After buying a car, every car owner at one time wonders where to keep it. Of course, for the first time, an open-air Parking lot or covered Parking is suitable, but both of these options are not suitable for everyone, since the same Parking lot can be located quite far from the place of residence, and the maintenance of the car in the open air will not benefit it.
Therefore, drivers with experience trying to buy a garage closer to home. However, now due to the acute shortage of available land, garages in residential areas are not cheap, and most people can only buy them on credit.
Garage loan as a target loan
The best option for purchasing a garage is to issue a targeted mortgage loan. The rate on it will be the same as on an apartment mortgage-12%-13% per annum. However, to get it, the applicant will have to work hard and collect all the necessary documents for the loan, which will be a lot.
In addition to the standard passport with an identification number and a certificate of income, he will also need to bring a paper confirming the ownership of the garage by its former owner and a certificate from the BTI. The lender will also need a technical passport of the building itself, as well as a document certifying that the land on which the garage is located has been privatized.
Why is it not easy to take out a loan to buy a garage?
Unfortunately, banks do not accept loans to buy garages with enthusiasm. This is due to the fact that the garage itself is an unreliable building. It is not uncommon for local municipalities to demolish these buildings without paying any attention to the protests of the owners. If a similar situation occurs with a garage purchased on credit, then the bank may be left without collateral, because in most cases the borrower offers this building as collateral.
Therefore, even if a financial institution decides to issue a loan for the purchase of a garage, it usually requires that the borrower give additional security, such as an apartment or car. However, in most situations, banks do not even include these loans in the list of their offers, and therefore for borrowers, the only way out in this situation is a cash loan. In this case, the debtor has the right to use the money received from the creditor at its own discretion.
Meanwhile, such a loan is considered one of the most expensive banking products, and therefore the desire of borrowers to reduce its cost becomes clear.