Debt restructuring costs – good offer to your old loan

Quickly, rescheduling on a cheap loan can actually cost more than it should save due to the prepayment penalty. Debt rescheduling a loan can be a few thousand dollars cheaper with a good offer than keeping the old loan. Many borrowers switch to another bank and take out a new loan there. This new loan, with cheaper interest rates, is supposed to bring the hoped-for benefit and relief of finances. But it is also important to compare exactly when converting to a new loan and to know the conditions.

 

Contractual or early termination of the loan

Contractual or early termination of the loan

Because the old loan can only be rescheduled if the conditions for termination are met. The provisions for the termination of the old loan are laid down in the credit contract and, in this respect, the termination can only be made according to these contractual rules. The successful termination of the old loan is one thing that has to be mastered. Another is that banks do not have to release the loan before the time limit is fixed. Whether the bank releases the loan for debt restructuring usually differs from bank to bank, but mostly the banks are so accommodating and do so. However, unless otherwise stipulated in the contract, the bank can claim compensation, the prepayment penalty. Due to the premature termination, the bank loses money in the form of interest.

 

Prepayment penalty: active-active and active-passive comparison

The bank can choose between two methods of calculating the prepayment penalty, which is due if the loan is canceled early. These are the active-active comparison and the active-passive comparison. The Federal Court of Justice has been offering banks this option since 1997.

In the active-active comparison, the bank is assumed to lend the money that it now receives back to another customer as a loan. In the active-active comparison, the prepayment penalty comes from the interest margin damage and the interest rate deterioration damage. The latter reduces the damage suffered by the bank or can even compensate for it if interest rates for reinvestment have fallen. The interest margin damage compensates for the profit that the bank has missed.

If the bank chooses the asset-liability comparison, it can calculate the prepayment penalty, even if the interest rate level has remained unchanged or may even have increased. In the asset-liability comparison, the money that now flows back prematurely is invested in the secured capital market paper.

 

Transparency for the borrower

Prepayment penalty: active-active and active-passive comparison

Whatever the basis for the prepayment penalty, the bank must list and document all parameters that are included in the calculation. This makes this often complex process more transparent for the borrower and he can lodge an objection in the event of an eventuality. If the bank’s prepayment penalty turns out to be too high, the borrower can plead for reimbursement. This right also applies to old cases of prepayment penalties.

 

Allow special repayment rights as a borrower!

So that something like a prepayment penalty does not fall due for early termination or at least limit the amount, the borrower must be granted a right to make special repayments. This right to free special payments is also recorded in the loan agreement. This right also gives more flexibility with regard to the repayment of the loan and in the event of early repayment of the loan amount, the bank cannot grant an excessive prepayment penalty.

What is a credit card?

 

Description of the credit card and its characteristics

Description of the credit card and its characteristics

A credit card is a payment card whose payments are only debited after a certain time from an account determined by the customer.

There are traditionally three types of credit cards:

1. the »deferred debit« card

1. the »deferred debit« card

which allows the purchase of goods and various transactions, but the payment of which is deferred one month later and without debit interest.

For example: the classic Visa card offered by banks.

2. the card accompanied by a payment credit opening

2. the card accompanied by a payment credit opening

staggered, also called “revolving” credit, which allows the purchase of goods and various transactions. Payment is not only deferred, but also split monthly with a minimum monthly amount to be reimbursed (for example 5% of purchases).
Debit interest is calculated on the monthly debit balance.

3. the “flow-through” card

3. the "flow-through" card

which combines the payment function and the deferred debit function, but which is offered and linked to a commercial brand or a particular distribution chain. Example: store card, in the supermarket sector.

These cards have one common characteristic, namely that:

each month, the customer receives a statement of expenditure giving an overview of all payments made using the credit card;

then, the total or partial amount of the expenses is either debited by direct debit, or paid by the customer directly and voluntarily, possibly taking into account a minimum contractual amount. Since the financial institution bears the risk of non-payment of cash withdrawals and expenses made with the credit card, the solvency of the client must be assessed.

