ASHLER & MANSON has been offering loans for more than 15 years to individuals who wish to invest for their main or secondary residence or for a rental project.
Before defining the financial conditions, in particular whether the rate will be fixed or variable , the form of the loan must be defined. There are three kinds.
DEPRECIABLE LOAN:
In all types of loans , it is the loan most commonly set up , including during credit consolidation operations, even if the adjustable rate offer is more developed there .
Each monthly payment is made up of a share of interest and capital. The proportion of capital in the monthly payment becoming increasingly strong as the evolution of the loan. Ideal in the purchase of the main residence.
ULTIMATE LOAN:
Rather reserved for investors, this loan consists of amortizing the capital in one go and at the end of a fixed period. Previously, the borrower will repay monthly the interest generated by this loan. This loan often needs to be backed by a life insurance policy which must be used to repay the In Fine loan.
The two main advantages of this loan are:
The investor increases the deductible loan interest and therefore the tax exemption of his rental income,
it creates a leverage effect on assets, since the loan insurance covers the entire loan in the event of death. Thus, in the event of settlement, the loan is reimbursed and the life insurance paid to the beneficiaries.
To date, In Fine operations are rarely implemented for the following reasons:
Very low interest rate which makes the interest deduction and therefore the tax effect very low.
Very low life insurance yields, because the bank imposes a risk-free investment, therefore on Euro Funds which yield very little. Very limited snowball effect.
Gluttony of banks who want: 100% backing (they want the borrower to block all the funds from the start) on a home investment (no choice to go and choose one elsewhere), cost of loan insurance too high, loan interest rate higher than for an amortizing loan.
BRIDGE LOAN:
Often essential, in the event that the borrower positions himself on a property for purchase when he has not sold the property he previously owned . It is calculated in several ways, knowing that the bank generally agrees to lend 70% of the net value ( that is to say minus the balance of any outstanding credits on this property ) of the property put up for sale.
The bridge loan can be with a total deductible : the client will only pay the interest at the end. Otherwise the borrower can opt for a monthly payment of interest generated by the loan: partial deductible.
Ashler & Manson offers you, through its thirty partnerships , all types of fixed rate or adjustable rate financing in all forms: Depreciable Loan, In Fine, Relay, Mortgage, etc. Over all durations from 6 months to 30 years. We can also assist you in your loan renegotiation/repurchase and also credit consolidation projects .
Whatever your situation and whatever your objectives, our teams will use their expertise to guide you towards the most suitable credit offer and will accompany you during the course of your loan.
For more in-depth information on various notions of real estate credit , do not hesitate to consult our glossary or the site immobilier-danger.com.