Credit union loan to buy house?

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Hi guys,

I am in a situation where I want to purchase a house for €40,000. I have €20,000 in savings but I need another €20,000 to up the difference.

Does anyone know if it is possible to get a loan like this from the Credit Union? I know the loan would be subject to my personal situation but generally speaking is this possible?

Thanks,
Cian
 
Yes, it's certainly possible.

But it will be very expensive. Depending on the Credit Union you borrow from it could be between 6% and 12% APR (or even higher if they require you to keep money in shares.)

Having said that, I don't think that the banks give mortgages for just €20,000. But worth checking. The rate could be as low as 3% on a mortgage from a bank.

Brendan
 
Quite possible depending on your credit union, the bigger ones could definitely do this and would use the property as security so you could avail of the secured loan rate which would be lower than the normal rate.
 
If it's like my Credit Union they will triple your savings i believe.

So you leave a 13.5k deposit and you get 40k over 5 years. You pay back 50k. 800 per month. The get the 13.5k back when its paid off.

Thats a lot of interest. If you have a job why would you not get a mortgage, pay back less when you cant and more when you can.

Either way i assume you will need a job.

Does Not make a whole lot of sense to me if you can get a mortgage with much lower rates and payments.

You won't have the option of paying off early to reduce interest paid as Credit Union lumps all the interest in front.

I would have thought it would be better to have a mortgage, pay 800 a month off then take a break over the christmas.
 
Secured loans are different, it's not a multiple of savings etc, also certainly not all credit unions lump all the interest on up front and you can certainly pay off early without penalty. Credit Unions differ but most are a bit better than that.

A secured loan on a property is more like a mortgage than a bog standard loan. The amount is quite probably too small to get a mortgage on from the main banks whose minimum is around 50kish.
 
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