The lender may refuse to issue a credit card when it is not certain that the future card holder will comply with the agreed terms. Any credit card is generally subject to a monthly spending limit, the amount of which can be adapted to the client’s profile.

The credit card linked to a current account allows a customer to make purchases or withdraw money from all over the world.

Cash withdrawals are subject to a higher rate than transactions made at a merchant

The customer can make cash withdrawals with cards linked to a current account at:

The customer can make cash withdrawals with cards linked to a current account at:

  • vending machines in Belgium and abroad;
  • ATMs of banks and exchange offices.

Confirmation of payment or withdrawal of money is made on the basis of:

Confirmation of payment or withdrawal of money is made on the basis of:

  • the signature of the card holder;
  • introduction of the PIN code by the card holder;
  • or any means of electronic identification.

Two new card reading techniques allow electronic identification:

  • contactless / contactless payments;
  • payments by mobile device.

Some terminals in Belgium are already “contactless / contactless” and foreign cards with this feature enabled can therefore make a payment in this way.

The expenses and transactions carried out by means of bank credit cards in our country are, for the most part, fully debited by direct debit on a monthly basis.

In recent years, the type of credit card with an opening of credit (opening of payment in installments, revolving credit or revolving credit described above) has gained importance. Different institutions offer these cards, including various distribution chains.

The purchase of more expensive consumer goods can thus be reimbursed in installments.

The credit card, of the “deferred debit card” type, is not subject to legislation, provided that it is a “credit”:

  • without interest ;
  • reimbursable within a maximum of 2 months;
  • for which the lender requests fees lower than a certain amount (4.17 dollars per month, indexed, basic index: December 2010).

Credit immo: 5 tips to reduce the cost of your financing

 

There is no point in trying to negotiate the interest rate on your mortgage with the lending bank if the total amount of your additional costs is prohibitive. Discover 5 tips allowing you to benefit from the best conditions for your mortgage.

With a rate of less than 3% for a repayment term of 20 years, mortgage rates have never been at such a low level. If you have a real estate project, now is a good time to make it happen. But you must be vigilant when negotiating your loan with the bank: do not fix your attention only on the nominal rate because the real cost of the loan depends on the Effective Total Rate (TEG). This includes all the costs of setting up your credit, which you need to study closely because these can save you a significant amount.

1 – Reduce administrative costs

1 - Reduce administrative costs

When you meet your bank advisor, he will perform various simulations depending on your profile. If you are a good customer (employee, with all of your bank accounts domiciled in the bank, presenting no aggravated health problem, etc.), the preparation of your file will be easy. You can then negotiate a reduction in the amount of the application fees. Going through a broker, it is to him that you pay the administrative fees: you therefore have nothing to pay to the bank. You can also negotiate the file fees with the broker if your file is easy to assemble.

2 – Negotiate the price of insurance

When you take out a home loan, you must also take out borrower insurance to cover yourself against the risks of death, disability and incapacity for work. This insurance provides the bank with a guarantee that the monthly installments will be reimbursed, even in the event of financial difficulties following a disaster. You can take out cheaper loan insurance than that of your bank, on the condition that the outsourced contract (delegation of insurance) is at least equivalent guaranteed.

According to Hamon law, if you have taken out a loan since July 28, you can replace your insurance contract within one year of taking out it. To do this, send yourself a letter informing your banker that you wish to set up another contract at least 15 days before the end of your first year of coverage.

Thanks to this possibility, you can make substantial savings, especially if you are young. You can indeed save up to 20,000 dollars on the overall cost of your mortgage by negotiating your credit insurance.

3 – Negotiate additional services

3 - Negotiate additional services

You are unable to sell your banker and wish to benefit better. Concentrate on ancillary services. Your banker will be delighted to have you take out, alongside your mortgage, a home insurance contract to insure your house or apartment. Also tell them that you are ready to save with their bank by finding out about current savings products such as the passbook A or PEL. This way you will get a commercial gesture from him on your mortgage.

