Loan for consolidation despite bad remark & providers that really help



Many people apply for a loan to bridge a financial bottleneck and thus ensure their own financial flexibility. But a loan always has a certain duration which normally lasts a few years. Over the years, some borrowers are considering debt consolidation, especially if the current loan is more expensive than a debt consolidation loan. With a debt loan, a cheap loan can be won, which can save a lot of euros. But also a debt consolidation loan has its criteria. So even with this consolidation a loan inquiry. If this turns out to be negative, a consolidation is usually not approved. But there are still ways to get a loan for consolidation despite bad remark.

A guarantor increases the chances of a loan for consolidation despite bad remark

The way out of the debt trap

For a loan for consolidation despite bad remark, for example, a guarantor can be provided. This indicates a positive credit decision and serves the bank as collateral. If the borrower can no longer meet his obligations, the guarantor will intervene. Even a guarantor needs positive references, such as a regular income and a positive bad remark information. He should be alerted to his risk of debt liability. In addition, a loan for consolidation, despite bad remark be covered by a life insurance. If a few years have already been paid in and accumulated, this can be pledged for the duration of the installment term. Once the loan has been paid, life insurance will return to the borrower’s possession. However, this lending is associated with a risk. If something happens to the borrower during this period, his dependents are not covered. An accomplished banker can, however, give helpful tips on this loan.

The way out of the debt trap

Also, the conclusion of a residual debt insurance is a way to get a loan for debt consolidation. The residual credit insurance is an insurance that occurs when the rates have to be suspended because of unemployment. With such insurance, the bank secures and they are more willing to give credit for a debt consolidation despite bad remark.
The offer is big for a debt consolidation despite bad remark, but customers have to put up with some waiting time and discussions with a bank. A debt consolidation can be a way out of the debt trap, since there is only one obligation a month and the debtor has the opportunity to no longer accumulate new debts.

Consolidation of your mortgage lending


What is debt consolidation?

What is debt consolidation?

A consolidation means the conclusion of a new loan agreement on more favorable terms. Often a debt consolidation is associated with a change of the banking institution. However, this step is only necessary if your current bank does not offer you an attractive offer. Anyone who completes mortgage lending ties themselves to the loan for a long time due to the fixed interest rate commitment , which is usually between five and 30 years. After that, a construction loan is still often not completely paid off. This means that as soon as the interest rate lockout expires, a residual debt must be further financed – follow-up financing is required. In most cases, follow-up financing offers are more attractive to other banks than their own bank. consolidation, where you switch lenders and replace the existing loan with a new one, is often a good way to pay off the remainder of your debt.

The current interest rates are very low, so it offers for real estate buyers to take a look into your contract documents. If you have completed your construction loan at a much higher interest rate, you can save a great deal of money by consolidation the real estate financing. Even a few tenths of a percent brings a significant cost savings. A debt consolidation during the fixed interest rate is not so easy: Mortgage lending can not be terminated without further notice.

Remortgage: how to really save

When consolidation, you usually change the bank and thus the creditor, who was previously registered for the construction loan in the land register. It is replaced by the new creditor. The change of the land register must be made by a notary and both the land registry and the notary keep the wallet. As a rule, these additional costs amount to about 0.3 percent of the loan amount. Assuming your remaining debt is still 180,000 euros, then you would have to raise 540 euros for it. If you repost your building loan and get a better borrowing rate on land, you have the fees quickly recouped, as our sample bill shows. Here you see: If the borrowing rate is only 0.3 percent per year better (1.3 instead of 1.6 percent), you save 4.879,61 Euro interest costs within ten years. Of this, you still have to deduct the 540 euros of notary and land registry fees, but there remains a profit of 4,339.61 euros, which you generate with a consolidation.

Optimize loans through consolidation

Follow-up financing gives you a unique opportunity to optimize your current financing. Because things may have changed in the past with you. Maybe you will earn higher incomes or have now saved something that can now go into mortgages. With a consolidation you can adjust the mortgage lending of your life situation. First of all, check two variables: the monthly rate and the repayment rate. The currently low interest rates give you various options.

Variant 1: keep monthly rate, pay more

You keep your monthly installment when consolidation. Due to the lower interest rate, a larger part is automatically used for the eradication . So you pay off your loan faster, shorten the term and are faster in this way debt-free.

