Immovest Immobilien GmbH

Real Estate Agency in Chiemsee

Apartment complex Credit guideline: lawmakers have to rework urgently!

Incorrectly implemented EU guideline leads to age discrimination

The IVD, the Real estate Association Germany, invite the lawmakers to adapt the implementation of the EU-apartment complex credit guideline to national law.

The new regulation represent for the IVD an age discrimination that is unconstitutional because by their formulation in the newly created §§ 505a para. 1 BGB and 18a para. 1 KWG, a credit may only be awarded if the term of the loan is no longer, as the statistical life expectancy of the borrower.

The EU guideline requires in chapter 6 paragraph 5 only that the loan will be contractually fulfilled. Thereby it is irrelevant whether the borrower himself act or his heirs. To solve the credit crunch, the legislator should therefore take over the wording in the EU guideline literally, the president of the IVD Jürgen Michael Schick says. Thus, it would be sufficient, if the borrower is likely to be able to fulfill the loan up to his death. After his death, the fulfillment of the loan could also be done by a life insurance policy, a guarantor or heirs. Through this security the bank would be protected from the default of the credit.

Also, there is currently giving young couples who want children a hard time because their income of the next 30 years is tested. The calculation includes that one of the partners will possibly soon no longer working and the other can thus probably no longer service the loan.

In case of the since March 2016 prevailling new guideline for lending, the legislator must make improvements as soon as possible. It would be enough if the lawmakers takes over the regulation of the EU guideline simply literally. The President of IVD puts in mind of the problems of the next generation: age poverty through pension holes, housing shortage in urban areas as well as the transformation of energy in the form of modernization. The goal should be a higher rate of ownership because it is irresponsible to curb the lending for house purchase.