You need to be logged in to get access to the forums. You can do so here.
there isn't such a free lunch!
Posted on 29/04/2011 5:57 pm
there isn't such a free lunch!
share my stupid experience with all of you, especially person that think he can speak german very well but doesn't really.
I have signed a morgage contract with a bank through a kind of agent. Unfortunately all communication were done with e-mail or phone.
when I got the morgage contract (with a very good interest condition, basically beat all other bank offer), I was asked to sign the contract and sent back to them within 4 effective working days.
The contract contain of 10-15 pages in german (a lot of law / real estate term). I read through it and understand 75% of it and the rest a kind of UNGEFÄHR understood.
I have asked the agent some of special condition that I want to and the agent told me no problem. I trusted that bastard too much. Unfortunately I can't nailed him because only through phone.
The special condition that I have requested were specifically written BLACK and WHITE not to be the case in contract (now that I have talked with the morgage bank and READ the contract carefully again).
I ended up have to pay in worst case 2000 Euro extra. Which make the offer isn't interested anymore and if I had signed contract with other bank, I might ended up with only 1000 Euro extra and save all the trouble to communicate through email and phone.
So lesson learn:
-read all the contract carefully and if you don't really understand the contract, never signed it even if it looks very attractive.
-if you have decided to take any huge credit, better to use a local bank where you can meet them F2F and discussed things thoroughly. All the trouble that I have went through, isn't worth the 1000 Euro.
PS: I have lived in Germany for about 10 years, have no trouble to understand german in daily life/working place or watching TV in german.
So all guys, have a nice weekend.
VP_2004
Member since 15/11/2004
Posted on 03/05/2011 10:28 am
Re: there isn't such a free lunch!
could you share with us the special condition you asked for ?
I recently signed a credit contract, I went with Interhyp the online Finanz consultants and met them in an office in my city.
Generally these are the conditions to check for
1) Sollzins lock in period (mostly 10 years)
2) Tilgung (Start tilgung and the possibility to change it free of cost during the 10 years)
3) Sonder Tilgung - percentage of the whole credit you can pay as a lumpsum per year (mostly 5% in a year)
4) After 10 yrs you have the possibility to pay back all the balances at once or refinance according to the rate then prevalent.
Other than this, did you ask for anything special and hence the extra costs ?
jackal
Member since 06/09/2004
Posted on 04/05/2011 5:41 am
Re: there isn't such a free lunch!
in my case, I have to pay the Bauträger in 7 rates.
I have requested specifically to the agent THAT I want to use my Darlehen to pay the 1st and 2nd rate, then I will use my own money.
In the contract, the bereitstellungzinsen provision is only 2 months and I have to use my own money 1st THEN I can use my darlehen.
So I am in the stupid situation now, paying bereitstellungzinsen provision for extra 6 months for NOTHING.
VP_2004
Member since 15/11/2004
Posted on 04/05/2011 12:07 pm
Re: there isn't such a free lunch!
Oops! thats something bad, but yes it is always written in the contract.
By the way I thought the default is 6 months for all banks but it seems not. For an under construction property, 2 months is very less.
Also not the bereistellung zins is for the amount that is not used after the elapsed time. May be just check with the bank if you can use the credit for the first payments and then later use your own capital for the later payments. You can assure the bank by placing you own capital in a fixed deposit for 2 months. In that case you gain the amount you lost with the interest paid.
Just an idea, but dont know if it really works.
jackal
Member since 06/09/2004
Posted on 04/05/2011 7:17 pm
Re: there isn't such a free lunch!
it isn't a default.
in my case, the interest rate was the best in the markt at that time by 0,4%.
Also in my case, not all bank will give me offer.
VP_2004
Member since 15/11/2004