Banks must credit risks pay more toll: retirees and foreigners at a disadvantage.
A new law will protect the buyer of real estate loans. However, it complicates the home purchase for families, foreigners and elderly.
New recently has Tobias Frick to do with a lot more frustrated customers than they were a few weeks. The consultant at medium mortgage broker Hypo Help, which is active mainly in the Rhine-Main area and in Hamburg, reported by several customers whose loan application was just rejected – although they would have been decided yet positive in winter with security. “These are mainly buyers who bring a lot of capital, but not such a high income,” says Frick.
Earlier there were banks that had barely paid attention to the borrower’s creditworthiness and an equity ratio of 50 percent – after all, the bank can enter a mortgage on the property as collateral. With a high equity ratio, the risk for the bank is therefore low. But in recent weeks, the real estate financiers no longer only fear the failure of the loan or the loss of value of the property – they worry especially about to be taken in future by the borrower because of wrong advice in regress.
This is because the EU residential mortgage policy that applies in Germany since the end of March. Your goal is to protect the consumer, who financed an apartment, more than ever before financial overload. For this, the banks should examine more thoroughly than in the past, whether the customer can use the loan over the entire term. Really new, however, is that the banks are also liable for it. “Many banks still do not know quite how to deal with the new policy,” says Frick. Of uncertainty, some institutions are therefore significantly more restrictive than before – and forgo currently rather a business than to be in the future prosecuted by the customer.
have a harder specific customer groups
It is still too early to call unique numbers. This is indicated also Interhyp, the largest credit intermediaries in the German market, down. It says you do not have a higher rejection rate, but would last the processing of loan applications of the new regulatory longer.
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The first photo shows that it is concentrated in particular groups of customers now have much more difficult to get to a mortgage than before. In addition to the buyers with a lot of equity and little income that is the case for private buyers who want to purchase a property in Germany, but make their money in an EU country which does not belong to the euro area, such as the UK, Sweden, Denmark, the Czech Republic Poland. Until now, they could take out a loan in euros at a German bank. But as the banks now consider foreign currency risks and if in doubt also be held liable for it, most have withdrawn from this business. Sun provides the new EU residential mortgage directive that the homebuyers have the right to convert the loan into its respective home currency when the exchange rate of credit currency (euro) and currency of the home country shifts by more than 20 percent to the detriment of the borrower. The new directive thus to protect against currency fluctuations these buyers. From the perspective of the firm Bottermann Khorrami that advises, among other foreign buyers of German real estate, this means that banks carry a major risk or need to hedge the currency risk themselves. The reaction of the banks is predictable, the firm wrote in a note: “You will simply have stopped real estate loans to non-euro EU-borrower.” But at least there was for this group of buyers workarounds: You would have as a GmbH in Germany found who acquires the property – not necessarily a model for private buyers.