Cheap credit online: where to find the best rate?


Finding cheap credit is one thing; receiving a positive opinion is another. Everything you need to know to identify the cheapest consumer credit actually accepted immediately. This article deals with the search for a cheap consumer credit and therefore excludes real estate projects. The story is on

Where to look for cheap credit?

Where to look for cheap credit?

Cheap credit often rhymes with online credit. These specialists in consumer credit redouble their solutions to offer ever faster and easily accepted credit at the best rate. They differ from banks, which are more specialized in mortgage lending, but also from more traditional players (dealers, insurers).

Cheap credit = best APR rate

The APR rate has been designed to allow the consumer to easily identify the cheapest credit.

Mentioned on all credit offers, this rate includes both interest and the cost of any administrative fees. It actually represents the real cost of a loan. It should never be forgotten that a cheap loan under similar conditions (amount / duration) is always the one with the lowest APR rate.

Using a comparator, the good idea

Using a comparator, the good idea

The use of a comparator perfectly meets a search for cheap credit. We will see in a second step how to use a cheap loan proposal online to compete, and thus ensure that you get the best possible rate.

Our comparator guarantees:

  • The choice of all projects (personal loan, car, work, small credit, etc.)
  • A classification based solely on the APR rate
  • An immediate response in principle at the best rate for rapid credit
  • The ability to interview at least each of the top three organizations

Each file receives an evaluation without commitment in real time. In case of refusal of the request at the best rate, it is possible to request the organization classified 2nd, then that classified 3rd.

Example of the result of a cheap credit questionnaire carried out from our comparator, for a credit request of 8000 USD over 60 months.

This system makes it possible to increase the chances of obtaining a cheap online loan, at the lowest tailor-made rate for each file. A positive credit opinion is indicated with an acceptability rate> 50%. A refused request, on the other hand, is reported with a rate <5%.

Cheap Credit Online: Compare APR Rates

Cheap Credit Online: Compare APR Rates

To understand the interest of finding easy and cheap credit and not to be convinced by any advertising, the most effective is to carry out a simulation.

So let’s use our comparator to get the best rates for the same loan, in the form of a personal loan of $ 10,000 over 48 months.

Comparison of personal loan rates $ 10,000 over 48 months Fixed APR rate Monthly fees Total cost of credit
Organization n ° 1 2.90% 220.73 $ 595.04 $
Organization 2 3.90% 225,04 $ 801.92 $
Organization n ° 3 5.70% 232,82 $ 1175.36 $

– rate statement made in October 2019, classification likely to change over time –

Cheap credit ranked first costs $ 580.32 less than the third in our ranking. The gap increases even more when you go down in the ranking. The organizations compared are, however, all big names in consumer credit. No need to go much further to understand the value of a comparator.

Cheap credit refused: the reasons explained

These are always cheap credit solutions that invade TV spots or advertising displays. It is important to be wary of the APR rates from advertisements. These attractive rates are in fact most of the time associated with short repayment periods, implying monthly payments that are inaccessible for the vast majority of French people.

Finding cheap credit is pointless if it is turned down. Our goal is to offer fast credit (immediate response) that is truly accepted. There are therefore no unpleasant surprises once the agreement has been received, provided that the documents correspond to the situation indicated in the questionnaire. We are leaving false promises to advertisers.

Cheap credit: the most classic traps

Cheap credit: the most classic traps

In consumer credit there are 2 main traps:

1 – Ultra-selective ultra-cheap credit

Promotional rates are mainly associated with short repayment terms (12 or 24 months). But almost no one borrows – or is accepted – over 12 months, because the monthly payments are too large. The organization can then initiate a commercial logic by proposing a longer repayment duration, adapted to the borrower’s situation. An alternative proposition at a rate that is often funny.

2 – The blow of the “fake” online comparator

Some sites offer rankings that look like comparisons, but actually only show the credit agencies that guarantee the most profits. Our comparator offers a ranking based on only the best APR rate.

Only a request for a credit of 4000 USD or less combines the rate and the chances of receiving a rapid online credit advice, since the classification concerns revolving credit.

