As a co-owner, so far it has been frustrating not to be able to borrow anything other than a cooperative housing loan to finance the home. In recent years, however, new opportunities have emerged for members in the form of a mortgage loan for cooperative housing.
Record mortgage andelsbo equal
As a shareholder, you can now get loans that resemble a mortgage loan through your cooperative housing association to your cooperative home. So if you have an expensive housing loan, then you can advantageously exchange it with a mortgage loan through the cooperative housing association, so that you get a more stable and cheaper loan. A housing loan is in principle a bank loan and therefore follows the market rate. That means it can get incredibly expensive if interest rates rise and you don’t have a fixed rate loan. At the same time, this also means that if interest rates fall, it may become cheaper. But if the economy is not for the big fluctuations, it can be a solution to get the mortgage-credit-like loan with the cooperative housing association, as it is the cooperative housing association that takes out the loan and lends the money on. That is, the cooperative housing association has the real mortgage loan while you get a mortgage-like loan.
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How does mortgage credit co-operate with housing cooperative?
If you want to change your housing loan to a mortgage loan, it is your cooperative housing association that takes out the mortgage loan for your mortgage on your cooperative. And with this scheme, you can completely avoid borrowing money from the bank. On the other hand, you need to get hold of the board of your cooperative housing association to hear about the possibility of raising the mortgage loan.
Mortgage loans for cooperative housing are not always an option
As a shareholder, you cannot always be sure that the cooperative housing association thinks that it is a good idea to collect a loan amount corresponding to the full market value of the cooperative housing. The cooperative housing association has to take into account any price drop on the housing cooperatives in the association. Such a decision must also be endorsed through a general meeting and possibly written down in the association’s articles of association. If the association is not on the idea, fortunately there are other possibilities. Some banks now also offer mortgage-like conditions on loans to co-owner owners, so the loan is more stable.