Until recent years, credit institutions were often not given quantities beyond 80% of the appraised value of housing that he wanted to buy. But the rising price of housing has been more and more people need more of that 80%.

Moreover, household savings has declined, so that few people will have in their coffers with the remaining 20%. To which will be added expenses and taxes.

Although by definition have a mortgage as collateral the property acquired with it, banks do not want to stay in the homes of those unable to pay if they can avoid. Your profit is in charge interest as long as possible. By law, mortgages of up to 80% of appraised value will not be affected by other security than the same property.
When asked for a loan worth more than 80% of the appraised value of housing

But the circumstances previously mentioned, many people are forced to order more than 80% of the appraised value to meet the payment of housing and the costs associated with their purchase as well as furniture, appliances, etc..

In these cases, institutions ask for a guarantor to respond with their property (collateral) if the owner has not replied to credit payments. This is supposed to involve family or friends in an embarrassing situation for both. Also someone buying a second home may be required to attest that the first new acquisition.

But there are people who have no previous possessions and have no relatives or trusted people in the country that serve as guarantors, even in situations of economic solvency. This makes a lot of people could not access the purchase of a home and what banks also lost important business niche.
Unsecured mortgages over 80% of the appraised value to acquire housing

Thus, organizations can give no guarantee mortgages even if more than 80% of the appraised value of the house to buy. In fact, tend to arrive even at 120% of that value.

In return, organizations require the customer to take out insurance to cover the unpaid dues. Thus, monthly payments will consist of three added: principal, interest and insurance. This may adversely affect our future solvency level, because in exchange for not presenting guarantors will face a significant increase of quotas for the amount of insurance. Therefore the repayment terms are broad, up to 40 years, which makes payments more affordable and offset by rising insurance costs. And also this extension in time makes the operation profitable for the institution.

But there is often no guarantee mortgages as specific products widespread in all entities. Rather, individual cases are studied and their characteristics. Because even with insurance and property as collateral, banks grant loans only if they believe that his client maintains a certain level of solvency.

For example, as a rule, do not grant mortgages whose rates exceed 30% resulting from customer’s monthly income. And taking into account other loans that may be paying (car, cards, etc.).. Furthermore, it may impose certain conditions, including that the client has official or permanent contract in a medium or large, etc. If the conditions itself to mortgages tend to be stricter in the case of mortgages are usually unsecured him even more.

In any case, the usual practice of banks is to apply (rather require) a guarantor for transactions over 80% of the appraised value, rather than establish a mortgage without a guarantor but assured.

A time to pay our taxes, we take advantage of a number of mechanisms that will reduce the amount payable or, where appropriate, increase our return. These tax deductions.

In this article we will focus on three products that can qualify for deductions on income tax: Housing Accounts, Pension Plans and Mortgages. There are other ways to deduct, such as fees paid to mutual trade unions, have dependents, donations to nonprofit organizations, and so on. On another occasion we will discuss more deeply the tax deductions.
Tax deductions for Housing Account

To begin, we say that a housing account is a repository where they make regular contributions that are deductible as long as they specify that their ultimate goal is the acquisition of the residence, which has to buy four years before the formalization of its account. Otherwise, we claim the tax refund of tax benefits over their respective interests.

One way to maximize our capital would invest the money into another financial product with greater interest than the Housing Account and the end of the year, before December 31, enter the amount in the Housing Account, because the deductions are calculated on the balance 31/12.

Therefore, the fact that it is a deposit for the purchase of the residence, makes this product is often appropriate for young people who plan to become independent.
Tax deductions for mortgage

After purchasing the home, usually as security for payment mortgage credit contracted with the entity to deal with the purchase. The mortgages also deducted for the income statement. All expenses for the purchase of housing, such as Notary, Property Registry, administrative, etc.., Plus the amount of the payment of principal and interest of the period, are deductible on income tax. Therefore, we must take advantage of these tax benefits (see article on advance payments on mortgages).
Tax deductions for pension plans

Finally, another product that allows tax deductions is the pension plan. In fact, the product allows the biggest possible deduction.

A pension plan is a repository (input) the managing body normally performed in an investment fund to use the capital invested in its revaluation at the time of retirement, or if there is a disability, serious illness or unemployment prolonged. In case of death will be the beneficiary chosen by the owner who copper. This capital value will vary daily, depending on the evolution of the fund, its value is calculated by dividing the total value of the fund between existing shareholdings.

When the hour of return on investments (vested rights) may take the form of an immediate income (payment) of deferred income (monthly, quarterly etc ….), Or a mixed income (down payment and a regular income ).

As mentioned, the biggest advantage of the Pension Plans is your tax reduction. In fact, allow a tax saving of up to 43%. Until age 50, the annual contribution limit is $ 10,000 plan. After 50 years, the contribution limit of 12,500 euros. So are the tax benefits that encourage us to have a pension plan. Another option is to find (not easy without taking risks) financial investment products which, although not tax deductible, provide some income minus taxes, the tax deduction over the plan over the expected value of revaluation.

The three products we tested are not mutually exclusive. We could say that the maximum tax advantage would be: get an account housing, acquire housing and mortgages. And get a pension plan as soon as our economy is sufficiently loose to devote part of our income to the regular enforcement of the Plan. In addition, the Pension Plan will complement the future income that we shall by our pension.