The policyholder participates in each insured loss with a deductible. The deductible must not be secured in any other way. It depends on where the loan was taken out, whether you can credit the loan or not.
Deductibility – Construction Finance Comparison & News
The deductible is a variable to be determined in the course of the financial calculation of the property financing, which indicates the over-the-counter property of a household, after deduction of debt service, lump-sum and all other fixed liabilities (installment loans, obligatory mobile phone contracts) to cover the current living costs. The main aim of the deductible calculation is to avoid that the borrower is overburdened by real estate financing.
The amount of the deductible depends on the number of people living in a house and the local livelihood. A four-member family member should be able to live on the deductibility of all liabilities over 1200 EUR per calendar month. The excess is to be considered in the budget planning and treated as a fixed expense.
Often, too little monetary support for livelihoods is included in the calculation, leading in the worst case to a chronic financial bottleneck. The 1,200 EUR calculated in the previous example are very small amounts that require a cautious lifestyle. Since the repayment of a mortgage loan can take several decades, it is essential to compare the preferred lifestyle with the calculated deductible.
If z. If, for example, another toddler needs to be cared for, it is advisable to adjust the repayment to release additional available income. With growing uncertainty about the future of life, it is all the more important to opt for a flexible credit model that will allow for a reduction in repayments by extending or postponing maturity.
Price increases due to the general inflation rate are usually not included in the deductible.
Deductions and relationship structures in securitization transactions
In retrospect, incentive conflicts over US sub-prime mortgage securitisations were a major factor in the past US mortgage crisis. A reduction of these incentive conflicts, which may, among other things, lead to a lower rating or monitoring of creditworthiness, can, in principle, take place through a deductible, ie a share in the hedged risk types of the originally involved transaction participants.
In this context, this paper examines the background of experience between the US mortgage securitization deductible and the default risk of the underlying secured loan. The focus is on the question of whether a deductible for securitization transactions can really create an incentive for the original transaction participants to subject the securitized loans in the credit business to a more detailed credit check or to adequately supervise them after the securitization.
It also examines whether securitization transactions based on a deductible are securitized loans that are subject to higher quality credit standards. Also of interest is the question of whether certain relationship structures between the original transaction participants alone generate impetus for a more thorough credit check. Finally, standardized information on the regulatory deductibles can be made on the basis of experience.