A couple of weeks ago there was an interesting news that Govanza should start with mortgages. Should be interesting to see how it works for them as it is a slightly different mortgage compared to the other lenders.
Aimed at those who already have a lot of money
In short, you can say that the mortgage that Govanza has is only aimed at those who already have a lot of money. Namely, there will be 3 million in savings capital before. The loan extends only to 50% of the value of the home and it should be between USD 1 and 10 million. Since the requirements for borrowing are very tough, there should also be some great advantage of borrowing from them and that is the price. The interest rate is on the repo rate plus 0.99%. Which means that it is currently 1.99%, which is about 1% below the other lenders.
Borrow money with such good conditions
Of course we could all borrow money with such good conditions. But unfortunately, I or most others have not saved so much money that we are up to date. But that’s just something that I can blame myself for in my eyes. And why shouldn’t people with really good finances get the opportunity to borrow with really good terms when they actually have a very high credit rating? I’ve read people who call it upper-class loans and maybe it is. But, as I said, why should a lender be forced to lend on the same terms to less creditworthy customers.
Should be interesting to see how things will go with these loans in the near future. Maybe it can lead to other more specialized loans which should generally be good.
High collateral and this means that the bank can run on low interest rates
Is it good that Govanza gives in to mortgages, but they really only target people with a lot of money. It is an advantage to be rich and it is certainly the same when you want to borrow. However, loans of this kind have a high collateral and this means that the bank can run on low interest rates.