DATE: October 8, 2019
Plain: Who wants to buy a house in the future, needs a high salary or much equity to get a bank loan. As a main argument for the creditworthiness can no longer be considered the assumption of an increase in value of the property. The first customers are no longer receiving loans from their bank, long-term customers may. Only in exceptional cases contracts should be settled, otherwise the banks would no longer find lenders. German banks should have started to reduce their lending much earlier.
The directive could mean that tens of thousands, if not hundreds, of Germans are no longer able to pay for a house or its renovation with a loan. That’s exactly what people in banking circles fear. The federal government has largely transposed the ordinance unnoticed by the population. The aim of the law, which has been in force since the end of February, is certainly honorable.
However, experts have massively criticized the new law: For individual sections of the population, the granting of loans has since become more difficult, complains the GDS (BVR). In the ST it was analyzed that the directive “means that many people are no longer able to finance the intended house or its refurbishment”. Problematic: According to Schmergal, banks are only allowed to conclude a private real estate loan since the end of March on the condition that “the borrower does not fulfill his contractual obligations.
In this way, the legislature deprives the banks of the room for maneuver – with detriment for the consumer. When lending, financial institutions can no longer rely significantly on the value of the property to exceed the loan amount – as has sometimes been the case in the past. Therefore, even if it is obvious that the amount of the holiday home or apartment in case of foreclosure exceeds the amount of the loan to be repaid, the house bank may not only grant the loan.
Simply put, if you want to buy a home in the future, you need a higher income or a lot of equity to get a loan. In addition, the presumption of an increase in the value of the property can no longer be regarded as a significant argument for the creditworthiness. The Chairman of the Bavarian Cooperative Association, Dr. Ing. med. Jürgen Gros, has recently criticized in the “Bayerische Staatszeitung” that consumer associations, in particular, although they had real estate, but had only a low current income, give up the credit rating by the new law.
It could, however, “possibly contribute to banks being unable to meet economically justified customer requirements in certain situations”. Ergo: Money houses can lend to fewer people than in the past. “Under the new law, a client must always be in the position to repay a loan without considering the value of the property.
If, for example, the loan can not be repaid within the legal life, the house bank must reject a loan application for an age-appropriate conversion of the residential property. Especially for older people is “repatriation of the loan – without the use of matter – often not possible,” says Schmergal. 3. In the opinion of the Federal Association of German Bausparkassen (BVR), it is also becoming more difficult for the young host families to receive home loans because “the requirements for the credit check were significantly increased.
“The” Special Economic Zone “also points out that the financiers have imposed the obstacles to raising money under the law. “This is especially true for the young families.” Studies show that almost every second German citizen is in his own possession. This may be different in Austria: the European directive has been implemented there in a much more consumer-friendly way, says the president of the savings bank association Bayer.
The young host families, in their assessment, are often unable to demonstrate “undisputed debt service”. In an interview with the company, the private bank has created the BÃ “created by the law. By contrast, the Association of German Banks, which represents private banks, considers it too early to judge whether the law “worsens credit quality”.
Federal Ministry of Justice: “Exclusion of pensioners and low-income earners not intended” The Federal Ministry of Justice now establishes the law: “The exclusion of older people, relatives or persons with low earnings from the lending is neither required nor desired by the regulation or by the implementing law , “For the Federal Ministry of Justice is clear:” The granting of credit is possible, as long as these consumers in the contractual form can repay the loan from their income.
And also on HuffPost: Wherever in the world: Without education, there are usually no opportunities for needy people. Many orphans from socially deprived areas have no one who can take care of their daily worries.
As part of the project Lichtlick Hasenberg in Munich, educators promote young people in all these things. Find out more about the action here. 400,000 children in Rwanda have no chance of finding a place to go to school, especially orphans and schoolgirls are particularly affected.
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