A foreign loan can be a more attractive alternative to borrowing money at home. In the first place, because a wider range of lenders will be available, allowing a more extensive comparison. The comparison will mainly focus on the level of interest and other conditions. It may happen that one country applies a higher interest rate in comparison with the Netherlands, but it may also be the case that a more favorable interest rate is applied. It may therefore be worthwhile to look across the border for borrowing money.
A few features.
A number of special characteristics of borrowing abroad will be explained below, so that the possibilities in that area become clear.
• Anyone interested in a registration need not in any case think that there will never be any attention for testing abroad, because the testing can also be carried out when applying for these loans.
• The comparison will in any case become easier for the consumer because the banks will use a standard form, in which the conditions and costs are stated.
• Another special feature is that the consumer has the right to repay the loan prematurely. In such a case, the bank does have the option of charging a maximum of 1 percent of the principal for this.
• Another characteristic that is advantageous for the consumer who chooses a foreign loan is that there is a right to cancel the loan within two weeks, the so-called reflection period.
• By using the internet as a useful tool, it is possible to look at the most favorable options.
Taking out a loan can be a solution for financing goods that are temporarily necessary due to unforeseen circumstances. If there is no savings in the bank, there are countless options for borrowing, where a choice can be made from several
forms of credit that are each suitable for a different purpose or purpose of the money. Normally most people only look at the options that lenders offer in their own country, but the option of a foreign loan can certainly be considered.
The reason why borrowing abroad can be more attractive than borrowing at home is that the conditions attached to such a loan can be more favorable. Mind you, may be, it is of course not true that the standard leads to more favorable conditions. One of the advantages may be that the interest rate may be lower than the interest rate for the same type of loan in your own country. Moreover, the range of lenders is becoming wider and it is possible to make even better comparisons.
Points of interest with a foreign loan.
• One of the components of the uniform policy that an attempt has been made to achieve is by using a form for consumers on which a number of things are specified by banks abroad as standard.
• One of the standard parts of the relevant form that is provided when applying for a loan abroad is that the conditions regarding the loan are clearly and clearly described.
• It is also the intention that the form should include the borrowing costs as standard.
• A reflection period of 2 weeks has been agreed for the consumer to give him the opportunity to return to the loan agreement abroad.
• For comparing various lenders and their borrowing options, it is also possible to request multiple bids.
A foreign loan is not nearly integrated enough to be able to say that this option is being used extensively. This is mainly due to the fact that until recently it was very unclear what options there were in terms of borrowing abroad and under what conditions that could possibly be. In this article, extensive attention will therefore be paid to the subject of borrowing abroad.
Why a loan abroad?
Why think abroad if there are so many different options to borrow in your own country? One of the reasons to look at the possibilities for borrowing abroad is that the conditions under which the loan is granted can be more attractive. Of course it will not be worthwhile to borrow abroad in all situations, but it is certainly worth investigating. To give an example of a condition that has a major influence on the total costs that can be associated with a loan, it is possible that a lower interest rate can be applied abroad than at home. On the other hand, it may also happen that interest rates will be higher in a certain country. Furthermore, there is of course the advantage of the internet, which makes it easier to look across the borders for lenders.
• One of the remarkable things that can also give consumers confidence is that it has been agreed at European level that a so-called standard is used when granting loans to residents of other countries. This standard can be found on the form used to provide loans to residents of other countries.
• A number of matters are included in this relevant form that provide clarity about certain aspects. One of those aspects is that it is made clear what conditions are attached to borrowing abroad and the other aspect is that the costs of the credit must be clearly stated.
• For the consumer who has taken out a loan abroad, there is the possibility, on closer inspection, to cancel the agreement during the two-week cooling-off period that is given.
• As the possibility of borrowing abroad is still in its infancy, it is advisable that people are properly informed and advised and, if necessary, request multiple quotes to be able to compare them with each other.
Information about mortgages abroad?
Mortgages are provided on the basis of the income of the applicant and any partner, whereby the home serves as collateral and the value of the home also influences the maximum amount of the mortgage. If one intends to buy a second home abroad or to stay permanently in a home abroad, one will be faced with conditions that apply to mortgages abroad or with applying for mortgages abroad.
When buying a property abroad, you can choose to take out a mortgage in the country where the property is purchased, but you can also make use of the option to choose a Dutch mortgage lender who has the option of a mortgage can bid abroad. Completely different rules apply to taking out a mortgage abroad and the possibilities of a mortgage type are often more limited. This is also the reason that many people who are looking for mortgages for a home abroad go to the mortgage providers in the Netherlands.
Characteristics of these mortgages.
Since there are a number of differences to note for a mortgage on real estate in the Netherlands or real estate abroad, a number of characteristics of mortgages for foreign countries will be mentioned below.
• One of the characteristics of providing mortgages for abroad is that there must generally be Dutch income on the basis of which the mortgage can be calculated for abroad.
• When granting mortgages for a foreign country, mortgages are often granted only up to a maximum percentage of the appraisal value of the foreign home.
• The introduction of own money is therefore often a requirement, although depending on the situation, there may always be exceptions that need to be assessed for each individual case.
• Another characteristic of mortgages for residential properties abroad is that there must also be a minimum amount with regard to the mortgage amount to be provided.
• There are various providers active in the field of mortgages that are provided for homes abroad, so that it can be worthwhile to compare them with each other.
Looking for a mortgage for a home.
When buying a home abroad as a first home with the intention of moving or as a second home with the aim of making it into a holiday home, one will have to look for a mortgage for financing. Now there are various options for obtaining a mortgage through both a Dutch mortgage lender and mortgage providers located abroad. Each country has its own regulations with regard to the granting of mortgages and it is therefore always advisable to ask for expert advice.
A distinction can therefore be made between a mortgage taken out in the Netherlands and a mortgage taken out abroad. In order to obtain a mortgage for a home abroad, an income requirement must first be met. When purchasing a second home as a holiday home, you can also use the surplus value on the owner-occupied home in the Netherlands. Not all mortgage providers are willing to offer a mortgage for a home abroad, so they will have to look for a mortgage provider that is focused on providing this.
Characteristics of a foreign mortgage.
To provide some insight into the possibilities with regard to obtaining a mortgage for a property abroad, a few characteristics and points for attention will be explained below.
• To obtain a mortgage for abroad, Dutch mortgage lenders often make it a condition that the borrower is resident in the Netherlands. This would therefore mean that only people who intend to purchase a second home are eligible for such a mortgage.
• If one intends to emigrate abroad, it will in any case become more difficult to obtain a mortgage for a home abroad from the Netherlands.
• In such a situation, it may be considered to take out a mortgage in the country itself, although it must be realized that in certain countries a mortgage will often be provided only up to a certain percentage of the foreclosure value of the home. Own resources are therefore often required.
• Even with a foreign mortgage, it is advisable to make a comparison between the various providers on the type of mortgage, the interest and the other conditions.