Banks for 110% financing

2017-03-02 14:03:59

Of course, it is equity, just as 1000 euros are equity. And of course, one must also consider reserves (and buffers).

An example: Construction costs 400,000 euros, equity 100,000 euros => loan-to-value ratio 75%. If 115,000 euros equity are available, the loan-to-value ratio decreases to 69%.

2017-03-02 14:14:20

I would not be bothered by the statement that there is no significant equity in terms of security for the financing. But first, there is a difference whether I still have to save the 15k AND the significant equity, or whether I already have the 15k. Secondly, 15k is not nothing; this statement is simply unobjective. 15k is a fraction x of a required volume y.

2017-03-02 14:27:53

I wouldn’t be bothered by the statement that there is no significant equity in terms of security for the financing. But first of all, there is a difference between having to save up the 15k AND the significant equity, or already having the 15k. Secondly, 15k is definitely not nothing; this statement is simply unobjective. 15k is a fraction x of a required volume y.

It’s not about the factual consideration (of course, 15k EUR is money… just like 1 EUR or 10 cents is money…). Only in the context of a construction project (400k? 500k?) EUR, talking about 15k equity… I find that silly. Next, someone will probably come along and say: Even 50 EUR is equity. At least with that I can buy 1.5 tiles or something like that…

2017-03-02 14:28:54

Then who do they belong to?

[x] Topic missed..

2017-03-02 14:41:06

Okay, but you wrote that 15k is not only not equity, but generally "nothing".

2017-03-02 14:44:57

Okay, but you wrote that 15k is not only not equity, but generally "nothing".

Did I? That is of course nonsense...15k is of course a lot of money. No question. I was only concerned about the designation as equity.

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Banks for 110% financing

Bieber0815

Knallkörper

Steffen80

Steffen80

Knallkörper

Steffen80