Credit for commission
Borrowing for commission payments primarily relates to brokerage commissions for the mediation of a property for rent or purchase, since companies can usually pay sales commissions to their employees or to their freelancers from sales proceeds.
Finance the commission
The broker usually calculates the legally permissible maximum amount of two months’ rent plus VAT for arranging a rental contract. When buying real estate, the exact remuneration of the broker differs depending on the region, for the buyer it mainly amounts to between two and four percent of the purchase price, on which VAT is also payable. The brokerage commission is not so high when arranging an average rental apartment that borrowing must be regarded as mandatory. However, since the new tenant has to pay the deposit and moving costs in addition to this, in most cases he needs a loan for the broker’s commission.
How is the brokerage commission financed?
Few brokers give prospective tenants the right to pay in installments. In addition, prospective tenants usually do not ask for such a property, so that the real estate agent does not classify them as financially weak and proposes to the landlord another applicant as tenant for the apartment. Since the amount of the brokerage commission is mostly in the three-digit range, the use of the overdraft facility is basically conceivable for this commission. If only the brokerage commission is actually financed through the overdraft facility, the account can be settled within a few months.
However, almost all those wishing to move need their overdraft facility for further moving costs, so that they have to take out a separate loan for the commission of their real estate agent. It is advisable to calculate the total moving costs for the brokerage commission before taking out the loan and to take up the corresponding loan amount in one sum. The only exceptions to this are costs for new furniture or kitchen equipment, provided that the furniture dealer offers an interest-free or at least discounted loan. The buyers of a property include the necessary credit for the broker’s commission as ancillary costs in the real estate financing and thus also receive the inexpensive real estate loan for this component of the purchase costs.
If tenants or real estate buyers have not included the commission payments in the moving loan or real estate loan and thus take up a separate loan for the commission, they must not forego an offer comparison despite the small loan amount. After all, loans with small sums are often associated with above-average effective annual interest rates, since the bank’s processing costs, which are largely independent of the amount of the loan, are reflected in the interest rate. With a loan for the commission, the short term offers the choice of a short term.