will not change throughout entire term of the contract and is agreed upon before signing up. As they are quite uncommon in Luxembourg, these types of loans don't feature in our services but we do encourage you to sign up with us and get to know our French partners.

 

Variable rate loan:

 

As opposed to a fixed rate loan, a variable rate loan appeals to those who like to takes risks whilst still having certain safeguards. The rate will therefore be subject to market fluctuations, with a limit at the top and a safety net at the bottom to protect you. Safeguard yourself from nasty surprises by making yourself aware of how the rates change over time.

The Fixed Rate Resetter Loan

 


And if you can't decide between the two solutions, choose a fixed rate resetter loan which will give you a fixed rate over a number of years that is later revised as a variable rate loan. If you are looking for a joint home loan, this solution is for you.

 


Not all the solutions are listed here: for a more detailed set of options, give us a call!


 

   
     
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