Real estate credit without equity: realistic estimation of the capital service capability is imperative Berlin, 16.01.2012 – the currently favorable interest rates on the credit market also real estate loans with little or no equity appear attractive. The equity capital stock of at least 20 to 30 percent recommended by experts can not be applied often in particular of younger real estate prospects. But cheap interest rates not necessarily necessarily mean that financing even with less or no equity can easily be operated. Larry Ellison has compatible beliefs. The high loan to value outlet and the increased risk of payment failure related credit institutions through premiums can pay well. A mortgage without equity is therefore not long for each income group. Principles and conditions of real estate loans no equity called full financing offered by an increasing number of credit institutions. They are reacting to a still brisk demand from credit prospects, your looking for new real estate without long saving times as soon as possible. Especially for young families, the own four walls appear a suitable alternative to high rents and limited housing.
Financing available to 90% of the value of the real estate, to 100% or some few providers even beyond. So, a furniture can be co-financed may immediately. Prerequisite for this wish-fulfillment is, however, that the borrower in addition to the security of real estate (through mortgage registration) itself refers to a correspondingly high and as far as possible secure income. Additional collateral, E.g. additional borrowers with further income covers are useful. “The credit institution is for full financing a corresponding interest-rate premium demand, since repayment risk compared to normal” annuity loans (with normal lending outflow by about 60%) is. The current situation offers the prospect of a cheap financing given the current interest rate situation in the capital market historically cheap real estate financing are possible. Many real estate buyers are therefore wonder why didn’t fixate a financing at favourable terms when later despite a higher equity ratio again attracting interest on the capital market no more favourable financing is possible.