A cheap credit thanks to the couple of duration / monthly payment

A cheap credit thanks to the couple of duration / monthly payment

To get a loan at the best rate, try to choose the shortest possible term. Indeed, the longer the credit is to be reimbursed, the more interest there is to pay. This is the factor that most influences the cost of a loan. We therefore advise to be extremely careful to find cheap credit.

It will nevertheless be wary not to reduce the duration too much, at the risk of ending up with a too high monthly payment. When the amount to be repaid each month exceeds a debt ratio (what is it?) Greater than 33%, there is a good chance that the credit will be refused.

Play the balance between rate and duration

Take an example of an 8000 euro personal loan over different durations, in order to clearly see the differences in monthly payments and APR rates.

The 24-month credit costs $ 271.80 in this example, but involves repaying $ 344.70 every month. The 60-month offer is very expensive, since the interest amounts to $ 905.80. However, the monthly payments are $ 148.43.

The main thing is to find the combination that best fits your repayment capacity. The shortest duration is, however, generally more advantageous with a view to finding cheap credit.

Cheap credit: a quest for the best rate

Cheap credit: a quest for the best rate

The law has recently provided a more firm framework for the management and distribution of consumer credit. In particular, it defined a benchmark rate: the APR (Annual Global Effective Rate).

This rate helps identify a cheap credit from another to avoid, without having to look any further. The APR includes all of the credit costs. The rate is thus mentioned on any prior offer of credit, as well as in any form of advertising (poster, press, internet).

It is made up of interest on the credit and all other ancillary costs, such as, for example, administration fees. The APR is fixed in most cases and only revisable in the case of small revolving credit. This distinction is due to the slightly different mechanics of this type of loan.

The importance of playing competition

The importance of playing competition

No secret, the best way to get cheap credit is to compete. Problem: going to raise all the rates for all the terms with the largest credit organizations can quickly prove tedious.

There are really many organizations, especially since you have to think of banks and possibly builders or insurers in the context of an auto loan. Craftsmen can also offer works credit, adding another actor to the list of potential lenders.

Cheap credit: method of comparing offers

Our comparator has been designed to allow easy credit. Once the best rate has been pre-accepted online, all that remains is to go to “physical” competitors (concessions, banks), on the basis of the rate obtained from the largest organizations.

Astro Finance: a revolving credit over 6 to 12 months at 3.90% fixed APR

Astro Finance is one of the credit organizations offering the most promotions during the year. The specialist from the Society General group confirms its status, with a revolving credit at the fixed APR rate of 3.90%. A promotion valid until February 3, 2019, over 6 to 12 months, up to a limit of $ 5,000 borrowed. All the details of the offer.

Astro Finance: a revolving credit at 3.90% fixed APR

Astro Finance: a revolving credit at 3.90% fixed APR

Credit agencies do not cut prices but rates during winter sales. Regularly on the front line in the race for the best promotions, Astro Finance marks the occasion with a revolving credit at 3.90% fixed APR. Details of the offer:

  • Amount: from 500 $ to 5000 $
  • Duration: 6 or 12 months only
  • Rate: 3.90% fixed APR
  • Period: from January 1 to February 03, 2019

Good to know : if this promotion is offered at a fixed APR rate, the revolving credit contract is subject to the adjustable APR rate. This means that it is subject to change, mainly when the available money is reused. A classic use of the Astro Finance revolving credit is currently obtained at an APR rate of 21.20%…

Our opinion on the Astro Finance promotion

Our opinion on the Astro Finance promotion

This offer of revolving credit at the APR rate of 3.90% is very attractive, since the revolving credit rates are on average between 15% and 20%. Let us simulate two loans under the conditions of the offer in order to project ourselves.

