A difficult choice, when do you opt for a Continuous Credit? And when a ZOZ credit? To be able to determine this properly, it is important that you know the differences. Much is said about the differences between these forms of credit, while they have more similarities than differences.
Differences between ZOZ Credit and Continuous Credit?
The most important difference between a ZOZ credit and a revolving credit is that you sign a positive and negative mortgage statement with a ZOZ credit. You do this by signing the credit agreement.
A mortgage right at the first request of the lender
This sounds quite complex, the only thing that is content is that you provide a mortgage right at the first request of the lender. In addition, the lender can also indicate that you are not authorized to dispose of your home or further encumber it with a mortgage without written permission from MAFED.
What do you get in return? In exchange for the positive and negative mortgage statement you receive an interest discount of 0.2% on the interest rate. This allows you to borrow money with a ZOZ Krediet with a discount on the interest.
You can take out both an “ordinary” Continuous Credit and a ZOZ Credit in various forms. For example, you can choose 1% of your credit limit or 1.5% or 2%.
In addition, it is only possible with a ZOZ Krediet to take out a repayment-free loan. This is only possible if the ZOZ value of your home is higher than the mortgage registration. You can take out an interest-only loan for the difference between the ZOZ value and the mortgage registration. With an “ordinary” Continuous Credit you can no longer take out an interest-only credit.
Do you have a rental property? Then a ZOZ Credit is unfortunately not possible.