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A variant of a loan is the Realkredit, In contrast to traditional lending by hedging by means of the monthly income, this kind of credit is used as collateral as a collateral. Thus, even borrowers with insufficient creditworthiness or a negative schufa can come to a loan.
What characterizes a realkredit?
As a rule, real estate owners apply for a long-term realkredit in order to be able to carry out redevelopments or renovations at their house or their own home. As a real asset or pledge, the property can be used in the form of a mortgage or the land charge. However, the real loan can also be used to increase current liquidity.
The interest rate can either be variable or fixed. The credit limit is usually 60 percent of the value of the loaned object. In the case of a realkreditsplitting, a higher borrowing limit can also be applied individually.
What is Realkreditsplitting?
A splitting of the re-credit is always necessary if the credit limit is above the usual 60 percent and thus a significantly better risk classification is required. In practice, a distinction is made between real and non-genuine real-loan exposures.
The real real credit splitting
A total of 2 credits, a so-called real-estate credit note, and a credit secured by the land register entry are concluded. The total credit is thus "split" into two parts, ie divided.
The spurious realkredit splitting
In the case of a non - genuine rebate loan, a part is settled through a normal realkredit with the 60 - per - cent borrowing limit; personal loan obtained. In the case of this lending, all conditions are only concluded through a credit agreement.
In order to obtain a realkredit, the borrower must turn to certain credit institutions, since not every financial institution grants a real loan.
Who offers a realkredit?
If you want to record a real loan, you will find that not every bank offers this form of credit. In addition to special re-credit institutions, the following companies also have the possibility to award this special credit.
These include savings banks, cooperative banks, building societies and commercial banks. Before completing the loan, you should be informed about the different conditions. This can save you money.
What conditions must be met by the borrower?
In order to obtain a credit secured by means of material assets, certain prerequisites must be fulfilled:
- The credit company must have the license in order to be able to place real-estate loans, ie a real estate-based loan.
- The value of the property must be assessed by an independent expert by documenting and evaluating the current market value and the desired market value collateral value respectively.
- The market value of the property must be checked at regular intervals throughout the term of the loan. The legislature stipulates that in the case of a private credit granted privately, the check must be carried out at a maximum of three years, in the case of commercial loans, even within 12 months.
- The borrower must have insured his property sufficiently high for the damage caused by a special building insurance.
- The lender must also be able to legally enforce the material value in case of an emergency.
Realkredit can be a good way to borrow money for long periods without sufficient creditworthiness or sufficient monthly income. The downside is that this form of credit is only for property owners. If the living conditions change and you can not meet your payment obligations on time, you can lose your property to the lender. Therefore the conclusion of a Realkredit should be well considered.