Example of Astro Finance revolving credit:

Astro Finance revolving credit simulation, under the conditions of the special offer (until 03/02/2019) Fixed APR rate Repayment period Monthly fees Total cost of credit
Request of 1000 $ over 6 months 3.90% 6 168.53 $ 1011.18 $
Request of 2500 $ over 12 months 3.90% 12 months 212.58 $ 2552.16 $

Benefits of the Astro Finance revolving credit

Benefits of the Astro Finance revolving credit

The Astro Finance revolving credit has several advantages:

  • The online response in principle is immediate.
  • It can be obtained 100% online, thanks to the electronic signature.

Be careful not to ask for too large an amount, greater than its repayment capacity. Revolving credit is certainly more flexible and easy to obtain than a personal loan, but can also sometimes be difficult to repay. A request for 5000 $ over 12 months implies, for example, monthly payments of 425.36 $. A more traditional personal loan makes it possible to amortize the credit under advantageous conditions over more than a year.

Get the best credit rate: compare easily

To get the best credit rate, you need an objective comparison of the credit rates of the largest financial organizations. But this is not enough, you must be very vigilant on the following points:

  • Use the legal rate: APR (Annual Global Effective Rate)
  • Be wary of inaccessible promotional offers
  • Trust only known financial organizations

Getting the best rate of consumer or real estate credit has no interest if the loan is refused after studying the file. We have therefore also put together in our credit comparison a system allowing us to obtain an immediate response, with no unpleasant surprises upon arrival.

NB: Our exclusive comparator not only makes it possible to obtain the classification of the best rates from the largest credit organizations but it also provides a response in principle in real time from the cheapest organization. This lets you know what better rate everyone can actually get.

Get the best legal credit rate (APR)

Get the best legal credit rate (APR)

The overall effective annual rate, in accordance with law L313-1 (implementing decree in 2011), includes all the costs included in a loan, including administration fees. It is therefore the rate that must serve as the basis for any credit comparison. Many comparators do not take this into account when presenting rankings that benefit them but not necessarily the customers. Before taking out a loan, it is always very important to check this APR rate.

Distrust of inaccessible promotional offers

It is very common to see offers of the “ rate from 1.50% ” or even “ 0% rate credit ” type, especially at car dealers. For all these offers, the mechanics are generally always the same:

The lowest advertising rate is only valid over a 12-month credit term. However over 12 months, the monthly payments of credit explode and it is very difficult to obtain the best rate in this case. For example, for a credit of 8000 USD, the monthly payments to be reimbursed will be more than 650 USD, which very few people can afford. But it does not matter, the “marketing” trap worked: the customer called and the advisor can then propose another offer over a longer period so that the credit can be accepted BUT the rate will no longer be at all even .

Trust only big brands

Credit scams are increasing with the development of the internet. And the operating mode is almost always the same: a person testifies to have been in great financial distress, no bank having wanted to lend him money. Or we make you believe that you will be able to get the best rate very easily …
A mysterious individual, Mr. X or Y, got him out of this bad patch thanks to a loan of 500 USD to 500,000 USD at a very low rate.

TOP 3 of the best credit organizations

TOP 3 of the best credit organizations

The ranking of the best credit organizations is quite variable because they all permanently offer thousands of offers. So there is not one from whom you can get the best rate systematically. Indeed, if we cross all possible repayment durations with all amounts and all types of credit, we get thousands of combinations.

And an organization can sometimes make it possible to obtain the best new auto credit rate but a catastrophic personal loan rate. This is the reason why, it is essential to compare. Our databases are constantly updated with all the latest offers from the largest credit organizations. To be able to propose a ranking, you have to average what has been proposed since the beginning of the year.

Loans between individuals or commercial loans: what is the best option?


As a small business owner, you have several options when you need funds for your business. Traditional low-interest bank loans are often the first option for many entrepreneurs. However, not everyone is eligible for a bank loan. If this is your case, you can use an alternative online lender or a relatively new loan method: loans between individuals.

While loans between individuals have gained popularity in recent years, they are aimed primarily at those seeking personal loans. However, some private lenders also offer commercial loans. Some of the most popular companies in this category are Lending Club , Funding Circle and Prosper .

But, should you resort to loans between individuals? Or is it better to opt for another alternative? Before answering these questions, let’s understand how loans between individuals work.