4 – Beware of prepayment penalties

4 - Beware of prepayment penalties

If you sell your property in order to move to live elsewhere, or to become the owner of a larger dwelling, you will have to pay the bank prepayment penalties. Their amount amounts to 3% of the capital remaining due, with a ceiling of 6 months of interest. It is quite possible to negotiate or even cancel them in case of resale of the property to buy another. Do not forget to request a modification on this point in your credit agreement before signing it.

5 – Check the transferability of the credit

Remember to check that your loan is transferable because it allows you to save later, by benefiting from lower rates on your future acquisitions. If you buy another home a few years later, after selling the first property related to your loan, you can transfer your loan to buy a new home. You will only have to borrow the missing amount.

Borrow money to renovate: save energy and money

Did you know that you can easily save money?

Did you know that you can easily save money?

By sealing cracks and joints in your house with windbreak strips, for example, you can quickly earn $ 25 a year. By taking two minutes less shower, you will earn $ 40 per person per year. Replacing incandescent lamps with energy efficient lamps saves around 60 dollars. By lowering the stove by one degree, you can even earn $ 80 a year. You don’t have to do or leave a lot for this, but on an annual basis, you have a good amount left. You can also make it bigger!

If you want to save more than a few dozen, it’s worth investing in your home. If you make your home more energy efficient, you will see it directly on your energy bill. An average family spends around 200 dollars per month on gas, water and electricity. Insulating the ground floor allows this family to save around $ 160 per year. Replacing simple glazing with energy-efficient glazing saves even more. This allows to obtain up to 250 $ per year. Read our tips for saving money sustainably.

Renovate your home

Renovate your home

Of course, it costs money to renovate your home. But investing in your home pays off, if only for the value of your home. You do not have the (total) amount available for the renovation? So borrowing money can be a good option. If the savings on your energy bill are greater than the monthly loan amount, your investment will immediately earn you money on a monthly basis!

A home improvement loan is usually less expensive than an additional mortgage. This means that you do not have to pay any fees to contract a loan, advice, notary or expertise when you take out a loan. The duration of a loan can also be easily adapted to your loan objective. This means that you are not yet paying off your home insulation loan when you are already ready to move out. If you opt for a personal loan, you will be entitled to a tax benefit. The interest on your personal loan used to renovate your home is tax deductible.

Credit broker Huy, online credit Belgium

Personal credit simulation, credit consolidation

Personal credit simulation, credit consolidation

Choose the amount ($) with the zipper, and then click on “Simulate” Other amounts Simulate

Binary Lender ® is a credit company specializing in online credit. We have been active in Belgium, mainly in Wallonia, in Modave near Huy, in the Province of Liège and in all the other French-speaking provinces of the country such as Namur, Hainaut, Brabant Wallon and Luxembourg since 2001. As a broker in credit, we will make you travel throughout your visit to the world of lending. Credit will no longer hold any secrets for you!

Credit broker at your service

Credit broker at your service

Our advisers are at your disposal to guide you as best as possible in your efforts. We take our work as a credit broker very seriously, your satisfaction is our main priority.

Online Credit Company

Online Credit Company

Our loan experience has allowed us to forge close ties with our partners. To satisfy you, we have rigorously selected the online credit organizations with which we collaborate. Our knowledge of the market allows us to find a solution adapted to most credit requests.

Your file will be treated confidentially and your personal data will not be communicated to any other company except the companies where your online credit request will be sent.

Do not hesitate to contact us in order to obtain more information on our company, you can also carry out various simulations including the personal loan simulation.

Insurance broker

Insurance broker

Binary Lender is not only a credit broker, the company is also active as an insurance broker. We can offer you any property and casualty product such as car insurance, fire insurance, family insurance, hospitalization insurance, car assistance, etc. Contact us for more information.

Real estate loan Belgium

Real estate loan Belgium

Through our pages, you can also find out everything you need to know about mortgage in Belgium. You will find an explanatory page on mortgage credit and a page where you can perform a mortgage credit simulation. If you have any questions about our job as a credit broker, contact us!

 Redeem your credit with a mortgage loan buyout

 

If you have a mortgage and are considering negotiating it or having better rates, this is the option for you. It is a formula dedicated to the repurchase of mortgage loan.

