The new Pafilia internal financing scheme, which is available on all ready properties, enables clients to borrow up to 50% of the property value. Additionally, clients are able to take delivery of the property once a 50% personal contribution has been paid. The borrowed amount is subject to a fixed interest rate of 6.5%, capitalised every six months, and is repayable in monthly or quarterly installments over a five year period. Clients benefit from many savings, such as no loan arrangement fees, saving up to 2,5% of the property value (mortgage fees are 1% and arrangement fees 1,5% of the property value), no life insurance requirements (saving up to 0.075% per month on the loan balance) and no early settlement fees.
Please find below a comparison of the Pafilia internal financing scheme vs. a bank loan, followed by a hypothetical calculation:
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PAFILIA INTERNAL FINANCING
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BANK LOAN
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THE BENEFITS OF PAFILIA FINANCING
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Documentation & clearance
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up to 1 week. no age limitation. no documentation necessary.
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approx 3 months. documentation required: tax and banking details, account statements, references…
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simple and efficient
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Cost of credit
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0%
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2.5% of loan value
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significant saving
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Interest rate |
6.5%
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6.5%
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market rate
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Variable/ fixed rate
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fixed
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variable
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no variable rate risk
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Accrual per
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capitalised every 6 months
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Capitalized every 6 months
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industry practice |
Minimum loan term
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1 year
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10 years
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convenience of short-term loan
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Early settlement fee
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0%
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5% of the annual payments
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no penalties enable significant saving
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Late payment fee (2-6 months)
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9%
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12%
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lower fee compared with a bank loan
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Late payment fee (6 months +)
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9%
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14%
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late payment fee remains constant, unlike bank fee
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Life Insurance
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Not necessary
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0.075% per month
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significant saving
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Repayment Frequency
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monthly or quarterly
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monthly or quarterly
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Flexible payment schedule
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Maximum loan duration
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5 years
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30 years
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attractive short-term financing solution
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Minimum initial contribution
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50%
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30-40%
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Hypothetical calculation:
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PAFILIA INTERNAL FINANCING
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BANK LOAN
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Credit amount
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€ 200,000
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€ 200,000
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Credit period
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5 years
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10 years (repaid over 5 years)
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Interest rate
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6.5%
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6.5%
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Total interest payable
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€ 35,366
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€ 35,366
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Cost of credit
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€ 0
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€ 5,000
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Early settlement fee
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€ 0
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€ 8,149
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Life insurance
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€ 0
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€ 4,500
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Total cost of financing
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€ 35,366
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€ 53,015
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