The home loan is a valid alternative to the mortgage, a solution to take into consideration if you want to buy the first or second home or undertake renovation work . In the case of home loans, the amount payable is decidedly more contained than that of mortgages, but the disbursement times are decidedly faster. Most banks and lenders offer this particular solution to their clients, but with conditions that are often very different. This is why we remind our readers to compare the financing and the conditions proposed by each bank, so as to quickly and easily identify the most convenient formula.
Inquire about those of any other credit institution will therefore be better able to assess the conditions offered by the home loan and choose the formula closest to your real needs. But let’s proceed in order and try to evaluate together what are the advantages and costs of this particular solution.
Home loan: what are the advantages offered?
Generally required to buy the first or second home and related appurtenances, or undertake complex restructuring projects that are therefore very high. As the word itself says, these are low-value loans and for this reason the credit that can be paid cannot exceed 100,000 euros . For this reason, these are ideal solutions to be adopted if you already have a significant starting capital to invest in the purchase of a new building.
The second aspect that makes these solutions much appreciated by savers regards the absence of guarantees . In fact, in order to access the liquidity, it will not be necessary to place a mortgage on the property, even if the bank or the chosen credit institution will perform its checks in any case to assess the applicant’s financial reliability and the presence of a continuous source of income.
Finally, the third big advantage to consider regards the delivery times . In fact, the more streamlined bureaucratic procedures make it possible to considerably shorten the time and deliver the amount requested within a few days, or from a minimum of 24 hours to a couple of weeks, but certainly much faster than any mortgage.
As it is easy to understand, the possibility of accessing a financing on such advantageous conditions also implies some negative aspects, which in this spill over onto the cost component. In fact the interest rates applied in these cases are decidedly higher than the market averages and will vary according to the chosen bank. Generally, a higher APR is applied than the one provided by the loans, which can be modified during the loan.