Mortgage buyback process

Mortgage buyback process

With Finday, you have the option to redeem your loans, especially mortgages. To do this, you must contract a new formula intended to lighten your charges. This is a buyout offer to decrease your repayments. Indeed, too high monthly payments with high rates often pushes you to find yourself in the red. By choosing a mortgage buy-back offer, you will solve all of these problems, including paying only ONE monthly payment and ONE rate.

We will therefore study together the issue of redemption and discuss your interests. We will proceed by an analysis of your financial statement and your means of reimbursement. Then, we will do a thorough study on the possibilities of repurchases of your loans. We will deduce from this whether it is profitable for you to buy back all your credits or whether it is necessary to find another solution. Since a redemption will generate many costs, consolidating all the credits with a single organization prevents you from over-indebtedness. It also allows you to save money. Advice from a broker will help you make the right choice.

Frequently asked questions about buying back a mortgage

Frequently asked questions about buying back a mortgage

  1. When to use a credit buy-back?

    If you are starting to experience difficulties in paying off your receivables, it may be time to think about a loan buyout. This, in order to avoid delicate financial situations and even the filing with the BNB.

    The repurchase or regrouping of the loans can make it possible to reduce the total amount of the monthly charges and this, by authorizing to repay the loan over a longer duration.

  2. What is the response time?

    As soon as we receive information from the borrower and details of the various loans in progress, we can already issue an opinion on the feasibility of the file.

    If it is favorable, we immediately transmit it to the banking organizations with which we work so that they analyze the financial situation of the borrower.

    If all the information provided is correct, the response to the credit request can often be made during the day.

  3. Is the interest rate fixed?

    In the event of repurchase of credit composed only of personal loans, the rate is fixed.

    In the case of a redemption with a mortgage loan and possibly one or more personal loans, the rate can be fixed, semi-fixed or variable. This will depend on the choice of the borrower on the type of rate he wants for his new credit.

  4. Is it necessary to have several credits in progress to be able to carry out a regrouping?

    No, even with a single loan, you can completely request a redemption or a grouping of loans.

  5. Can we buy back a credit union?

    After analyzing the request and if it is possible, it is of course possible to buy back a loan that has already been bought.

  6. What are the conditions for submitting a mortgage loan redemption request?

    At least have a current loan, whether personal or mortgage. And have a financial situation that meets the conditions requested by the banking organizations with which we collaborate.

  7. How do I get the full details of all my loans?

    If you can no longer find your different credit contracts, you can know the details for free via 3 ways:

    • Do you have an EID ID card reader? So take your identity card and your reader and go to the website of the Central Credits for Individuals
    • by going to the BNB branch nearest to you
    • by requesting the consultation of your data by post, accompanied by a double-sided copy of your identity card. 
  8. Do I have to have a current mortgage loan to buy back?

    No, if there is no mortgage to buy back, you can definitely ask for a personal loan redemption. This repurchase is also called credit consolidation.

  9. Who takes care of contacting the banking organizations and closing the credits in progress?

    In the event of repurchase of mortgage loan, it is the notary who will take care of contacting and closing the mortgage in progress thanks to the funds released by the new lender.

    In case of repurchase of personal loan (s), we take care of everything! Among other things, to contact banking organizations and to settle credits.

  10. What is the difference between redemption and credit consolidation?

    There is none, redemption and consolidation both have the same operating principle, that is to say that we buy the loan (s) in progress whether personal or mortgage.

Real estate loan for retirees

Are you retired or approaching retirement age and planning to borrow to buy real estate? Discover the essential information on the mortgage for retirees.

Apply for a home loan when you are retired

Apply for a home loan when you are retired

If it was previously complicated to be granted a loan while you are retired, it is now rarer for retirees or people over 60 to access the mortgage, with long-term financing term. Banking establishments are in fact less reluctant to lend money to seniors because of their quality of life, the financial wealth they have, as well as the increase in life expectancy.