Option 2: Lower monthly payments for more financial freedom

The lower interest rates put you in the position debt consolidation, reduce your monthly payments, but still just as fast to pay off as before. This option is useful if you want to reduce the financial burden and get more space every month.

Variant 3: Choose a longer fixed interest rate

With the interest rate advantage, you could also opt for a longer fixed interest rate of up to 30 years. You get the consolidation from the outset offered a better interest. However, longer interest rates increase interest rates again. In the end, you will probably receive the same interest rate as before, but long-term interest rates will provide greater planning certainty. You switch off the interest rate risk over a long-term consolidation.

Variant 4: Install more extras

Many special conditions cost extra for mortgage lending. For example, if you want to make more special repayments than just the standard five percent per annum per year, this special option increases the borrowing rate. If you receive a lower rate of interest from consolidation, such opportunities are suddenly open to you.

When a consolidation is possible

In order to reschedule mortgages, a new loan agreement must be concluded and the old one terminated. Before expiry of the debit interest payment, a cancellation of the construction financing is only possible in exceptional cases. On the other hand, with the expiry of the debit interest payment, you have practically a free hand.

Reposting mortgage lending before expiry of the borrowing rate commitment

To terminate the contract prematurely before expiry of the debit interest is generally only possible in three cases:

  1. You want to sell the property: You are always free to sell your home. In this case, the bank is required to discharge you from the associated loan agreement, but may charge you a prepayment penalty .
  2. You need additional funding : you want to increase the loan to make a conversion that has become necessary due to changes in your private life. Sudden need for long-term care is a good example for this, then the apartment usually has to be converted barrier-free. If the bank is not willing to grant you a higher loan, although this would be purely mathematically possible, you usually have a right of termination. Again, the bank will levy a prepayment penalty.
  3. Your credit has been running for more than ten years: According to legislation (Section 489 BGB), you can cancel your mortgage lending anytime after ten years with six months’ notice, free of charge. In this case, the bank may therefore not charge a prepayment penalty. It does not matter which fixed interest rate you defined at the beginning. Even mortgage lending with a 30-year fixed interest rate can thus be terminated after ten years.

Reverse mortgage lending after expiry of the borrowing rate commitment

After expiry of the set fixed interest rate you can make your mortgage refinance easily. It is important that you are aware of the time. Have a look at your loan documents and note the time when the debit interest expires, as a reminder in your calendar. Even before the interest rate commitment expires, it makes sense to think about follow-up financing.

Advantages of debt consolidation at a glance

The consolidation of mortgage lending brings several advantages, which we have already explained in the previous text. Below we have summarized all the positive effects for you.

  1. Less interest costs, pay off faster

    The interest rate is currently very low. You can use this for both a prolongation , ie the extension of your mortgage lending at the old bank, as well as a consolidation of a new bank. However, offers from other banking institutions are often better. Therefore, take a close look at the market situation. Because a better debit interest not only helps you to save interest costs. It also gives you the ability to pay faster without having to pay a higher monthly installment. This alone can make the transition to a new provider doubly worthwhile.

    Starting with a difference of 0.2% to your current interest rate, the interest savings exceed the switching costs in the form of prepayment penalty.

  2. Low loan amount reduces financing risk

    If you repost your mortgage, the amount of the residual debt is less than the loan amount you raised for your initial funding. For the bank, a high loan amount means a higher risk, which means that the interest on the loan is higher. Conversely, this means: If your loan amount has dropped, which is the case with your remaining debt, the interest rate is set lower from the outset. At the same time, the loan-to-value ratio, ie the ratio between the loan taken up and the mortgage lending value, is changing, with the result that the bank is issuing better interest rates.

  3. Overview of the finances

    If multiple loans are combined through a consolidation, you get a better overview of your finances. Instead of paying several installments of different loans to the banks, now only one installment to one bank is needed. As a result, you have planning security and an overview of your monthly spend over the life of the new loan.


Is it Possible to Consolidate Loan in Austria?



In Austria, many people, despite the orderly financial conditions, often come into the position that loans are needed.

It does not matter, whether for the training, the house construction, the purchase of housing or the establishment of the new kitchen. The savings are simply not enough in many cases. Especially with the larger loan amounts, the long-term commitment is made, which, however, should not scare off an investment. A loan is a legitimate and fair way of financing when negotiated well and sufficient information has been obtained. Anyone who wants to repay a loan, even with long maturities can still benefit from the favorable conditions currently.


