Question 1

My application for credit has been denied. How long do I have to wait to reapply?

nathalie · Accepted Answer

You must wait three months and one day to reapply.

Question 2

How long does it take for the borrowed funds to be deposited into my account?

A H · Accepted Answer

Once your credit contract is signed in our offices, your money is paid into your bank account within 24 hours. If you are a resident of Luxembourg, you will have to wait 48 hours and if the amount of the credit is superior to the sum of 25.000,00 €, a delay of 3 working days is required.

Question 3

What are “conditions precedent”?

Accepted Answer

These are clauses indicated in the sales agreement which condition the birth of the legal effects of the loan / mortgage credit contract on the fulfillment of one or more conditions stipulated concretely in the notarial deed. The condition being in this case obtaining the agreement of the bank. It is therefore above all a protection for the future buyer in the event that his credit request is refused by the banking organization.

Thus, when you sign your sales agreement, it will be subject to the suspensive condition that you obtain your loan/mortgage credit within the time limit set when signing the sales agreement before the notary or with the real estate agency.

Concretely, this means that if you do not obtain your loan / mortgage credit within the agreed deadline, it is void (cancelled) unless you obtain an extension of the deadline to obtain your loan / mortgage credit.

In this case, things are returned to their original state and each party to the sales agreement is released from their obligations. The seller could thus agree to sell his property to another candidate buyer who would sign a new notarized sales agreement.

At Crédit Populaire Européen, we are committed to giving you a quick response so that you can notify the seller as quickly as possible.

Question 4

What is mortgage discharge?

Remy · Accepted Answer

First, let us clarify that the mortgage is the guarantee which allows a bank to cover itself in the event that the borrower is no longer able to repay his loan. In fact, the borrower could not sell the property without obtaining approval and the release of the mortgage.

The bank has the right to cancel the credit in the event of non-payment, to have the property sold during legal proceedings and to recover the balance of its debt from the proceeds of the construction of the building.

On the other hand, in the event of early repayment of your mortgage loan, the notary is required to request the release of the mortgage. Release is a legal act where the bank certifies that the borrower has fully repaid their loan.

This release is done by notarial deed which therefore generates notary fees. In practice: the release of a mortgage is only essential if you decide to sell the building. Otherwise, just let time pass to get the 30-year period to expire. In this case the mortgage will disappear automatically but this time without any costs.

Question 5

I am unemployed, can I borrow?

Accepted Answer

In principle, if you are unemployed you cannot borrow because your unemployment benefit cannot be seized unless you have a guarantee, that is to say a person who agrees with you and who has seizable income. . In addition, if you own an investment property and have rental income, you can borrow under a mortgage loan.

Question 6

How long is the mortgage loan?

Accepted Answer

The duration of the credit can be spread over a period of 10 to 30 years depending on the age of the borrower(s) and the amount of the loan.

Over this duration, two cycles can be distinguished:

the “depreciation(s) of capital” i.e. repayment of capital to the credit provider. In a word, the repayment of the amount lent to you.
the “interest” that must be paid by the borrower.
It is always in your interest to repay the capital as quickly as possible and therefore to favor a fixed rate mortgage loan/credit for the shortest possible duration.

For what ? Because the more capital you repay, the less interest you will have paid upon closing the loan/mortgage credit contract.

Question 7

My co-borrower has just passed away. What are the consequences for my current loan?

A H · Accepted Answer

The credit continues and must be supported by the living borrower. The borrower must contact us and provide us with the death certificate. If the borrower had death insurance, then the insurance will cover all or part of the insured loan. If there is no death insurance, then the living borrower must bear the cost of the loan alone.

Question 8

I don't have much income. Can I take into account my family allowance to increase my borrowing capacity?

nathalie · Accepted Answer

No.

The law does not allow child benefit payments to be used for credit purposes.

My application for credit has been denied. How long do I have to wait to reapply?

My application for credit has been denied. How long do I have to wait to reapply?

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