close Loan? Five tips!

Tip 1: Always compare debt balance insurance
Who closes a mortgage loan is not required to take an outstanding balance with the same lender. To ensure the best value for money , you can offer the various lenders and insurers better compare thoroughly. Most insurers offer a simulation on their website, so you will know where you stand. Compare also the total package next to the price. The outstanding balance provides the best options? How flexible are the formulas?


Tip 2: A tax benefit or maybe not?
If you want a tax break out of your outstanding balance? Opt for an outstanding balance on one head , such as the Hypo Protect Classic formula. In the cheaper formula with two insured within the same policy ( Hypo Protect 2win ) the premium payments are not tax deductible ! Please note that in some cases it is better not to opt for a tax benefit. Read more about it in our article about the tax benefits of balance due insurance !


Tip 3: observe with percentage coverage!
If you have two suited, both partners can have the full capital guarantee (100%). In that case, will be repaid at death the sum insured for 100% thanks to the debt balance insurance, and does the surviving spouse not to solve more down. Often, however, opted for a 50-50 ratio whereby each partner ensures half. A 50-50 coverage is often put into the perspective of wage increases in the offing, a new job with better conditions, greater financial reserve as you age, etc. Please note that you opt for a 50-50 ratio, it must at death the surviving spouse still half the monthly repayment (or half of the total sum insured) take on. Would you sit completely safe? Then you should opt for a 100-100 ratio.


Tip 4: single premium or spread payments?
When debt balance insurance you have the opportunity to complete the payments in one go ( single premium ) or spread them over two thirds of the term. A single premium, the price formula can be in case of taxation at the end of the year.


Tip 5: Fixed rate or variable rate?
In an outstanding balance, you can choose from a fixed rate or a variable rate . The slightly more expensive fixed rate provides the most security , since the rate is guaranteed for the entire duration of the contract . When cheaper floating rate is a rate increase after the first three years may for example by a dramatic increase in mortality rates.