The smoothed loan, or loan with repayment stages, is a form of amortizable credit. In this, it is also one of the various types of mortgage that a borrower can claim to finance his home acquisition project. This land loan makes it possible to contract a mortgage while pursuing the repayment of advance credits, and preserving an equal debt throughout the amortization period. explanations
How does a smoothed loan work?
We speak of a smoothed loan or a landing loan in the sense that this option makes it possible to “smooth” (arrange) a classic amortizable mortgage when the borrower already has repayments in progress, so as to pay only a monthly payment single and global rather than several separate monthly payments.
Let’s say that a borrower wishes to take out a mortgage to acquire a principal residence. At the same time, this borrower is already repaying two loans – a vehicle loan and a consumer loan – which weigh heavily on his debt ratio. The smoothed loan then allows him to reduce the share of amortization of the monthly payments to be reimbursed for the mortgage over a given period, until he has settled his outstanding loans and can therefore dedicate his entire debt capacity to repayment of the mortgage.
Example: the monthly mortgage payments will start at 500$ , then increase when the first loan is settled (passing to 750 $), and again when the second loan is finished – hence the name “stage loan”. The borrower will then reimburse $ 1,000 in monthly payments up to the balance.
At each level, the monthly payment increases and the amortization of capital increases. This amortization is enabled by an reassessment of the upward monthly payments on the smoothed loan.
When can you apply for a landing loan?
The smoothed loan is very useful for a borrower who does not wish to handicap his debt capacity because of current loans.
However, this is not the only reason why one can apply for this type of loan. The landing loan applies equally to first-time buyers who, in addition to their mortgage, must take out a second loan – for example a regulated loan (1% employer) or a loan to carry out work.
Be careful, however: if the smoothed loan allows you to calmly approach the delicate periods of repayment, in the case of additional loans, this advantage often has a high cost. The granting of smoothing by the bank is in fact accompanied by substantial interest rates. Before making a decision, calculate your loan smoothing with a mortgage loan simulator.