When is the home loan contract allocated?
After the savings phase, the time has come: The building society savers receive a message from the building society that their building society contract is ready for allocation. But he still does not have immediate access to the home loan. Because the allocation is not automatic and immediate, but gradually among all building society savers who have reached this phase – it can extend over a period of three to nine months.
When the cash register actually allocates the building society savings contract also depends on how much money is available on certain allocation dates. This is primarily due to the customers’ loyalty to savings and repayments and the amount and quantity of new home savings contracts. For building society savers, this means that anyone wishing to use the building society loan to build or purchase a property must take these waiting times into account and should not plan the loan until the contract is ready for allocation and the funds will be available shortly.
The building society also checks creditworthiness
The allocation maturity says initially also only that the savings customers can switch from saving plans in the loan phase. It does not automatically mean that the building society savers receive a loan from the building society. Because just by concluding the building society contract, the building society saver does not secure a right to a loan. First, like every borrower, he goes through a credit check. And the building society will do this after the savings phase. Even if the saver has paid in diligently over several years, he must provide the lender with detailed evidence of his solvency – in the form of proof of income, equity documents, statements of planned personal contributions, etc. – or provide appropriate collateral.
If there are discrepancies in the financing planning or if the loan is too risky for the building society, the building society may refuse to pay the loan in whole or in part. This is the case, for example, if the home saver has such a low income that he would have to use more than half of his income to repay his real estate financing.
Choose the right time for the loan
The home saver should carefully consider the time of acceptance of the allotted home savings contract. Because as soon as he has declared the acceptance, interest may already be due. This is the case with many tariffs. For example, the building society savers either pay interest on the amount of the loan called up , or they make provisional interest. The latter charges the cash register for the provision of unpaid loan funds from an agreed point in time, which, depending on the provider, is reached after two months or six months, for example. The building society demands this as a kind of compensation because it borrows the loan amount from its customers or other banks.
If building society savers do not need the money immediately because the start of construction will only take a few months or the new condominium is not yet ready for occupancy, they should wait a long time before approving the allocation. To do this, it is sufficient not to take any further action, but simply to continue paying the agreed savings rates.