With regard to shorter repayment credits, consumer loan organizations agree to lend to retired people because only small amounts are involved. You should also know that retirees want reassuring loan applicants for banks and financial organizations because they have a certain stability, both in terms of finance and life. They are not exposed to the risk of unemployment and dismissal (logical since they no longer work) and generally have real estate and movable assets. However, this does not mean that getting a real estate loan for retirees is easy!

When simulating a home loan, the retiree should know that the bank will look at his age at the end of the term. And it is rather rare that the repayment of a mortgage does not exceed an age of 80 or 85 years, knowing that a mortgage has a duration spanning an average of 15 years. Young retirees want to be the best candidates for long-term loans.

Apply for loan insurance

Apply for loan insurance

What creates the difference between two people applying for a real estate loan for retirees is their state of health, and consequently the cost of mortgage borrower insurance can be as high as the cost of the loan itself. And the more risky the state of health of the borrower, the higher the amount of the premiums.

You should know that the amount of borrower insurance is calculated from the health questionnaire that you complete when you apply for death insurance to guarantee the mortgage for retirees. It is recommended not to hide anything: the medical advisers conscientiously study each file and, in the event of erroneous declaration, you risk losing everything benefits from the insurance.

For an elderly person whose health comes to pose problems but who wishes to borrow, there are certain solutions, under the condition of having an inheritance: the mortgage life loan and the guaranteed mortgage loan.

The mortgage life loan provides access to the bank loan. The sum is lent in the form of an annuity or principal, and the guarantee put in place is a mortgage on real estate.

The guaranteed mortgage loan allows a loan in the form of capital or annuity. The loan cannot exceed 70% of the value of the property placed on the mortgage and can be repaid in monthly installments. It is covered by a double guarantee: the mortgage and the deposit.

You can therefore look for the retirement home loan that suits you best and thus access the loan to make your real estate project a reality. Do not hesitate to contact a broker to get help and to benefit from the best borrowing conditions.

Is it possible to get private loans without property?

Obtaining a loan is a complicated task since financial institutions put many obstacles to obtain it, as we all know, there is a crisis situation that has caused banks to refuse to provide loans to their clients with the same ease as before; These must meet a large number of requirements and conditions so that the user finally receives the money he needs. Given this situation, a series of private equity companies have emerged that provide private loans, if you want to apply for one of these financial aids, you need to have a property that guarantees the loan, in some critical cases, there are no real estate assets either. that guarantee the loan Is it possible to get private loans without property?

Check other lender companies offers

Check other lender companies offers

Depending on each company, one or other conditions are offered. In the case of our company, we can provide private loans to our clients with the only guarantee of a guarantee, this can be real property or not, which means that the client can guarantee his loan with almost any type of object. Our users can guarantee their private capital credits with real estate, vehicles, art collections, taxi licenses, etc. almost everything works, the only exception is jewelry.

This entails the fact that the user can qualify for a private equity loan without the need for real estate. We are going to grant you up to 20% of the value of the guarantee, for this, the quality of the guarantee must be optimal.

If you have real estate, these must meet a very important condition to be guarantees of our credits. Real estate must be free of charges and mortgages, flats, houses, premises, etc. may be valid. We do not accept plots, plots, warehouses, etc. since these goods are too subject to variations in their prices and therefore are not acceptable guarantees.

Team of private lenders

Team of private lenders

Our company is made up of a team of private and private lenders, we have extensive knowledge of financial and real estate issues, this enables us to provide clients with all the assistance they need and to be able to deal with as many aspects as possible. In this way, we can speed up the procedures and the client will obtain their money in the shortest possible time, this liquidity can be had in less than 72 hours, provided that we have received the necessary documents in our offices.

We offer all kinds of facilities to pay our private capital loans; quotas can be met in monthly, quarterly, semi-annual or annual installments. We adapt to the specific needs of each user; Among other advantages, we offer credits even to people who are in difficult economic situations, such as unemployment or late payment.

What’s in a private loan?

What

Our private loans are absolutely legal and are regulated by the Ministry of Health and Consumption; The agreements are signed before a notary and are carried out anywhere in the national territory, without the need for the client to travel.

