If you are looking for a new apartment, you know that the rental costs will not stay the same. A security deposit is due for the landlord when the rental contract is concluded. In addition, there is the commission for the broker if the apartment was arranged through them. These are costs that not everyone has at hand. What remains is to go to the bank to apply for a loan.
Use of the overdraft facility or borrowing – which makes more sense?
There are two ways to take out a loan for deposit and commission. However, it does matter how much these costs actually are. Deposits and commissions are based on the basic rent. As a rule, the landlords require two to three basic rents as a deposit. The commission for the broker is usually the same. If it is a small one-room apartment with a rent of around 300 dollars cold, it is worth considering using the overdraft on the checking account.
This makes sense if a higher amount of money is expected in the near future (for example Christmas bonus, a high commission for sales). This has the advantage that the borrower is flexible with the repayment, because fixed installments are not required here. However, if the rent is much higher, only a loan is usually an option. Here the borrower must schedule fixed monthly installments for the repayment.
Are there other ways?
The legal regulation states that the landlord must agree to payment in installments for the commission. The situation is different for brokers. It is a matter of negotiation whether the broker agrees. After all, they have to live off their commissions. Those who shy away from the bank can also try to get a loan for the deposit and the commission in the private sector. The Smava and Auxmoney platforms are popular.
Here it is private individuals who lend the money. The banks are left out. The special thing about this type of lending is that the loan seekers determine the interest rate. The donors only have to agree.
The offers of the online banks are also interesting. There is no personal conversation here with a bank advisor that many people shy away from. The credit request happens online. The purpose is irrelevant, because online banks do not ask. Such a loan for the deposit and the commission can definitely be worthwhile, because the interest rates at online banks are usually lower than at branch banks.