What are loans between individuals?

money loan

A loan usually involves a financial institution such as a bank or a credit union that advances funds to a borrower. But in a loan between individuals, the relationship is established directly between the borrower and an individual. The service that facilitates loans between individuals (also known as P2P loans, from English Peer-to-Peer ) acts as an intermediary between both parties.

How does that facilitate the process? Why eliminate the financial institution from the equation? Doing this provides benefits for both the borrower and the lender. Without the intervention of a bank involved, borrowers can receive funds at a lower rate, while investors (people who are advancing cash) can obtain a higher return.

At least, that’s how it should work. But we must bear in mind that the loan service between individuals, acting as an intermediary charges a closing fee, which could be a significant amount. For example, Lending Club, a popular P2P lender, requires borrowers to pay a startup fee that ranges from 3.49% to 7.99%. With a loan of $ 30,000, the rate could be up to $ 2,400.

To understand this type of financing in detail, first read what loans between individuals are .

Advantages of loans between individuals

⇨ The whole process is done online. Usually, you don’t have to send any paper documents.

⇨ Funds may be available in a matter of days. You do not have to go through a long approval period.

⇨ Most P2P loans do not carry a penalty for prepayment.

⇨ You can usually use the funds in any way you like. Of course, the use is restricted for commercial purposes.

⇨ Borrowers rejected by banks may discover that they can obtain a P2P loan, being more flexible with their requirements.

Disadvantages of loans between individuals

⇨ If you have bad credit, you will have to pay a high interest rate.

⇨ The amount of a loan between individuals is quite limited.

⇨ Closing rates can increase the total cost of the loan.

⇨ Delaying your loan payments can hurt your credit score.

⇨ Some private loan service websites require you to pay various fees in addition to the interest you are already paying. You could be informed about these hidden rates only after taking the loan.

⇨ As a borrower, you could be subject to a scam. A fraudulent service company between individuals may ask you to pay the closing fee and then disappear.

So, is it a good idea to apply for a loan on a private loan service website? Or is a traditional loan for a small business still a better idea?

Loans between individuals and traditional commercial loans: comparison

Loans between individuals and traditional commercial loans: comparison

Compare the main characteristics of loans between individuals and traditional commercial loans offered by banks:

  Loans between individuals Traditional Commercial Loans
Interest rate If you have a good credit score, it is possible to get a good rate They are usually lower
Loan limit Most P2P loans are for small amounts. Banks have higher limits. If you are eligible, you could borrow everything you need
Speed ​​of approval You can receive the funds in a few days Normally long process. It may take weeks to receive the funds
Probability of obtaining a loan with bad credit it’s possible Quite unlikely
Use of funds Borrowers can decide how to use the funds The lender will specify how to use the funds

Here is another comparison of the two types of loan:

Loans between individuals and traditional commercial loans

One of the biggest disadvantages of a commercial loan is that the approval procedure can be cumbersome. You may have to submit several paper documents and wait weeks to get a response from the bank. If you need a quick response, a loan from Minekilos Financial, an alternative online lender, might be your best option.

In fact, Minekilos Financial has fewer loan requirements than other lenders .

Next, let’s compare loans between individuals with alternative loans for small businesses.

Loans between individuals and alternative commercial loans: comparison  

money cash

Alternative lenders can be a good option for many small business owners. Credit requirements are usually more flexible than those of a traditional bank. Alternative lenders also have another significant advantage: they can process a loan application very quickly.

This is how both forms of financing compare:

  Loans between individuals Alternative Commercial Loans
Loan Amount The amount could be less than what you need The amount may be greater.
Interest rate If you have bad credit, you could pay a high interest rate Normally lower rates than in P2P loans
Required documents Minima. But you might have to present a business plan or justify why you need the funds. The lender will ask you for financial statements and bank statements
Time to get the funds It is possible to get quick approval Quick approval
Use of funds Borrowers can choose You must use the funds for your company
Probation process Online Online

Here is another comparison of the two types of loan:

Loans between individuals and alternative commercial loans

For most entrepreneurs, an alternative business loan is the best way to obtain funds for your company. Borrowing from a lender like Minekilos Financial can provide you with the cash you need in a very short time and with a very simple approval process. We invite you to invest a few minutes of your time to see in detail how the commercial loans of Minekilos Financial work .

