Relocation loan: To the new home
Important to the removal loan
- Set up a cost plan before the move
In order to find out the optimal loan amount, you should definitely set up a cost plan before the move. Do not calculate too close, but calculate a buffer – so you have in surprising twists still air.
- Moving loan instead of dispo
Pay the move best not with a disposition credit: The interest on these are often disproportionately high, much cheaper comes in such a case, then a special relocation loan.
- Specify collateral
Additional guarantors and other collateral can be a good way to get more favorable terms from the credit bank.
Deposit, brokerage commission, new furniture as well as costs for relocation helpers and moving floats – the financial expenditure for a move can quickly exceed the monthly budget. Often there comes together a sum of several thousand euros that not everyone can handle. One way to finance the move, offers the so-called relocation loan.
How to find the right relocation loan
Whether it’s a job change, a change of scenery or family changes: there are many reasons for moving and planning and implementation are always costly. This not only includes the organizational effort, but also the financial.
Because a move is always associated with high costs, which can hardly be avoided: For the new apartment deposit and the first monthly rent must be paid, relocation helper and a moving van must be rented, may be brokerage commissions and new furniture or a new fitted kitchen must be purchased become.
Depending on the size of your household, the costs associated with the move may amount to several thousand euros. Anyone who has not already accumulated a large cushion and does not want to exhaust his credit, can hardly pay these costs out of pocket. To instead an appropriate credit to find, recommend a loan comparison.
You should not use your credit line for financing
Even if the credit line would be sufficient for the expenses, it is not advisable to make use of it: with 9 to 13 percent, the interest is disproportionately high. If the MRP is exceeded, so-called overdraft rates also accrue – and these are usually much higher than the disbursement interest.
Instead of using the dipos, it may be more advantageous to take out a removal loan. This is usually a normal installment loan, the banks between 500 and 50,000 euros awarded with terms of between one and ten years.
Here, the interest rates are significantly cheaper than a credit line. Banks usually do not require collateral in the form of valuables for such loans. A proof that the borrower can pay the accruing installments is sufficient. This can be done in the form of payroll. If this evidence can not be provided, it is possible to use a guarantor.
The right term: Balancing between monthly rate and interest rate
There is a simple rule for the duration of loans: the longer the term chosen, the lower the monthly burden, but the higher the interest. The fact that interest rates rise with an increasing maturity is due to the much higher risk that the bank absorbs. In the case of a long repayment period, there is the risk of a payment default, which may not be foreseeable at the time the contract is concluded.
The higher interest rates increase the total cost of the loan. In the case of a loan with special repayment rights, there is nevertheless the possibility of keeping interest rates low and shortening the term.
If, due to your financial situation, you are able to repay the loan quickly, you should definitely choose a short term of 12 to 24 months. This has several advantages: Interest rates are significantly lower, as the credit default risk for the bank is lower. In addition, you yourself are faster debt free and can keep the total cost of the loan lower than a long term. Especially with a small loan amount, it is advisable to choose a short term.
Amount of credit: how much credit is enough?
If you apply for a transfer loan online, you can choose between 500 and 50,000 euros, depending on the bank. The amount of the loan does not only depend on your own wishes, but also on your credit rating. If this is rated as very good, the bank expects you to be able to repay the installments over the entire term.
On the credit rating can also influence your profession. Those who can guarantee a steady income have a better chance of getting a high loan than self-employed or freelancers.
Of course, the optimal amount of your loan also depends on your move. Before moving, therefore, set up a comprehensive cost plan that lists each item with the expenses incurred. So you can get an overview and also plan a buffer for unforeseen eventualities.
Purpose: The move is not a special case
In the case of earmarked loans, as the name suggests, its use is linked to a specific purpose. Thus, the use of capital is very limited and narrowly prescribed. At the same time, the purchase is considered collateral for the bank. For a real estate loan, therefore, the land register entry is considered collateral. If you are unable to pay your installment, the bank can foreclose the house. Due to the appropriation and the associated minimization of the risk, these loans are generally cheaper.
However, such a purpose does not exist for moving loans. Because these are usually nothing but a installment loan. It therefore does not matter what you use the money for: whether you use the loan to finance only commissions and the first month’s rent or the entire home furnishings is up to you. If you want to renovate or modernize your new home, in turn, offers a earmarked housing loan. Here, too, comparisons are worthwhile, as an installment loan can be a cheaper alternative.
How to identify cheap loan offers
When looking for a suitable removal loan, you should not decide hastily. To see if the loan is actually as cheap as it seems, you should pay attention to details. Particularly important here is the annual percentage rate. Each provider must clearly show all the costs incurred for the loan. These include the borrowing rate and the so-called annual percentage rate. Basically, the loan with the lowest annual interest rate is the cheapest loan, because this interest includes all borrowing costs. Therefore it should be used to compare different offers.
The following criteria help you to recognize a good loan offer:
- You can minimize the cost of the loan if you repay it as soon as possible. In the best case, calculate how much you save by repaying the loan in 24 months instead of 48 months.
- Find out if you can take advice breaks. So you do not fall into arrears in case of emergency.
- Meaningful are special repayment rights that allow you to repay the loan in whole or in part. Make sure that these rights are granted to you free of charge.
- Experts advise against concluding a residual debt insurance, as this is usually too expensive and unclear.
- In any case, you should compare as many offers as possible and submit individual offers. Because banks advertise with the best possible interest rates, which are mostly unrealistic.
