Hypoten banka, in cooperation with the investment company Conseq, created a new product on the Czech market – the Investin mortgage. It is a combination of mortgage and fundraiser. Where from other combinations and to whom does the mortgage in the combination pay off?
For mortgage-investment combinations?
If you get a mortgage with a bank, you have to pay for years and pay off the principal. The bank will continue to return the paid pension in the form of annuity payments. You are still happy to stop the value of the mortgaged property. For most people, it’s good at first – they owe me.
Over the years, mortgage rates, although rising, are still relatively low. If we take inflation, they are even more controversial this year (inflation is not a year of mortgage rates). And if we look at the long-term appreciation of the stock markets, the appropriateness of going more firmly to the side of the unfulfilled mortgage.
The long-term performance of the stock market is around 8% ron. years, mortgage rates are around 5%. Yes, growth in the capital markets is not stable and often declines. In the long term with a suitable portfolio composition, which provide e.g. catch funds, but it is likely that the markets will grow.
So it is clear that it pays not to meet the mortgage and to invest the pension. And this is compounded by a combination of mortgage and investment. Only pay the bank for years and the pensions that would meet the principal, you will invest in the investment, where more will be appreciated (on average), not how to pay for them for years.
Who is the combination suitable for?
But combining a mortgage with an investment is far from for anyone. In order for the bank to allow the combination at all, you must be able to pay much more than with a classic mortgage – on the one hand, pay for years that do not decrease (or is still the same in the paid pension; , what the bank did so.
The combined product is thus suitable for creditworthy clients. But that doesn’t happen either. The client should have at least a basic experience with investing. In the case of dynamic funds, there are also common declines in the number of percentages over the course of a few days, during which time the client should travel and be prepared for it. Investing in conservative funds does not pay off, because their returns are less than the mortgage rate.
Investin mortgage is the first mortgage combined with mutual funds in the Czech Republic. It was launched by Hypoten banka in cooperation with the investment company Conseq, and the financial consulting company Broker Consulting undertook its preparation.
“We have been striving for the development of this product, which pushes the boundaries of the financial market a bit better for our clients, for two years,” said Jan Lener, Director of Communications and PR at Broker Consulting, who included a mortgage in his European Pension Full Plus program called Hypoinvest.
As part of Investin mortgages, it is possible to invest in the Conseq fund with the so-called real-time Horizont Invest program. The offer includes a dynamic, balanced and conservative portfolio. For all programs, there is a gradual change in the dynamic portfolio, which is risky, but pin returns, to conservative, which is less risky, but its returns are lower. The client is thus sure that even during the maturity of the mortgage there will be no deep decline in the value of his investment.
The mortgage can be drawn in vi from 500 thousand. K. The horn limit is set at 85% of the estimated price of the mortgaged property. The client must regularly save so much that, assuming a 3% increase in value, the value of the investment reaches 125% of the mortgage principal at maturity. Of course, this does not mean that the entrance cannot be you. The bank is thus sure that even in the event of a negative development, the client will have to repay the mortgage.
A mortgage can be arranged with a maturity of 5 years to 40 years for a mortgage up to 70% of the mortgage value of the property and up to 30 years for a mortgage.