Minekilos Financial: your best option

money loan

At Minekilos Financial, we will do our best to provide you with access to the capital you need for your small business. We are faithful to our motto: “We do not close the doors to any business”, and that is why our loans will offer you a series of advantages that you will not find in other lenders:

Our bilingual loan specialists will guide you at home step of the loan process


⇨ Like loans between individuals, our entire process is carried out online, in a totally safe and effective way. This gives you quick access to funds , which can be reduced up to two days. But unlike loans between individuals, we offer you many more advantages.

⇨ The amounts of our small business loans range between $ 5,000 and $ 400,000, an amount greater than you could possibly get with a loan between individuals, and are available at monthly interest rates between 1% and 2.5%.

⇨ You will only have to pay a closing fee. There is no other fee and your monthly payments will be fixed and will never change. There are also no penalties for prepayment if you decide to pay off your loan in advance.

⇨ Our requirements are very flexible. For example , you do not need a Social Security Number to apply for a loan. With your ITIN is enough.

⇨ Nor do we need you to present any type of guarantee to secure your loan.

⇨ You don’t need to have a minimum credit score (FICO), and you don’t need a credit history.

⇨ After nine months of making your payments on time, you can get a new loan for a larger amount and at a lower interest rate.

⇨ We provide customer service in English and Spanish.

⇨ Our commercial loan specialists will help you at every stage of the process and make sure you get the lowest possible interest rate.

⇨ We provide our members with access to a large number of educational resources that are updated periodically.

⇨ Our clients are happy to work with us because they receive individual attention and support from our dedicated team of professionals.

If you need funds for your company, apply for a commercial loan . You will know instantly if you prequalify and your application will not affect your credit score.

Moneyta Money Bank Login to Internet Bank, Branch and Contact

Previously we could have known this bank under the name of Firstlook Money Bank. The main focus of the institution is financial services such as providing loans to individuals, but also entrepreneurs. Furthermore, they are mortgages current accounts, credit cards and / or savings or investments. The company has more than 200 branches and 650 ATMs.


A quick loan for anything

A quick loan for anything

  • CZK 5,000 to CZK 800,000
  • maturity from 2 to 9 years
  • interest rate from 4.9% per year (APR from 5%)
  • free early repayment
  • the fee for providing a loan at a branch or by telephone is CZK 1,295


Merge loans

Merge loans

  • possibility to merge old loans, overdrafts or credit cards (up to 50% can be saved)
  • + extra money
  • the provision of a loan at a branch or by telephone is subject to a fee of CZK 1,795


New car loan

New car loan

  • financing up to 100% of the vehicle price
  • you set the amount of repayments yourself
  • all documentation can be handled directly at the seller
  • the first installment only after 30 days from the receipt of the car
  • the loan can also be used for a commercial vehicle up to 3.5 tons
  • maturity up to 84 months




  • interest rate from 2.7% (using savings)
  • up to 90% of the value of the property
  • up to 30% of the loan amount can be used for anything
  • refinancing existing mortgages


American mortgage

  • for property owners
  • up to 70% of its estimated price
  • interest rate from 3.99% pa
  • Free property estimation
  • free mortgage insurance against serious car accident
  • Mortgage processing fee of 2 900 CZK


Moneyta Internet Bank

Moneyta Internet Bank

Internet banking called Internet Bank is a great tool for managing all your finances. You can also shop online or save money for worse times.

You can find the complete list of branches and ATMs directly on the Moneyta Money Bank website in the contact section.

Mortgage interest forecast August

What does the mortgage interest rate do in August? We have listed the most important developments for our interest rate expectations, for example about Greece and inflation.