Step by step to your relocation loan
To find a suitable loan, you do not have to rush from bank to bank. You can easily make a credit comparison online. For this you usually only need the desired sum and duration. Then you will see suitable offers in a list, which you can compare with each other on the basis of the interest rate, the monthly rate and other details.
If additional awards are displayed, you can see how the offer has cut off in tests. First of all, however, you should calculate how much the loan amount should be and how much money you have to spend a month to pay the installment.
So you can calculate your loan volume
Make a cost estimate of your move by taking into account all the items you have – everything from bail to moving boxes. In the best case, it will start as soon as your move is over so you have plenty of time to compare loan offers and, in the event of a rejection, contact other banks.
Furthermore, you should set up a realistic budget account. This can be used to calculate how high the monthly repayment rate can be. Make a note of the monthly net income of your entire household, and then deduct any fixed costs, such as:
- Rent incl. Additional costs)
- Car (including insurance and fuel)
- Telephone, mobile phone contract, internet, television, broadcasting fee
- Ready existing rates
- Livelihood cures (food, clothing, personal care)
- Membership fees (eg gym, clubs)
The difference is the maximum monthly rate you can afford. However, this amount should not be completely exhausted, otherwise you may get problems with unexpected expenses.
Once the loan amount, the duration and the amount of the installment are determined, you can use this data to start a credit comparison. It is possible to play through different financing situations by varying the loan amount or the terms. For example, you can lower the loan installment for a longer period. But keep in mind that interest payments increase.
If you now have a few providers in the shortlist, you can find out more about the corresponding offer from the banks. Here you can find out which maturities can be selected, what type of interest is offered and whether there are options for special repayment or installment adjustment. If you have finally decided on a loan, you can easily apply online.
Required documents for the loan application
In order to shorten the processing time for the loan, you should have all important documents ready. These include:
- Payrolls of the last three months. Often also account statements are required.
- Often a completed self-report.
- Pensioners have to present proof of their pension as proof of income. Some banks have age limits due to the risk of default.
- Self-employed and freelancers, unlike employees, can not guarantee a specific income for a longer period of time. Proof of income must show that the monthly installments can be paid. For this purpose, business analyzes, account statements, revenue-surplus invoices or loss-earnings invoices can be submitted. Often, higher interest rates are incurred for this group of people.
Banks initially attract with attractive interest rates, which usually do not correspond to reality. You will receive your personal loan offer only after entering all relevant data. For example, the interest rate can change upwards or downwards due to your credit rating.
Request in advance a Private credit information
Request a Private credit statement before applying for the loan yourself. As your credit rating has an influence on the interest rate, banks rely primarily on the information provided by Private credit. If you discover incorrect information that degrades your credit rating, you can have it corrected. Only with a certified Private credit score should you submit the loan application.
The actual loan application
If the bank has no proof yet, the loan is only granted on a provisional basis. Since your data can be matched very quickly online, you know immediately on what conditions the loan can be granted to you. The data you enter usually creates a PDF form and makes it available for download. This must be printed out and sent by post to the bank.
Especially with online offers an identity check by a bank employee is rather difficult. As a result, you generally need to use the post -ident process for your loan application to compare your ID documents at a post office.
In addition, the Bank will require further documentation, such as proof of income, bank statements, etc., which should be available before the loan application for final examination. Only then can the bank conduct a final credit check. From submitting the documents to processing, you should plan at least three to four days.
How quickly you have the credit for your apartment in the account depends on how exactly the bank illuminates your financial situation. In quick cases, you can count on the money after only five working days, but waiting times of several weeks can also occur.
How long it takes to process the loan can not be stated concretely, as many factors play a role here. Thus, it can be decisive which type of credit has been applied for and how high it is. Especially with high credit sums will be examined more closely. Since relocation does not usually require large sums, you can expect your loan to be paid out quickly.
questions and answers
Can I pay for everything from a moving loan (commission, deposit, new furniture, etc.)?
Yes. Relocation loans are usually ordinary installment loans that are not earmarked. You can therefore decide for yourself what you want to use the money for.
Is the transfer loan available without Private credit?
Yes. You can also request a installment loan without Private credit information. However, you must offer the bank collateral, such as a guarantor or a security transfer. Without a guarantor, it is usually not possible to obtain a loan. In such a case it is best to use a loan without Private credit.
Is a relocation loan a special kind of loan?
No. A relocation loan is an ordinary, non-earmarked installment or consumer loan offered by many institutions.
Are there any differences to a renovation or modernization loan?
Renovation and modernization loans are earmarked, ie the money is linked to a specific use. These loans can be used to renovate and modernize residential property. Modernization loans can also be applied for as state subsidized loans if you increase the housing value or energy efficiency of your home.
Is it better to use zero-percent financing in the furniture store than to take out a cheap loan?
A zero-percent financing sounds tempting, but has its pitfalls. Often it is not possible to revoke the contract or to withdraw from the contract of sale. In addition, there are usually hidden additional costs that are not considered at graduation. Often it makes more sense to apply for a cheap loan, which can also be used in many ways and is not limited to the purchase of an object.
What can I do if the removal costs increase unexpectedly?
If the cost of the move is higher than expected, you should not use your credit line. Instead, it is advisable to ask the bank for an increase in the volume of credit. However, you should consider in advance whether you can carry the higher loan rates at all.
What alternatives are there to the relocation loan?
Before borrowing, consider borrowing money from friends or relatives. This is particularly useful for smaller sums and you may even get your loan interest-free. The advantage here is that this loan is not noted in the Private credit information. A written agreement on the date of disbursement, term and repayment terms should be drawn up in any case. Private loans can also be found via special online platforms.