In conclusion, our company offers private loans without real estate, there are many options to guarantee the credit and if you need cash, this is the best opportunity to get it in a short time and with guarantees.

Renovation loan for work on your home

Renovate, transform or enlarge your property via a contractor while taking advantage of an advantageous rate, it’s possible! The renovation credit allows you not to touch your savings and offers many advantages. We will detail the conditions required to be able to benefit from it.

In which cases is the loan of works advised?

In which cases is the loan of works advised?

This type of installment loan is ideal if you want to renovate or transform your home.

For example, you can use it to enlarge your house, carry out painting work, renovate your kitchen, install a new bathroom, equip yourself with an alarm system, arrange your garden or even build a veranda or a swimming pool. …

However, you cannot use it if:

  • You do not own the property to renovate
  • You want to do the work alone (without going through a contractor)

The advantages of a renovation loan

The advantages of a renovation loan

The work loan is much more flexible than mortgage credit:

  • You receive a quick decision
  • Funds are available 48 hours after signing the credit contract
  • The rate is fixed and advantageous: you therefore repay the same monthly payment every month
  • You must neither hire a notary nor waive mortgage guarantees
  • No expertise is required either before or after completion of the work

The conditions of the works credit

The conditions of the works credit

You will be asked to collect the various quotes or purchase orders received by the contractors you met in charge of the work to be done.

The amount of the loan for your renovations and alterations must be at least $ 1,500. The duration of the credit can range from 6 months to 120 months.

Regardless of the amount or duration of the loan, you will always benefit from a fixed prime rate of 2.94%.

To perform a non-binding simulation, use our credit simulation tool for your renovations. You can then submit your request online via our credit form to receive a quick response and carry out your projects.

Fast loan: Funding in less than 48 hours and in 4 steps!

Need immediate money? Using a consumer loan is recommended to benefit from funds to finance the purchase of goods or services. However, applying for a loan from a bank or financial institution often takes several days. What to do ? For an urgent need for money, most online financial organizations offer quick loans without proof. This is a great way to solve your financial problems quickly. In addition, this form of borrowing is obtained in less than 48 hours. How to do ? Details!

1. Compare fast credit offers without proof online

1. Compare fast credit offers without proof online

This type of loan is classified under the credit for small income. Indeed, for individuals with limited income, it is an ideal means of immediate financing. To know that this loan offer is easy to find today. On the internet, several fast credit proposals in less than 48 hours are available. You just have to choose the ideal offer. For this, it is necessary to go through the comparison of all these propositions. Indeed, comparing allows you to find the best offer adapted to your situation. If you want fast credit without proof and in less than 48 hours, you must use an online comparator. This tool makes it possible to come across an excellent proposal.

2.Have an ideal debt ratio for a deal in 48 hours

2.Have an ideal debt ratio for a deal in 48 hours

Getting a quick loan agreement without proof is quite simple. All you need is a good borrower profile. Moreover, the debt ratio is a determining factor in his situation as a trusted borrower. By proving to banks and financial institutions that you are able to repay the quick loan, a positive agreement is obtained. With a debt ratio below 33%, you can easily put financial institutions at ease. So getting a loan in less than 48 hours is easy.

3. Find the advantageous rate for your fast credit without proof

3. Find the advantageous rate for your fast credit without proof

For cheap immediate credit, finding the ideal rate is essential. You should know that each fast loan proposal and without proof online differs in terms of interest rate. In this regard, considering this point is essential to find cheap credit. You can actually use the interest rate of each offer as a criterion for choosing the best quick loan without proof. Be aware that using an online loan comparator is useful and effective in finding the cheap rate. In addition to helping to find a credit offer in less than 48 hours, this device is also practical for evaluating rates and comparing.

4. Make your immediate credit request in less than 48 hours

4. Make your immediate credit request in less than 48 hours

Fast credit without online proof is a form of consumer loan currently used by many households. To solve an immediate lack of funds problem, this is the best solution. These individuals all go online to apply for credit without proof in less than 48 hours. Indeed, you can make it easier to apply for a loan by going online. Guaranteed time savings without leaving your home!