Relative tranquility

 Relative tranquility

The previous forecast (July) was dominated by the Greek crisis. The uncertainty was that investors would opt for the safe Euro countries due to the uncertainty. We see that capital market interest rates fell slightly as a result in July (more supply in the market). A departure from Greece from the Eurozone is (ultimately) averted. There is now relative calm on the financial markets .

Three factors

 Three factors

We see the following three factors that influence interest rate development :

  • Greece must now meet Europe’s requirements. This will continue to provide exciting moments in the coming period.
  • Low inflation also continues to affect the Eurozone. After a few months in which inflation rose, it remained the same in July.
  • In addition, the ECB’s buy- in program is in full swing.

Long-term mortgage interest rate forecast

 Long-term mortgage interest rate forecast

The above three developments have a depressing effect on the capital market interest rate. For our forecast, we combine this with the relative calm that the markets are currently in. We then come to the conclusion that the mortgage interest rates for the long fixed-rate periods in August remain at the current low level and may fall slightly .

Expect short fixed-interest periods

Expect short fixed-interest periods

We can be short about the short-term fixed-interest periods (up to 1 year). The ECB maintains its current interest rate policy, which keeps market interest rates low. The short mortgage interest rate therefore remains at the current low level .

Tip: register for the Interest Rate Flash and follow the mortgage interest closely . Here you will find more information about the interest rate expectation.

History mortgage interest forecast:


  • Mortgage interest forecast January


  • Mortgage interest forecast December
  • Mortgage interest forecast November
  • Mortgage interest forecast October
  • Mortgage interest forecast September
  • Mortgage interest forecast July
  • Mortgage interest forecast June

Virtual Credit Card: What is it and How Does it Work?

Rate this post Internet has become an indispensable part of our lives to the point that we do not take a step without resorting to this tool. Therefore, Mexican companies created a system to use the virtual credit card, which does not stop with the physical obstacles of the financial world.


What is a virtual credit card?

What is a virtual credit card?

A virtual credit card consists of an electronic payment method to buy online or by mobile phone. Depending on the bank you use this will indicate a series of steps to request your digital card.

Being virtual, it is only intended for online purchases. It will give you more confidence the fact that you should not share your personal data when shopping online.

These cards do not have the same conditions as conventional ones, that is, they do not have a magnetic strip. What they will have will be a card number, an expiration date and a control number . You may also be asked for security checks with the help of codes sent to your cell phone.


How does it work?

The virtual credit card will have the balance that you provide from your bank account. This is even an advantage because you set a line on what you are going to spend. Thanks to this reflexive and premeditated purchase system, you have more control over your purchases, reducing the possibility of borrowing.


Benefits of having a virtual credit card

Benefits of having a virtual credit card

Being completely digital, this card cannot be lost and you will never have to suffer the loss of the plastic. In addition, you will not have to worry about the security of your card, since it has all the protection mechanisms of a normal card.

Also take into account that being a card whose processing is free, you will not have maintenance costs or commissions for carrying out operations with it. What are you waiting for to obtain one?


What are the virtual credit cards in Mexico?

What are the virtual credit cards in Mexico?

Search in Mexico for the best alternative for you, so here are three options for you to be encouraged to get your own digital TDC:

  • Wisemoney Wallet: has an application to control your money. When you are backed by MasterCard you can choose to request a plastic and have it sent to your home, or use it in an intangible way.
  • The Mananga Rechargeable Panorte Card: Or through the MasterCard network and is issued by Banorte. To this card you can enter all the capital you plan to spend to use it through the network. A particular benefit is that you will get a $ 150 coupon for purchases on Amazon. eye! This is not a credit card, rather it is debit card
  • Wexi Credit Card : a card that can only be processed online and does not require you to present your credit history. It is backed by a Card and you can present it at any store in Mexico when the physical is sent to your home.

In conclusion…

If you hire a virtual credit card you will learn to manage your money in a healthy and premeditated way. Say goodbye to debts and give yourself the opportunity to use the new alternatives that banks give you to make better use of your money.

Mortgage – How Do You Compare And Find The Best Mortgage?

