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Offer from German bank

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  • 20-11-2013 5:12pm
    #1
    m5ex9oqjawdg2i
    Closed Accounts Posts: 11,221 ✭✭✭✭


    Hi all,

    Just wondering what your thoughts are on this deal. I think it's pretty sweet.

    So my girlfriend is German, she has an account with a bank in Germany, Deutsche Bank. You more than likely heard of it.

    Anyway, she has been offered a mortgage where you save X amount and the bank meet this amount. The interest rate of the amount you are lent is 1%. There is an initial up front charge of 1% of the total you expect to reach.

    So, for example. If we say we would like to reach 200K, save 100K and get a loan of 100K we will need to pay 2K up front and when we draw down on the loan we will be paying 1% on the 100K.

    We can take as long as we like, within reason (can't pay off a loan of 100K at 68 :P), we can pay in a lump sum to help us along and we can do it in several parts.

    We might say we need an initial loan of 75K on top of our 75K savings and then 10 years later get another loan of 25K on our 25K savings. The total amount would be 200K, but we would receive 75% after say 5 years and the remaining 25% after year 10 or whatever.

    Would it be possible to do this AND get a mortgage in Ireland? Say we are looking for a house worth 250-300K, we save 75K and get 75K mortgage from Deutsche Bank. We would then have 150K, and looking to get another loan from an Irish bank for the remaining 100-150K. We would still have the deposit here also.

    We have calculated that it will take us 6 years in our current circumstances to save 75K. We also have shares which we may add in as a lump sum plus some money in prize bonds I would look to put into the scheme towards the end. If you get to 60K and you happen upon another 15K, you can just add it in and get the full 150K out.

    Any thoughts on this? I hope it's clear. :P
    Tagged:


Comments

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    #2
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    Where will you be buying a house? I seriously doubt that a German bank will lend you money to buy property of any kind in Ireland, especially when you see all of the foreign banks clearing out as fast as they can.


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    #3
    m5ex9oqjawdg2i
    Closed Accounts Posts: 11,221 ✭✭✭✭m5ex9oqjawdg2i


    coylemj wrote: »
    Where will you be buying a house? I seriously doubt that a German bank will lend you money to buy property of any kind in Ireland, especially when you see all of the foreign banks clearing out as fast as they can.

    Ireland probably, or if circumstances change then maybe Germany.

    The house can be purchased or built within the EU. We have checked this one out already ;)


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    #4
    murphaph
    Registered Users Posts: 19,020 ✭✭✭✭murphaph


    http://www.toytowngermany.com/forum/index.php?showtopic=229310

    Beware!


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