Home loan – what are the options, does the loan pay off from the state?
Do you long to improve the quality of your housing? If you have saved enough, it is not complicated. But not everyone can take pride in having enough money. Then only the loan comes into consideration. The one designed for housing can take many different forms. What specifically can they be? Take a look with us.
A clear and most popular option for anyone who wants to take their new home truly literally out of grunt. The advantages of a mortgage are certainly that it can offer millions of crowns, with a fairly favorable, ie low, interest rate. Of course there are also really extensive opportunities to use this loan. This includes:
- Building your own house
- Buying a house or apartment
- Reconstruction of real estate
A small disadvantage may be that the mortgage is indebted even for several decades ahead. It is also necessary to bear in mind that you cannot do without your own property. It is necessary to guarantee the property, not only the current one, but also the property that you are planning to build. On the other hand, the advantage of a mortgage is that the interest paid can be deducted from taxes. Any overpayment of the loan will not be as striking as it may seem.
In the segment where it is possible to raise millions of crowns to fulfill big dreams, it is still necessary to stay. And because another interesting option is the so-called American mortgage. It differs from the classic one important thing. We are talking about a loan that is not purpose-built. So it is up to you what you use the money for. It can be expected that these will be the same things as in the previous case. However, this type of loan is not associated with the need to present invoices and other documents proving spending money.
What is the same is the offer of available amounts, possible due dates, as well as low interest rates – although they may be slightly higher. The same are the conditions of acquisition, which are associated primarily with the need to guarantee specific real estate. In this case, only the existing one. Not a family house that you are just planning to build. And what can be specifically guaranteed? You need to:
- Apartment or house
- Vacation Property
- Commercial building
Non-purpose consumer loan
We will remain with the possibility of financing housing with non-purpose loans. This time we look at the variant, which is a non-purpose consumer loan. It is one of the most common products in the loan market and is provided in three different segments. These are:
- Bank loans
- Non-bank loans
- P2P loans
So there is really something to choose from. If we are to be more specific with regard to how much we can get, we are talking about tens and hundreds of thousands, somewhere even millions. And whatever. Although interest rates are higher than mortgages, we can still talk about the value of units of percent. What is this type of loan also associated with, these are the possibilities of easier obtaining money. Mainly because there is no need to guarantee anything and the main word here is the amount of income. The higher it is, the more funds can be raised.
Special-purpose consumer loan
Just as mortgages are divided into two categories, consumer loans are also divided. The name of this particular clearly shows what its characteristic is. It is a loan where the applicant is not only limited by what he / she can use the money for, but also has to prove the subsequent use of the money. For example, through invoices and other documents. The positive thing is certainly that when we talk about the possibilities of use, they are quite diverse. This can be the same as in the case of a mortgage, to which is also added the possibility that all equipment can be purchased, from furniture to appliances.
Who would hesitate between a special-purpose loan and a non-purpose loan, it must be said that while it is more complicated in terms of documenting the use, on the other hand, one cannot forget the main plus, chances of positive approval of the application. If you are clear about what you want to buy in your home for the money you make, it may seem an ideal choice. Especially in cases where you do not make adjustments by yourself, but through a company or sole trader, from whom you will receive a proof that you can easily prove the use of the money.
It is clear that, given the characteristics of this loan, you cannot even talk about building a property for it, yes, that you would reconstruct it. Still, there are situations where it can come in handy. Its unique feature is that it will offer units, sometimes tens of thousands. And quite quickly, and for a shorter time. It may be useful in situations where it is necessary to buy only one thing for a household that would make it unnecessary to borrow for several months with a classic consumer loan. Among the applications we can include, for example, the purchase of appliances, the purchase of simple furniture, as well as various repairs of appliances.
It is only suitable to take it in situations where you know that you can manage to return it without any problems. If not, it’s definitely not ideal to risk problems. Just because in its classic form it can seem quite disadvantageous. But it has its other side, associated with the fact that in this category is available free loan. For those who want to get something from the next paycheck, but currently can take advantage of the advantageous action, this form is perfect. Otherwise, be cautious, as it may not be ideal in many cases.
Loan for housing from the state for 2018
Many may still remember the so-called newlywed loans. An option that was intended mainly for young people who want to become independent and start a family. The state will offer something similar now. From 15.8. it will be possible to apply for a loan from the State Housing Development Fund, or SFRB. A total of up to CZK 650,000,000 will be available.
There are clearly defined conditions attached to this loan. The loan is intended only for young families with a maximum age of 36 years. If it is not a spouse, it is a condition that the child must have a common child (or already had it at the time of the loan application) within 6 years. It is a special-purpose loan that can be used to renovate existing or purchase new housing. The repayment period is set at 20 years, but in exceptional cases it is possible to extend it up to 25 years. And the amount? It will correspond to the use of:
- Reconstruction – maximum 300 000 CZK
- Purchase of housing – maximum 1 200 000 CZK
- Housing construction – maximum 2 000 000 CZK