Archive January 2019

Find The Best Loan Plan For You And Apply – Payday Loans Online No Credit Check

With a view to completing the analysis of the European Standardized Information Sheet for Housing Credit , we will now turn to the last items in this document. In the last articles on the subject we focus our attention on the nominal and effective interest rate without leaving out the revised annual effective rate and also the introductory aspects. fleshes this out

Today we will identify conclusive aspects of the Information Sheet, such as amount, duration, number and periodicity of the services, additional costs and early repayment.

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Here there is no great difficulty in understanding the information returned in these fields, since in our initial article on simulating housing credit we have identified the elements necessary to carry out a credit simulation.

The amount is in accordance with the conditions under which you negotiated the acquisition, works or construction of your dwelling. In the case of acquisition, the contract of purchase and sale is the document that clearly identifies the acquisition value, however, in the case of construction or works, the budget will be the best document.

The duration of the loan should be in accordance with your financial capacity, so you should first check the maximum amount of the benefit you can afford taking into account all the charges and expenses you have in your family budget.

Determine a Security Value for the Rendering of Your Mortgage

Determine a Security Value for the Rendering of Your Mortgage

Determining a security value for the provision is critical. Thus, you can establish a withdrawal period that will return the term indicated for your housing credit.

If for example a benefit of 600 euros is framed in its monthly effort and for this benefit has a loan duration of 30 years, it does not make sense to hire a housing loan for 40 years and bear a benefit of 500 euros, costs in terms of interest paid.

The difference between a 30-year loan and a 40-year loan in terms of total interest is approximately EUR 30 000 for an amount of EUR 140 000 at an interest rate of 3%. As a general rule, the periodicity of the benefits is monthly and this periodicity determines the number of benefits that will have to be returned to the bank. It is possible to change the periodicity of the installments for quarterly, half-yearly or annual installments, however, it is not very usual for banks to accept this type of periodicity.

Additional Costs and Early Refund

The additional costs identify the costs of the funding request and are clearly represented in this field. It is an item that should be compared to other home mortgage simulations, comparing the recurring and non-recurring costs of home loan. The recurring costs are those that will be verified throughout the credit, such as insurance premiums or processing commission.

The costs not incurred are the charges for the application, formalization and contracting of the credit, such as opening and dossier commissions, etc.

The early repayment is legislated by Decree-Law no. 192/2009 which stipulates 0.5% on the amortized capital if the loan is a variable rate and 2% if the loan is a fixed rate, however, the decree does not provide for the amount of this reimbursement, while the banks have the ability to set minimum amortization amounts that may prevent them from paying the housing loan earlier.

Money Separating Technique

Technique of setting aside money 


Putting money aside is a tax strategy to reduce your taxes. This strategy involves converting your personal loans whose interest is not deductible from your taxable income into a loan used to pay business expenses whose interest will be deductible.

Who is it for?


For unincorporated self-employed, unincorporated business owners or rental property owners who have business expenses.

How to do?

How to do?


You use your income (business or rental) to pay for your personal expenses and personal loans. You borrow to pay your business expenses.

Here is an example:

Mr. Autonome has a gross annual income (before expenses) of $ 100,000. Each year, his business expenses rise to $ 50,000, and he has a $ 100,000 mortgage on his residence. Prior to the establishment of the MAPA, Mr. Autonome could not deduct the interest paid on his mortgage of $ 100,000. After one year of setting up the MAPA, Mr. Autonome can deduct the interest paid on his line of credit by $ 50,000 and can not deduct the interest paid on his mortgage by $ 50,000. After two years of setting up the MAPA, Mr. Autonome can deduct the interest paid on his line of credit of $ 100,000. In two years, Mr. Autonome transformed his mortgage – whose interest was not deductible from his income – into a loan whose interest is tax deductible.

What did Mr. Autonome do during these two years?

He has opened two bank accounts: the first one we will call “income account” and the second one linked to a line of credit that we will call “expense account”. Mr. Autonome deposited all his income in the “income account”. From this account, he paid for his personal expenses and repaid his mortgage. From the “expense account”, he paid exclusively for his business expenses. He did the same thing again in the second year. This technique is very tax-efficient because it saves a lot of taxes. The Canada Revenue Agency (CRA) has recognized the validity of this technique since 2002. All you have to do is use it and save money.