i gave out a large loan to a 3 star general

[Barang_doa_slae]

Even banks charge about 1.5% per month for mortgages secured by hard title with a 40% deposit. Relatively low risk (provided the valuations are not corrupt) for a decent return, which is almost 80% per annum on a compound basis).

That sounds like a lot.
I borrowed to a local bank at 9% per annum which seems already very expensive considering that housing mortgage can be found as low as 1% in the west but is in line with the deposit earnings.
Also advertised fixed interest rates really aren't, since the banks put a provision that they can hike the rate at their discretion even if I have yet to meet someone to whom they did.

[Khmerhamster]

Even banks charge about 1.5% per month for mortgages secured by hard title with a 40% deposit. Relatively low risk (provided the valuations are not corrupt) for a decent return, which is almost 80% per annum on a compound basis).

That sounds like a lot.
I borrowed to a local bank at 9% per annum which seems already very expensive considering that housing mortgage can be found as low as 1% in the west but is in line with the deposit earnings.
Also advertised fixed interest rates really aren't, since the banks put a provision that they can hike the rate at their discretion even if I have yet to meet someone to whom they did.

Can you get 1% mortgage deals now in the west (I'm talking about UK-maybe other countries are different?)
I wouldn't have thought so. Maybe 8-10 years ago but surely not now.
If they are available I imagine they are only available for an introductory period for 1-2 years after which it'll revert to 4-6% unless you want to remortgage with another company (and then get charged redemption fees and set-up fees). I imagine these attractive rates are also only available for low LTV borrowing.

[Barang_doa_slae]

Even banks charge about 1.5% per month for mortgages secured by hard title with a 40% deposit. Relatively low risk (provided the valuations are not corrupt) for a decent return, which is almost 80% per annum on a compound basis).

That sounds like a lot.
I borrowed to a local bank at 9% per annum which seems already very expensive considering that housing mortgage can be found as low as 1% in the west but is in line with the deposit earnings.
Also advertised fixed interest rates really aren't, since the banks put a provision that they can hike the rate at their discretion even if I have yet to meet someone to whom they did.

Can you get 1% mortgage deals now in the west (I'm talking about UK-maybe other countries are different?)
I wouldn't have thought so. Maybe 8-10 years ago but surely not now.
If they are available I imagine they are only available for an introductory period for 1-2 years after which it'll revert to 4-6% unless you want to remortgage with another company (and then get charged redemption fees and set-up fees). I imagine these attractive rates are also only available for low LTV borrowing.

I would think that in Europe at least, typical mortgage rates were higher 10 years ago than they are now, probably in the 3 to 4% bracket at the time.
This year for the very first time, Germany is being paid when issuing obligations and France, despite running a huge budget deficit can also borrow at less than 1%.
From what I hear, good credit rating home buyers with at least 30% equity can borrow for about 1.3% insurance included on 15 years terms.

[Khmerhamster]

Even banks charge about 1.5% per month for mortgages secured by hard title with a 40% deposit. Relatively low risk (provided the valuations are not corrupt) for a decent return, which is almost 80% per annum on a compound basis).

That sounds like a lot.
I borrowed to a local bank at 9% per annum which seems already very expensive considering that housing mortgage can be found as low as 1% in the west but is in line with the deposit earnings.
Also advertised fixed interest rates really aren't, since the banks put a provision that they can hike the rate at their discretion even if I have yet to meet someone to whom they did.

Can you get 1% mortgage deals now in the west (I'm talking about UK-maybe other countries are different?)
I wouldn't have thought so. Maybe 8-10 years ago but surely not now.
If they are available I imagine they are only available for an introductory period for 1-2 years after which it'll revert to 4-6% unless you want to remortgage with another company (and then get charged redemption fees and set-up fees). I imagine these attractive rates are also only available for low LTV borrowing.

