New regulations from 21.3.16 for loan issuance

Hello experts,

could someone from the experts please write something more detailed about the changed credit conditions from 21.3.16?

It is surely a topic that interests many.

Sylvia would be happy about that

The short version is that borrowers have received various rights to information and disclosure.

The result is that many banks avoid the effort and simply no longer offer certain things like foreign currency loans.

In addition, various restrictions are imposed on banks regarding material creditworthiness.

Where it was once possible (for example, due to many years of experience) to approve tight financing, the bank today must already reject at the slightest doubt if the computer says so.

What I do welcome, however, is a clear separation of collateral. Broad purpose declarations for real estate for overdrafts and consumer loans are a thing of the past. Explaining details would likely lead to explanations spanning many pages.

Two important things: The residential real estate credit directive applies to consumer financing of real estate regardless of the collateral and to all other financing secured by real estate.

Since I am very interested in these matters for certain reasons - is there any freely accessible detailed information somewhere?

Have fun reading.

Link does not work. Therefore, check the Bundesrat under [Drucksache 359/15]

Linked PDF of the Bundesrat.

Google can find it too.

Ouch, the banks will probably have to check everything down to the dots above the i or ä, and some people will probably have a problem, I'm afraid.

Yes, that's exactly what it will come down to. The rules for debt service capacity are strict, will probably be implemented technically everywhere by the computer, and calculated with flat rates for living expenses, and if that doesn't fit, it's game over. Partly okay like that, but for some, where soft secondary factors mattered, it will be dark gray.