Anyone tried to get a mortgage recently

cressers · Post by **cressers** » Wed Oct 15, 2008 5:06 pm

INteresting morning with the bank for me.

The requirements have certainly changed since July. All flexibility is gone.

Anyone else looking? Seems the housing market is bound to fall if the terms are you need:-

30% price - 35k€ as a deposit

So for a 200k apartment, thats 25k€ deposit needed. Minimum.

**Sponsor:**

Rick1 · Post by **Rick1** » Wed Oct 15, 2008 8:04 pm

Hullut päivät on ohi

If you think that the prices are dropping it does not seem that strange that they ask 30 percent down payment. This means that prices will drop even more and that is why they are so busy in Brussel and France to get the governments (our tax money) pumping money in the economy.

paulrenn · Post by **paulrenn** » Wed Oct 15, 2008 9:03 pm

Which bank? A friend of mine just got a mortgage with, I believe, Nordea and did not seem to have any bother. Try another bank!

cressers · Post by **cressers** » Wed Oct 15, 2008 9:34 pm

sorry, that was 30% of the price, and there is 35k€ the bank will cover.

So 30% of 200k is 60k minus 35k is 25k deposit.

OP was the bank.

Rick1 · Post by **Rick1** » Wed Oct 15, 2008 9:42 pm

So you think 25k on a 175k loan is too much? This is about 14 percent and has to cover min. the costs when it goes wrong and the house has to be sold. Do not think you get it much better or it must be from a bank which we have to support next year

cressers · Post by **cressers** » Wed Oct 15, 2008 10:55 pm

Yeah, I guess my point is that the Finnish market is not so good.

6months ago they were more than happy to offer 100% mortgage.

Salary has nothing to do with this calculation. It now purely looking after their risk is prices fall.

I guess finland is heading for a property slowdown. We have been noticing a lot of reduced prices on Etuovi recently, for our search criteria, I have not seen one reduced price in the last 6-8months, but now there are approx 20 reduced prices.

ad · Post by ad » Fri Oct 17, 2008 4:22 pm

So why not wait until the market falls?

cressers · Post by **cressers** » Fri Oct 17, 2008 11:26 pm

family reasons

Rosamunda · Post by **Rosamunda** » Sun Oct 19, 2008 5:46 pm

What was the marginal rate they offered you? +0,3% ???? I bet not.

cressers · Post by **cressers** » Sun Oct 19, 2008 7:16 pm

nope, up to 0.48 !!!

Amazing how its changed, have had open offer for about 1.5yrs....just time has been wrong, cant find place etc, and interesting to see how less relaxed its becoming...

raamv · Post by **raamv** » Wed Oct 22, 2008 12:51 am

penelope wrote:What was the marginal rate they offered you? +0,3% ???? I bet not.

I still have my 0.25 standing..

Tiwaz · Post by **Tiwaz** » Wed Oct 22, 2008 7:46 am

cressers wrote:Yeah, I guess my point is that the Finnish market is not so good.

6months ago they were more than happy to offer 100% mortgage.

Salary has nothing to do with this calculation. It now purely looking after their risk is prices fall.

You know, giving loans to people who can't pay them back is what caused this whole problem. So from my point of view market is good when they do not give loans easily.

That 100% mortgage came with it's own set of bells and whistles. You can never get as good offer if you have to beg for bank to provide 100% compared to situation where you have something to show for yourself.

And to my recollection, 100% mortgage was offer only to people buying their first apartment... Might be wrong, been a while since I looked over at the OP loans.

Travmies · Post by **Travmies** » Wed Oct 22, 2008 7:59 am

I'm not sure if there is a problem with the 100% housing loan in theory, the problem starts when regular people have to take a second loan to get the housing loan in the first place. This of course creates problems in itself by overloading the buyer with unnecessary outgoings such as a highly inflated personal loan. If the house buyer had the opportunity to buy a property at a reasonable rate in the first place then there would be a greater possibility that they would be able to continue to pay their loans.

Tiwaz · Post by **Tiwaz** » Thu Oct 23, 2008 7:46 am

Who is to blame that some idiot buys house which is way above their ability to pay?

Is blame on guy selling the house? No.
Is the blame on the bank? Yes, for giving loan.
Is the blame on the idiot? Absolutely!

Buying house should start with REALISTIC assessment on what you can afford to pay every month for loan and rest. Not with finding dreamhouse and buying it regardless of cost.

No point whining about excessive house prices. Prices are what people are willing to pay. If idiots are willing to pay insane prices, insane prices shall be asked because selling houses is not some odd field of charity.

People have to start accept that they are personally responsible for their own decisions. You can't say buying a house is momentary lapse of judgement.

Travmies · Post by **Travmies** » Fri Oct 24, 2008 8:45 am

We walked into the bank about 3 years ago and asked for about 95,000€ for a country house and some land (Out houses and all), well we got the money there and then.

The reason was not that we had good jobs or long employment record or we had got a good deal, the main reason was that most young people looking for a first time loan wanted in the range of 200,000€ - 400,000€ for a small flash place in Helsinki, Porvoo, and so on.

Our load was almost too small for them to consider and a home loan.

People asking for loans should be thinking long term, not class image.

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