CashFree Real estate loan
An investment in loans that are secured directly by a real-estate, by a direct record of pledge on the title deed in the first place. In addition to the safety, the investment also offers an attractive return and the possibility of getting an investment bonus.
How does it work?
The CashFree Real estate loan is used to finance housing. The loan can replace a bank mortgage, or it can be used as a bridge loan, to help clients to get money for the time until they settle their new home. To put a minimum burden on the borrower's monthly budget, the repayment amount can be calculated for a period of 30 years, but only up to the borrower's age of 65 years. However, the maturity period for investors is a maximum of 3 to 5 years, when it is refinanced (part of the principal is therefore due in the last installment, when it is refinanced with a new loan). Another advantage for a borrower is that for the first year they can pay only interest for the loan (the same was as it is with CashFree Housing loans).
Investors can resell these loans on our Secondary Market at any time, giving them the best possible combination of high earnings, security, and flexibility!
The Real estate as a security
In addition to standard requirements regarding borrowers’ quality, their income and expenses, the key condition for obtaining the loan is an ownership of a real estate without encumbrance. This property serves as security and a lien in favor of the investors on Žltý Melón and it is directly recorded on the title deed in the first place.
The maximum amount of the loan depends on the value of the property. The borrower must document the value by an up-to-date expert opinion. Currently, a maximum loan limit is set at 6 0% of the property's value, i.e. LTV indicator (loan to value). Investors can find the value of the property, the LTV value, the location of the property, as well as photos of the property in the details of the auction.
How is my investment protected?
In addition to the real-estate pledge, there are also other ways that we help protect your investment.
- Verified value and quality of the property: A condition for obtaining a loan is an up-to-date expert opinion on the property. At the same time, loans are not financed up to the full value of the property, but the current minimum deduction is applied. The value of the property, as well as the value of the LTV (Loan to vale) parameter is listed in the financing auction.
- Checking the creditworthiness of borrowers: Even though the loan is secured by a real estate, each borrower must undergo a full check at Žltý Melón, their income, expenses, ability to repay the loan are checked together with all other requirements to ensure the quality of the borrower and the application.
- Borrowers with a budget: Even though these loans are secured by real elstate, we still carry out rigorous checks on all borrowers to ensure that they have a robust and stable financial situation that will enable to them to meet all their financial obligations, including their new mortgage and loan from investors on Žltý melón.
- Insurance of the ability to repay the loan: A condition for obtaining a loan is also insurance contract with our partner insurance company where the ability to repay the loan with coverage of all potential risks resulting from the insurance package A.
- Real estate insurance with vinculation: A condition for obtaining a loan is also the insurance of the real estate, which serves as a security, while the insurance is vinculated up to the amount of the loan in favor of Žltý melón investors.
How much can I earn?
Interest rate of the loan depends on its duration in a similar way banks have with a fix period of mortgages. Actual financing conditions and the possibility of obtaining an investment bonus can be found directly on Auctions page - CashFree loans section.
How can I invest?
You can invest in individual CashFree Real estate loan auctions in the same way as you would invest in any other loan auction on Žltý melón. You can also modify your auto investment settings to make sure you don't miss out on any new auctions as they become available, so you can make the most of this great limited time bonus!
Auto invest makes things easy! Simply decide how much you want to invest in each CashFree Real estate loan and the rest is taken care for you . The investment fee for these loans is just 0.33% (minimum of 0.01 EUR) which is deducted automatically from the monthly repayments made to you by the borrower.
Don't have an account on Žltý melón? No problem, simply fill out our quick registration form and start earning more from your savings!