Have you finally got a home or apartment in place but are missing some money so you can afford the expensive deposit deposit? Then you can consider taking out a deposit loan. Read more here on how to get a loan in place.
Where can you borrow for your deposit?
There are several ways you can borrow for a deposit, and it is a good idea to look into what options are available before deciding to borrow. Here you can see some of the options you have.
Bank loan for deposit
The first option that most people will think of is to go to the bank and inquire about the possibilities of a loan. The bank will then make a credit assessment of you to see if it makes sense based on your financial situation. You will therefore find that you must present documentation in the form of payroll and annual statements or other miscellaneous papers. This process may take longer as you need to know the creditworthiness of the bank before the loan can be taken.
The advantage here is that the bank sees your situation and can advise you if it is the right choice. Also, the bank will typically be able to offer some interest rates that are better for the loans you can find online. The disadvantage, however, is that you have to provide collateral to the bank, as opposed to, for example, an online loan.
Online loan for deposit
Another option is that you go around the bank and take out a loan online. How much you can borrow will vary greatly depending on which loan provider you choose, but you can typically borrow between USD 100 and 350,000, so you are sure to be able to borrow enough money for the deposit. Depending on how much you borrow, the installment time will also vary.
You can borrow small amounts of 6,000, so-called quick loans or consumer loans payable in one month, or borrow even larger amounts that can have a maturity of 15 years. The advantage here is that you can borrow quickly and easily and without having to provide collateral. However, there are certain requirements that you must meet before the loan can be approved. For example, you must not be admitted to RKI and in addition there may be age and income requirements.
Here you can get a quick overview of different loan providers by filling our loan calculator with the desired loan amount and maturity. Here you can see how much you can borrow from the individual and what requirements they make before you can be approved as a borrower.
Deposit loan from the municipality
A third option is to apply for a loan from the municipality. It is a support given to those who are unable to pay the deposit. However, you must meet certain requirements before the loan can be approved.
There are requirements such that the home must have an independent kitchen and the rent may not amount to more than half of your annual income. Your financial situation will also be taken into account here. You can also read more about deposit loans here.
Good advice for a good loan – even when it is for a deposit
There are several things to keep in mind when you want to secure a good loan that will not be too expensive for you. Look for the following:
Here you are dealing with an expression that represents the annual cost percentage, and therefore your indicator of what the loan will cost you annually in costs. Therefore, it is a good comparison factor to consider when assessing the various loans.
How long maturity you choose will have an impact on how much you have to pay per month, so keep this in mind too. It is good to get a loan paid off quickly, but it must also fit with your finances.