LD Loan offers a convertible rate mortgage “cape + 1”. A loan whose rate can go down – without limitation of floor – and whose ceiling rate is secure. This type of credit allows the borrower to take advantage of market rate cuts, while knowing from the outset the maximum rate that can be applied to it.
LD Loan offers a winning formula for the borrower
LD Loan offers a rate of return of +1 Cap at a rate of 2.10% over 15 years. This variable rate “TOTALLY secure” is capped at the starting rate + 1 point, ie a maximum rate of 3.10% and is variable WITHOUT LIMIT to the decline. The risk for the borrower is non-existent since the ceiling rate is set by contract at the outset, and can not be exceeded under any circumstances, regardless of changes in the reference rate.
This variable rate is indexed on the Euribor 3 months . The loan rate will be increased or decreased according to the variation of the index (difference found between the revision index and the previous index) . This new rate will only apply if the variation (up or down) is greater than or equal to 0.10. Otherwise, the current rate will continue to apply. The rate review date is annual, on the anniversary and for the 1st time a year from the date of issue of the offer.
This product makes it possible to finance all types of real estate projects: new or old acquisition, construction, sale in the future state of completion, works, land alone, intended for the main or secondary home, a rental investment, a mixed use ( private and professional), a tourist residence.
Hypothesis Variable rate VS Fixed rate
Example for a loan of 180,000 euros over 15 years.
You will find that even in the “worst” scenario, the variable rate remains more attractive than the fixed rate of the moment. So why are you hesitating?
|Interest cost in €||Cost of interest gap
between fixed rate and variable rate
|Fixed rate||180||3.01%||$ 1243.91||43 904,50 €|
|Initial variable rate throughout the period||180||2.10%||$ 1166.62||$ 29,992.08||€ 13,912.42|
|Initial variable rate during the 1st half of the loan and the 2nd period to cap rate||180||2.10% for 90 months then 3.10% for 90 months||1166,62 € for 90 months then
1210,14 € for 90 months
|33 908,68 €||€ 9,995.82|
|Initial Floating rate unchanged for 12 months and 2 nd period ceiling rates||180||2.10% for 12 months then 3.10% for 168 months||1166,62 € for 90 months then
€ 1,246.27 for 90 months
|$ 43,372.72||$ 531.78|
This simulation is given for information only and has no contractual value. In the 3 assumptions: the variable rate CAPE + 1 is more economical than the fixed rate!
A flexible and attractive offer
This loan is adjustable after the 24th month following the full disbursement to the client’s initiative, and no cost. The customer can increase or decrease his monthly payments:
– On the rise: 2 to 10% of the previous monthly payment without study (beyond, study) and this every year
– Downwards: 2% minimum of the last maturity and within the limit of an extension of 2 years maximum of the initial term
Thanks to the postponement of the deadline, the customer has the possibility to temporarily suspend the payment of its loan maturity, free of charge, for a maximum of 3 to 12 months over the entire duration of the loan, in one or more periods. The customer has no proof or reason to provide.
Several formulas to combined for this loan
This loan can be combined with several formulas: social loans, bridging loans, home equity loans, Zero Rate Loans and can be declined in the form of loans and Social Accessions Loans.
For financing related to “sales in the future completion of the work” (off-plan), the credit begins to depreciate as of 1 release of funds. The client may choose to repay the loan directly or request a partial or full deferral.
LD Loan proposes, as soon as possible, as guarantee of the credits the “Deposit Crédit Logement” which avoids to the borrower the taking of mortgage on his property with a final cost lower than a real guarantee (no expenses of hand waived in case of resale and return of a majority of Housing Loan expenses when the loan is fully repaid).