A mortgage is a loan used by a buyer to acquire a home. A mortgage is usually issued for the purchase of a home, but it can also be obtained for home renovation or investment.

A mortgage is essentially a mortgage. The lender grants the loan and uses the apartment as collateral for the loan. The lender thus reserves the right to housing if, for any reason, the debtor fails to fulfill its obligations.

In Finland, mortgages are mainly granted by large commercial banks. Banks provide mortgages to individuals or companies looking to buy an apartment or property.

The characteristics of a home loan, such as loan size, loan length, interest rate, loan repayment method and other characteristics may vary considerably.

Why apply for a mortgage?

Why apply for a mortgage?

For many people, buying a home is not only a dream, but also the biggest and most important purchase decision. Renting a home is a very typical form of living before buying a first home. So why is a mortgage worthwhile?

When you rent, you pay for the apartment to the owner. If, on the other hand, you take out a mortgage and buy your own home, you repay the loan and raise capital for yourself.

In many cases, the monthly cost of housing can also be lower than the rent. If the repayment of the mortgage and the housing fee charged by the housing association are less than the rent, buying a home is an economically viable decision.

Since borrowing is one of the biggest decisions in life, you should plan carefully. There are many different, many aspects of home loans that you should be aware of.

Conditions for a mortgage loan

Conditions for a mortgage loan

In principle, most retail customers can get a home loan as long as the income level is high enough and there is no major disruption in credit information. Banks pay attention to how well the borrower has handled their finances in the past.

Banks are most sympathetic to customers who have a stable and ongoing employment relationship. However, this is not always a prerequisite for a loan if the assets and solvency are otherwise demonstrable.

Because the bank always makes a loan decision on a case-by-case basis, it is a good idea to prepare your loan negotiations carefully. Often the lender wants detailed information about the applicant’s finances.

Applying for a mortgage in practice

Applying for a mortgage in practice

It is a good idea to reserve information on your income, assets and liabilities for the conference. Your bank will also check your credit information, so if you have any notes, you should be prepared to find out. Often, small debts that are a few years old are not a barrier to getting a loan.

Whenever you apply for a mortgage, the financier wants to know the applicant’s current obligations. So, when you collect information on your existing loans, it is easier for your bank to make a valuation.

The bank is also interested in the applicant’s funds. For example, if you own a portion of a property, summer home or plot of land, this can have a positive effect on your loan application. Equity holdings and securities holdings are also worth exploring.

Loan Negotiation Checklist, What to Include?

  1. Your latest pay slip, at least three months
  2. Information on holdings: real estate, stocks, savings, etc.
  3. Estimate of monthly expenditure
  4. Proof of current loans

You must go through the loan negotiations before making a home offer. This allows the bank to make a loan commitment, a decision about how much they are willing to finance your purchase. The loan promise does not obligate you to take out a loan yet.

In general, the bank requires about 10-20% self-financing. So if you want to buy a home that costs € 200,000, you should have at least € 20,000 in cash or assets. Often banks have a handy mortgage calculator that makes it easy to rotate numbers. If the amount in question is not yet in your account, your bank may require you to save some time.

Mortgage interest rate

Mortgage interest rate

Like other loans, the mortgage is also paid interest. The interest rate is determined by the lender and tied to the loan amount. Mortgages granted in Finland and elsewhere in Europe are tied to a general interest rate, such as Good Finance. Good Finance is the common reference rate for the euro countries, on the basis of which banks lend money to each other.

The mortgage borrower becomes familiar with the Good Finance interest rate and is usually used as a reference rate when borrowing. Often a loan is linked to a 12-month Good Finance, but one, three or six month interest rates can also be used, which means that the interest rate of the loan is reviewed more frequently.

In addition to the Good Finance rate, the bank adds its own margin to the interest rate. This varies from customer to customer. Banks determine the level of risk for each customer and each item, and charge a loan margin based on these.

So the mortgage rate always depends on your personal situation and your finances. When considering a mortgage, it is advisable to calculate the costs accurately, for example, using a loan calculator.