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Every year at the start of the study, aspiring students desperately try to find cooperative housing in the big cities. Especially in Copenhagen, where there is only a dorm room for every eighth student, it is attractive to buy your own cooperative housing. Therefore, several banks now offer a co-operative housing loan to students, but one must look out for it before borrowing. And the interest rates are different, so find the cooperative housing loan that best suits your finances as a student.
Housing loan students
Are you a student and do you have a reasonable economy? Then you may have to buy a cooperative. The banks are queuing up to offer the best and cheapest housing loan loans to students. The current situation in the housing market, makes more experts in housing and economics recommend to own instead of renting, while at the same time the students are ensured a residence during their studies. Although a student housing loan does not differ from other housing loan loans, students are often surprised at the formation costs of the loan. It is therefore important to carefully examine the market for cheap housing mortgage loans in order to minimize costs and obtain the absolutely cheap housing loan .
The cheapest housing loan for students
It is quite normal that there are different fees associated with admitting a student housing loan. It is therefore not necessarily the loan with the lowest interest cost, which is the cheapest loan in the end. Instead, the annual percentage rate of charge (APR) should be considered when comparing housing loan loans to students from different banks. When looking at the APR, all costs of the creation and during the term of the loan are included, while taking into account when interest, installments, etc. must be paid. It can also be a good idea to use the monthly service as a guide. Like the APR, the service gives a more accurate picture than the interest rate. The monthly allowance means that you must pay monthly expenses, including both interest and repayments.
At Adam Bede, you can get three free offers for the low-cost student housing loan for free and without obligation. Then you can easily compare the offers on ÅOP and choose the cheapest loan.
Loans for cooperative housing as students
As a student, one’s income is not so high during the study period, so it is encouraged that one does not sit down for “tight” financially. A co-operative dwelling is therefore a good solution for students, both because they are usually cheaper than owner-occupied homes and in addition, it should rather not be paid out. It can be difficult as a student to save up for a payout when you only have SU and a possible student job to do well with.
You can get a housing loan with a maturity of 30 years. A 30-year loan is a good student home loan for students when studying. The co-operative housing loan is distributed over 30 years, which is why the monthly benefit is reduced and this can be an advantage when the income is low during the study period. When the study period is over and one’s income has increased, it will be a good idea to reschedule the loan and thus shorten the term of the loan. We have made a calculation of what the monthly benefit is for Arbejdernes Landsbank on a 30 and a 20-year cooperative housing loan of DKK 1,000,000 respectively. DKK 1,336 is different and this is an amount that could be felt as a student.
When you buy a cooperative while you are a student
As a student, it is important to examine some conditions before making a final decision on the purchase of a cooperative. It is strongly recommended that you seek advice from a lawyer to investigate the association’s finances. The DKK 5,000 – DKK 8,500 it costs to get a lawyer to see these cooperative associations through can be given very well. The current mortgage loans that the cooperative has, you also take responsibility for when you choose to buy into the cooperative housing association. If the association has a bad economy, you become part of a bad economy.
Once you have found your cooperative you want to buy, you deduct each month from your debt, and in addition you pay a home tax also called the benefit to the association. The monthly housing tax often indicates whether the association’s finances are good. For a high housing tax, it is typically poor and low, so it is good. The high tax may also be due to the fact that the association is newly founded and they have a large debt that must be deducted at first. The monthly housing tax may increase if, for example, the association has not spent enough money on maintenance. You should therefore investigate the association’s future plans for maintenance and whether enough money has been allocated to them.
Last but not least, it may be a good idea to read the articles of association thoroughly so that you get familiar with the rules for renovation, renting etc. It may be that you end up in a situation where you would like to sublet your apartment in a period, but be aware that it is not all associations that allow this. It could also be that you have made yourself considerations regarding renovating and here there may also be some rules that can slow down your future dreams. Therefore, putting cold water in the blood before taking the final decision – a miscarriage can cost you dearly.
When buying a cooperative, you should:
- Get a lawyer to review the economy of the cooperative housing association
- What is included in the joint expenses in the association
- Which renovation plans does the association have – eg replacement of windows, new roof, trunks, etc. Such projects can lead to rent increase
- Rules for subletting, parenting and renovation in the association.