Do you have a loan covered by the Settlement Act? Want lower installments? We are now showing a very good loan redemption option for those who have mortgages covered by the Settlement Act and have already received a settlement letter from their bank.

Starting March 9th, Konsume Bank’s new repayment loan, known as the “Konsume Settlement Krediting Loan,” will save you a significant amount. We can replace our home mortgage or free use mortgage with any bank for this favorable loan, with an APR of 5.3-6.9%. The bank applies only one (K2) rating to the new repayment loan. The same amount of interest / interest rate surcharges can be used to redeem a free-standing loan and a home loan.

 

What are the conditions we must meet?

currency loan

In order to qualify for a loan, we must meet some basic conditions, one of which is that it can only be used to redeem a loan covered by the clearing law. We must have a Letter of Credit from the lender’s financial institution, we must not be in default of payment of the loan to be replaced and must not be on the KHR (BAR) list. Our loan to be redeemed does not have a savings account, no other burden on the mortgaged property, and our income must be paid into a bank account.

 

How do we get discounts?

discounts

There are four ways to reduce the interest rate on a loan, and you can combine individual interest discounts. The bank will give you a 0.5% discount if you receive at least $ 100,000 in your Konsume bank account. With Konsume Home Insurance you get a 0.1% interest discount and with Konsume Risk Life Insurance you get an additional 0.2% lower interest. Achieving a 0.25% interest rate cut is a bit harder because you get it if you have a bank savings of at least $ 5 million or if you have a $ 300,000 income.

It is important to note that we cannot achieve a level below a certain minimum interest rate even if we can meet all the discount terms. The minimum interest rate for a 3 month interest rate is 3 months BUBOR (2.10%) + 2% for a total of 4.10%. For a 12-month interest period, the 12-month BUBOR (2.08%) + 2%, ie 4.08%, and for a 3-year interest period is 4.81%, and for a 5-year interest rate is 5.30%.

 

What will be the interest?

What will be the interest?

Let’s see if we can meet two of the above interest-reducing conditions, we have at least $ 100,000 in income on our Konsume bank account and we take out Konsume home insurance. In this case, we can borrow at the interest rate chosen for the chosen interest period: 4.20% for 3 months and 4.18% for 12 months. If you choose an interest rate of 3 years, the interest rate will be 4.87%, compared to 5.68% for a 5 year period.

 

They also provide additional discounts

They also provide additional discounts

In the case of a Konsume Redemption Loan with Initial Settlement Fee, the Bank will waive, reimburse or assume all or part of the Initial Fees in the case of loan applications received between 9 March and 31 March 2015. Unconditionally, they assume the value of the valuation fee, the cost of ownership and the copy of the map. If certain conditions are met (for example, having a specific Konsume smart account package), you will be reimbursed for the notarial deed fee (up to $ 60,000) and the full amount of the contract fee will be released.

 

Simplified documentation

Simplified documentation

We do not need a capital debt claim to apply for a loan as the amount is stated in the settlement letter. We do not need any employer certification, just a three-month bank statement. In addition, we will require a loan and pledge of our clearing loan to apply for the Konsume Clearance Reduction Loan.

 

The future of the 5-year interest period?

The future of the 5-year interest period?

We would like to inform our readers about another significant change. As of March 1, Erste Bank has been offering mortgages for residential and non-residential purposes with a 5-year interest rate. Fixed interest rates for many years provide security for borrowers with long-term predictability. For housing purposes, the interest rate on the loan is 5,62-6,82% (APR: 5,87-7,14%), with a 5-year interest period, depending on the discount categories determined by our income. The interest rate on 5-year overdue mortgages is 6.82-8.02% (APR: 7.14-8.43%), depending on the discount category.
It is worth waiting for your bank to receive the clearing letter, as many banks are expected to offer lower interest rates .