An advance on future sales
To understand the operation of a loan relay , the simplest to equate to a simple advance granted by the bank on the future sale of your home. Charge to you to reimburse this financial aid once you have actually sold the property.
Note : these credits are taken into account in the calculation of the personal contribution.
There are different ways to calculate this cash advance. But first of all, know that you will never get a credit up to the amount of the sale. Caution is required among bankers, especially in this time of financial crisis.
First method of calculation
The bank applies a percentage , often in the order of 70%, to the value of the home put up for sale less capital left over if you have a loan in progress.
Second method of calculation
The bank first deducts the outstanding capital and, on the balance, applies the percentage of 70%. If these two methods seem identical, they do not give the same result at all. The following example shows how the bridge loan works and what results are obtained, depending on the method used by the bank.
Mr DUPOND owns a home on which there is a current mortgage and a remaining capital of 120 000 €. The property is estimated at 250 000 €. Mr DUPOND asks the bank for a bridge loan.
- 1st method: 250,000 X 70% = 175,000 – 120,000 = 55,000 €
- 2nd method: 250,000 – 120,000 = 130,000 * 70% = 91,000 €
As can be seen in this example, there is not one way to calculate this advance and according to the calculation made by the bank, the result may be significantly different.
Repayment of the bridge loan
Once you have determined with the bank the amount of the envelope that will be allocated to you, remains the problem of repayment. And again, the situation can be complicated. Indeed, you will have to repay up to three separate loans not counting the assisted loans like the PTZ Plus.
First of all the current loan on the old housing.
Then the bridging loan for which you will pay only interest.
Finally, the new loan redeemable on your first acquisition
The resale purchase credit solution
The purchase-resale credit formula can facilitate your financing plan and lower your monthly payments. For this, she will group the three loans. Some banks even offer to finance notary fees and even moving expenses.