To consolidate a loan

Credit repost Austria

Many people in Austria ask themselves how a person can repay a loan. Especially the loans with the long maturities are often outdated. An example at this point is the housing loan. Over time, the terms and conditions change, and in many cases interest on a borrowed money will be cheaper. Through the debt repayment there is the possibility that new loan models will benefit and then in the end less will have to be repaid. For the loans and a consolidating, however, there is also a lot to consider. Before the credit debt is considered, it should be carefully examined whether this makes sense. The possibility of consolidating many customers have taken into account when borrowing a few years ago. Currently there are usually cheaper rates for loans in Austria and many did not expect that. Unfortunately, depending on the contract, not every person can benefit. For some credit agreements, there is the fixed term and the early repayment is then not possible. If a loan is to be liquidated before the end of a contract, then the expenses are high. Anyone who still wishes to terminate a contract often has to expect a notice period of up to six months.


When does the consolidating make sense?

When does the rescheduling make sense?

With the help of a consolidating the savings are possible, especially with the higher loans. Previously, there is always a bit of computation necessary and it must be carefully considered, which amount have the processing fees and the resulting charges. The difference between a new and old loan is particularly important. The consolidating of loans in Austria is only recommended if the expenses are in the profitable relationship to the interest rate. In many cases, consolidating can certainly pay off and save money. Not the bank that is currently the lender should be asked for consolidating. Often it is better if another financial institution is included in the selection. Often good interest rates can be offered and the consolidating then works relatively straightforward and fast.


Can the consolidating pay off?

In Austria, suitable debt restructuring loans are often found. To survive are only loan amount, the desired duration and also the investment purpose. Suitable offers can be determined quickly and in the end only the terms of the contract have to be checked. Not only duration and interest rate are important, but also other fees or the possibility of follow-up financing. An active help with the consolidating can make sense, because by a professional support, there are significantly better opportunities for a fair exit. For many it is important for the consolidating that this clear conditions are created. Not only lower interest rates are a reason, but on the financial situation, there is usually a better overview at the end. Anyone who has often taken out some installment loans can combine this into a loan and then this is done through a common account. Therefore, only one loan can be made out of several obligations and therefore a lot of effort can be saved.

How much can you consolidate your debts?

If you are an owner, you can use the equity (or equity) of your property to consolidate your mortgage. The liquidity thus obtained could allow you to realize various projects like … a consolidation of your debts .

Did you know that, according to the Canadian Mortgage Professionals Association, last year alone, about 10% of Canadian homeowners consolidated their mortgages for an average of $ 49,000?

So, if consolidation your mortgage is an interesting avenue for you, the first step is to determine how much you can claim.

In Canada, the maximum you can access is 80% of the equity in your home.


Calculating the amount from your mortgage consolidation

The equity value of your property is the difference between its current market value and the outstanding balance on your mortgage.



Market value of your home: $ 250,000

The balance of your mortgage: $ 75,000

Maximum Loan / Value Ratio in Canada: 80%


The calculation of maximum mortgage consolidation :

Estimated market value x loan / value ratio

$ 250,000 x 80% = $ 200,000


The calculation of the amount you can dispose of on the net value of your property :

Limit of your consolidation – your mortgage balance

$ 200,000 – $ 75,000 = $ 125,000

Even if consolidation your mortgage gives you access to $ 125,000, if your total debt does not reach this amount, you do not have to add this amount to the balance of your current mortgage. You can borrow only a fraction of it.


When to consolidate your mortgage to pay your debts? Mortgage penalty

You can manage your debt from the equity of your property at any time . However to access this capital, various fees will be applied. For example, you will have to pay penalties if you terminate your mortgage early, before the end of your term (usually 5 years).

It is important to use a mortgage broker to assess whether mortgage consolidation to pay off your personal debts is good for you, especially if your loan has not expired.

A certified and seasoned professional will help you make an informed choice by calculating the costs of your mortgage consolidate . It will take into account, among others, the:

  • Assessment fees of your house to know the market value
  • Mortgage penalty fee if your term is not completed
  • Fees for opening and studying your file
  • Legal fees (notary) if the amount of consolidation is higher than that of your original loan
  • etc.

On the other hand, by negotiating for you an interest rate lower than your current rate (fixed or variable, as desired), your mortgage broker could save you interest on your new loan, which would be a plus.

In addition, you could extend the amortization period of your new loan to reduce the amount of monthly payments.