I would think that in Europe at least, typical mortgage rates were higher 10 years ago than they are now, probably in the 3 to 4% bracket at the time.
This year for the very first time, Germany is being paid when issuing obligations and France, despite running a huge budget deficit can also borrow at less than 1%.
From what I hear, good credit rating home buyers with at least 30% equity can borrow for about 1.3% insurance included on 15 years terms.

I don't know about the rest of Europe - I can only speak for the UK but 10 years ago I got a BoE base rate tracker mortgage (base rate plus 0.15%) at 90% LTV.
I am currently paying 0.65% PA. It's the cheapest money I'm ever likely to borrow.

You can't get a mortgage deal (in the UK) close to touching those terms nowadays. The bank is actually losing money on mortgages sold at these rates.
It's only recently that banks are again willing to consider granting borrowing applications approaching 90% LTV but at rates around 5% plus.

[LaudJohn]

As you know Lucan, 20-25% in the informal economy, per fuckin' month, is not unusual.


The lovely MFIs, who can afford to pay their investors 10% per annum, paid monthly, are not really that much better. But MFI is a sweet term and will attract investment from whiney European funds. .

I thought it was 10% application fee and 10% per month. Wow that is such a better rate to get.

Interesting how interest rates in the KOW seem to be quoted on a monthly basis (in simple terms), whereas in the real world they are quoted on an annual basis.

Also the monthly rate in the KOW is similar to the annual rate in many western countries.

Yes the traditional money lenders appear to have moved into shiny new shopfronts and have re-branded themselves as MFI's. Far more respectable than operating out of your house or market stall.

Not a bad business model.

Even banks charge about 1.5% per month for mortgages secured by hard title with a 40% deposit. Relatively low risk (provided the valuations are not corrupt) for a decent return, which is almost 80% per annum on a compound basis).

Actually, I believe a 1.5% monthly interest rate equals 19.56% per annum on a compound basis, however a 10% monthly rate would equal a 213.84% annual interest rate...

For the 6.5% monthly, if compounded, would equal 112.9% annual interest rate...

yes.

I am glad you spotted my deliberate mistake. 5 %per month would be about 80% per annum. I was interested to see how many could spot and calculate the real difference.

[logos]

From what I hear, good credit rating home buyers with at least 30% equity can borrow for about 1.3% insurance included on 15 years terms.

I was offered 1,25% for a new loan a couple months ago. Revised terms (on yearly variable loans) are 0,5-0,8% pa.

[RobW]

From what I hear, good credit rating home buyers with at least 30% equity can borrow for about 1.3% insurance included on 15 years terms.

I was offered 1,25% for a new loan a couple months ago. Revised terms (on yearly variable loans) are 0,5-0,8% pa.

1.25/.3% In Cambodia? Per month, right?

[Khmerhamster]

From what I hear, good credit rating home buyers with at least 30% equity can borrow for about 1.3% insurance included on 15 years terms.

I was offered 1,25% for a new loan a couple months ago. Revised terms (on yearly variable loans) are 0,5-0,8% pa.

1.25/.3% In Cambodia? Per month, right?

Yeah, I'm confused by Logos' statement.

Normally the introductory period is lower than the revised terms. I can't remember seeing any offer (or can't really understand) an introductory offer which offers worse introductory rates than what it reverts to after the initial period.

Unless he was confused and was looking bank savings account rates rather than borrowing rates.

Which country was this in Logos? secured/unsecured? Term?

[logos]

Sorry it was in reply to khmerhamster about UK rates. What I mentioned was per year, for a secured loan in Belgium, 10 to 15 years maturity, which was in line with his figures, but of course not applicable to Cambodia.
Mandatory insurance is on top and sets you back about 2% of the principal. Still not bad overall.

[jackrossi]

Finally the loan has been fully paid off, principal and interest.

[logos]

I know who Scoobs should call onto to sponsor the next 440 meeting

[phat kunthea]

Hopefully the 3 Star General can come a long too and share his insight to another Italian Job.

[walkjivefly]

Finally the loan has been fully paid off, principal and interest.

And you're still alive to talk about it. Congratulations.

Or you're being coerced, or are dead and being impersonated.