The number of applications for consumer credit will increase. That is the expectation now that the maximum mortgage has been adjusted from 101% to 100% with effect from 1 January 2018. Renovations, furniture and costs of the buyer can no longer be co-financed with the mortgage, which was almost a matter of course in previous years. You can finance your house with a mortgage, the other (additional) costs via an (annuity) consumer loan.
Personal loan, revolving credit or hybrid credit
Which loan form of our consumer credit do you choose? A personal loan with a fixed interest, term and monthly payments. Or do you want more flexibility and opt for a revolving credit with a variable interest rate? A combined loan of these two loan types is also possible; you then take out our hybrid credit.
This credit has been specially developed for consumers who want to borrow a high amount up to a maximum of $ 150,000. With this hybrid credit, you benefit from the advantages of a personal loan, a fixed low interest rate and a possible tax benefit, as well as from the advantages of a revolving credit, where you determine when you withdraw which amount of the credit. And you may withdraw repaid amounts.
If you are unsure about the loan types, the tax deduction of the interest costs for a personal loan may be the deciding factor. If you want to realize a renovation or improvement of the house as a loan goal, the interest is tax deductible. This also applies to the personal loan part of the hybrid credit. Interest rates are now historically low, so to take advantage of this low interest rate throughout the term, opt for a personal loan. The interest on a revolving credit is variable and therefore subject to interest rate fluctuations.
Redeem without penalty in the meantime
You can repay extra on all loans and credits with the Good lender Credit Collective free of charge during the term. You do not pay a fine for this. In the event of extra or early repayments on your mortgage, a fine is often charged for the loss of calculated interest for the bank.
Consumer credit versus mortgage
But this is not the only drawback of a mortgage co-financing. For example, if you chose to co-finance your new furniture, this meant a term of 30 years for your furniture. Very long when you consider that the economic life of furniture is a few years. With a consumer credit you take out an appropriate term for the loan so that you do not pay while the products have already been written off.
Financing residual debt
If the mortgage debt is higher than the sales price of your home, it means that you have a residual debt. You can no longer co-finance this with your new mortgage, but with a loan. And that is even cheaper. And faster; You can arrange a loan yourself online without the intervention of a notary or long lead times.
Borrow money with advice
Our advisors advise you on the most suitable loan form for your personal loan purpose. You take out a loan with us at a low interest rate and good conditions. Do you want to insure your loan? That is also possible with us with our credit protector. In the event of unemployment, disability or death, your loan or credit is insured so that no financial problems arise.