All about auto credit

Are you thinking of buying a car and looking for a car loan suited to your needs? Start by finding out about the characteristics of this financing granted by banks and financial institutions in the form of an installment loan which will allow you to obtain the necessary budget, and this, with repayment terms fixed in advance.

Everything you need to know about the car loan.

Learn the jargon related to car credit

Learn the jargon related to car credit

As of the phase of research on the internet, you will be confronted with vocabularies specific to the medium of the auto credit and it is better to inform you before the phase of negotiation with the banker who will grant you this auto financing. Thus, you will receive a prior offer of credit after the online simulation of your car loan.

This document must include your contact details and those of the credit institution, specify the nature and the price of the car to buy, present the characteristic points of the credit which are inter alia the amount borrowed, the repayment period, the effective annual rate. global or APR, insurance costs, the date of submission of your prior offer and the number and cost of installments.

For individuals wishing to subscribe to auto financing, financial organizations often offer an assigned loan contract, that is to say that the funds granted to you will only be used to acquire a specific property, in this case a car whose brand, category and type are specified in the order form or the invoice which will have served as proof of purchase.

Why do car credit simulations?

Why do car credit simulations?

Many car loan offers are available on the Belgian market, so it is essential to compare them to find the best offer.

This step is made easier thanks to the arrival of online simulation tools, comparators which act as virtual calculators to calculate your car loan according to the amount you want to borrow and the repayment duration that suits you. Thus, you will only have to indicate this data to obtain quotes from credit institutions and you will only have to choose the one at the most advantageous rate.

Credit with online decision – go with the right decision.

Taking out a loan is an important decision. If a loan should go relatively quickly, an instant loan is probably the right decision. The decision is made within a few seconds. There are some providers in Austria that specialize in making a particularly quick decision for or against lending. Comprehensive credit check the credit decision and your loan agreement.

Finally comes the ski tour.

Conclusion: Since the election on September 21, 2018 with the clear no of the Liechtenstein population, the topic “Tour de Ski in Liechtenstein” has finally appeared on the market. Apparently, the municipality of Vaduz, together with an unknown donor, helped the Liechtenstein Ski Association (LSV) plan a turnaround with surprising…

Therefore, at the end of the 300th anniversary of Liechtenstein at the end of 2019, a tour de ski stage will take place in the Warsaw region. Because the loan from the municipality of Weduz is “only” 100,000 USD and the remaining 300,000 USD will be taken over by the anonymous donor, no referendum can be carried out against this decision.

Although the LSV had rejected the International Ski Federation (FIS) after the failed election in October and since then the FIS has been looking for an alternative location, the FIS authorities are hardly going to avoid the decision. “So far, the FIS has not given any free space for Waduz, as the next meeting will only take place in early April.

Open, invest and trade online

 Open, invest and trade online

Get a loan of USD 50 and open your first free direct investment by April 30, 2019. You have created a good basis for investments in investment funds, trust funds, shares and the like. We’ll make your start as easy as possible. Open your direct depot with all the plus points in just 3 steps: Are you already a customer? Not yet.

With our securities savings plans, you can get more out of your assets starting at USD 50 a year. You can invest in investment funds, stocks, ETFs with certificates. Simply our cheap direct warehouse. With our Good Finance you can easily build up your assets with equities, funds & Co. for the next generation. You can even start on the side – whether with a securities savings plan from USD 50 per calendar month or a one-off investment from USD 500.

From now on, you can trade titles comfortably and reliably directly in the application. An improved overview of the portfolio, information on securities and financing instruments as well as the new search support you in finding, buying and managing your papers. Are you satisfied with our direct depot? Now with just one decision to become an investor.

Real estate loans: what will be the trend?

Mortgage loan rates are up slightly at the end of 2019. Will this trend continue in 2020?

Real estate brokers are observing certain signs of an evolution in the behavior of banks at the end of 2019. Indeed, several banking establishments have tightened their conditions for granting credit. What will be the trend in mortgage rates for 2020? Response elements.


Probable tightening of loan rates

loan rates

At the end of the year, loan rates remained broadly stable, at 1.05% on average over 15 years, 1.25% over 20 years and 1.45% over 25 years. According to broker Vousfinancer, the slight rate hikes observed at the beginning of November ranging from 0.05% to 0.15% only concern certain profiles, in particular low-income borrowers, and long loan durations. Conversely, other banks that have not yet exceeded their credit production targets continue to grant record rates to the profiles they wish to capture.

Thus, after a particularly dynamic year in 2019, despite the lengthening of processing times and the tightening of credit granting conditions, several brokers including Vousfinancer believe that mortgage rates will remain attractive in 2020.


Banks that don’t lend as easily

real estate loans

While they have been significantly relaxed throughout the year, the criteria for granting credit seem to be tightening. In fact, 95% of brokers made this observation in 2019 (64% in 2018) for all borrower profiles (75% of brokers) or only certain profiles (19%).

According to market professionals, most banks are more stringent on personal contribution, available savings after operation and income. Several banks are now refusing to finance certain riskier or less profitable profiles and in particular 110% financing which includes the amount of the property and all of the costs linked to the credit.


An increase in application fees

An increase in application fees

Most French banks and regional establishments have unveiled their tariff grids for 2020. While interest rates should remain low, this is not the case for administration fees. Cream Bank and Best Bank have already increased their prices.

Application fees can be particularly high for the borrower. Included in the annual effective annual rate (APR) which must appear on any loan offer, they directly impact the total cost of the credit. These costs are calculated from the amount borrowed and generally represent 1% of the capital. In concrete terms, this percentage will not be revised in 2020, unlike the amounts of the floors and ceilings applied to the application fees. In other words, as of next year, several banking establishments will impose minimum and maximum handling fees on their customers.

The higher the floor amount, the more the low income borrowers are penalized. Cream Bank thus raised this amount from 400 to 500 dollars to free up more margin on the mortgage loans it offers. For its part, Best Bank will increase its ceiling amount by 20% in 2020, increasing it from 1,000 to 1,200 dollars. As for regional establishments, a third of them anticipate an increase in application fees for next year, knowing that not all of them have yet published their price list.

To save money, borrowers can try to negotiate their fees by highlighting their strengths (income, personal contribution, professional situation, etc.).


Banks Seek Separation From Brokers


In return for a competitive credit rate, borrowers often pay a high price for loan insurance. Indeed, at the time of subscription, the banks systematically offer their group contract based on the pooling of risks. However, customers are under no obligation to subscribe to it. They can bring competition into play, notably by calling on a real estate broker. Banks thus see their margins decrease in favor of insurers.

A conflict now seems declared between banks and brokers. Some financial institutions have already stopped their partnerships with brokerage networks in order to improve their margins. While some believe that banks have less skills than them to manage mortgage loan application files, others believe that banking players will maintain their partnerships with the most efficient brokers based on the volume of business, the size and quality of the files processed. In this hypothesis, brokerage networks of significant size and structured will be favored.