Loans for large families
In contrast to the past, the bank or the financing partner no longer have to expect a higher debt risk or a lower credit rating for the loan for large families because of the higher number of children. There are now many family policy benefits such as high child benefit, parental allowance or even increased Riester support for large families. This means that even a large family can really step on the gas financially. However, there are a few things to consider when granting loans to large families.
High revenues are offset by high costs
If you want to calculate your monthly household surplus and want to see for yourself whether the loan amount or monthly installment is easy to manage, then you should not use the usual average values for a two-person household, for example. Therefore, estimate the monthly expenses and take into account in particular the higher expenses for children’s clothing, school supplies and toys – and don’t forget the groceries.
The higher income can be found on the pay slip, because this is where the better tax bracket with several children comes into play. In addition, please do not forget the child benefit payments from the child benefit fund. This gives you a complete overview of your earnings and allows you to set the best monthly rate.
Long-term loans have to be valued differently
However, when taking out or granting very long-term loans, you should also make sure that at some point the child benefit no longer flows and that they will start their own training or study. Therefore, when calculating, you should make sure that the income situation for large families will change significantly over time.
In addition, the living situation should be designed according to the size of the family. If in doubt, a slightly larger living space is preferable to a more central location. However, with the loan for large families, care should also be taken to ensure that mortgage financing is still possible in a sprinkle that gives access to a good primary school.
The loan for extremely large families is therefore based on a much more complex calculation with several, changing factors and deviates significantly from the calculation for a 2-person or 4-person household.