The aim of the thesis topic „Selection of the appropriate forms of financing real estate“ is comparison of various possible forms of external financing of real estate intended to pursue business. In the real case is compared builds Investment Loan, mortgage and leasing real estate offered by financial institutions operating in the Czech market.

The object of the thesis is the comparing bank services and evaluation of the most advantage variants of house financing. Thesis has two parts. In the theoretical part is defined topic housing finance, valuation and real estate market. In the practical part is compared twelve mortgage. Selected the best product and compiled repayment schedule.

This work provides a detailed research on the present condition of the residential realty market and possibilities of housing financing. Explanation of basic terms on the major fields of housing financing is covered in the theoretical part. The practical part is focused on analysis of the present condition connected with the above mentioned topic. In addition, a model situation of housing financing is included in the thesis. Both the lease and the purchase of housing are compared.

The thesis deals with risks related to the valuation of real property for banking institutions. In the theoretical inputs are defined areas related to bank loans, especially mortgages, real estate valuation and value analysis. There is a considerable part focused on defining the risks associated with the of real property valuation for banking institutions. There is in the practical part already made a case study, which is focused on the risk assessment that can affect the value of the pledge of real property for providing a mortgage. To meet this aim, first step is to put value on selected property for the purpose of a mortgage. The next step is based on a questionnaire survey to specify risks that affect the value of the pledge and to prioritize it. At the conclusion of thesis are compared defined risks with risks obtained from the case study.

Having a home is one of the most basic human needs and everyone attempts to accommodate this need as well as possible. We consequently decide what approach is most advantageous for our needs - whether to rent a home or whether to buy and own one. If we decide owning a home is the right option, we then have to decide, how to go about purchasing it. Not everyone can afford paying for a property upfront in cash and at that is when banks come into play, lending us money to buy property. This paper focuses on whether having a mortgage is the correct strategy for acquiring a home. This will vary individual to individual based on his or her life goals and other factors. Generally, it can be said that purchasing a home using a mortgage can be advantageous, but the difference between renting and buying on a mortgage might not be that significant. Renting a home does have its own specific advantages, and when one's financial plans are managed correctly, it can be a better option for accomplishing financial independence.

Malgré d’importants avantages, la dette comme source de financement implique un risque d’insolvabilité. La faillite et la liquidation des actifs ont un coût élevé non seulement pour l’emprunteur et le prêteur, mais aussi pour la société en général. La détresse des entreprises peut en effet d’une part se propager dans l’économie et provoquer une contagion et d’autre part impliquer des externalités négatives (telle la chute du prix des actifs liquidés). La renégociation de la dette survient donc comme une alternative à la faillite/liquidation, une solution qui peut se montrer avantageuse pour toutes les parties impliquées et pour la société. Cette thèse propose une analyse théorique de la renégociation de la dette dans deux contextes particuliers. Le premier concerne le cas de la dette d’entreprise. Le second concerne le cas des crédits hypothécaires. À notre connaissance, tous les modèles de la littérature sur la dette d’entreprise impliquent ou autorisent un nombre infini de renégociations de la dette. Cette caractéristique empêche l’analyse du nombre optimal de renégociations. Pour pallier cet inconvénient, nous introduisons des coûts fixes de renégociation dans un modèle structurel de renégociations multiples. On analyse la réduction optimale du coupon, le moment et le nombre de renégociations. En ce qui concerne la renégociation des crédits hypothécaires, nous contribuons au débat sur la crise actuelle des saisies immobilières en étudiant en premier lieu la décision d’un prêteur de renégocier ou de saisir, et en second lieu l’impact négatif de la saisie sur les prix immobiliers. Enfin, sont analysés le rôle de la titrisation des crédits dans les décisions de saisir les biens immobiliers ou de renégocier les dettes en souffrance, ainsi que les contrats des gestionnaires immobiliers / Despite important advantages debt financing entails a risk of impossibility of payment. Bankruptcy and foreclosure are costly not only for the borrower and the lender, but also to the community as a whole through contagion and negative externality effects. Renegotiation then arises as a win-win solution for the parties involved. This thesis focuses on the analysis of debt renegotiation for the cases of corporate debt and home mortgage debt. To our knowledge, all the previous work on corporate debt renegotiation implies an infinite number of renegotiations. This feature preempts the analysis of the optimal number of renegotiations. We address this drawback by incorporating fixed renegotiation costs in a structural model of multiple renegotiations, analyzing the optimal debt reduction, timing and the number of rounds. Regarding home mortgage renegotiation, we contribute to the debate about the current foreclosure crisis by studying a lender’s decision to renegotiate or to foreclose, and the negative effect of foreclosure on house prices. Finally, the role of securitization in foreclosure and renegotiation decisions, as well as servicer contract design are investigated.

Harsh competition influence the profit margins of Swedish banks, where mortgages are some of the most profitable products. Unfortunately, mortgages also happen to be the most influential products when it comes to customers’ willingness to switch banks. Currently, the four largest banks in Sweden are losing both customers and mortgage market shares to smaller firms at an increasing rate. One of the big four face greater problems acquiring new credit market shares when compared to its three competitors. In this study, actions taken in order to keep existing customers are central and the bank finding it particularly troublesome to acquire new credit market shares out of the big four is therefore examined. Through a qualitative study, mortgage advisors at the bank in question are asked to explain how they handle theoretical concepts such as post-purchase feelings, repurchase behaviour and customer loyalty in practice. Answers from the interviews are then analysed and compared to existing theory, where the results show that practice is not always executed as expected from a theoretical perspective. The purpose of the study is to better understand how the advisors work with the theoretical concepts, in order to fathom why the customers are leaving. The results show that mortgage advisors at the bank in question worked inconsistently with customer’s post purchase feelings. This was due to the advisors having free reins over how to process their own customer base with a lack of system support. Consequently, some of the advisors worked with direct post purchase activities whilst some did not get in touch with their customers at all. In addition, loyalty was an aspect that customers often thought to be of great importance for the bank. However, loyalty was not a determining factor in the calculations made by the advisors in order to present the customers with interest offers. Though it could be of some importance for the small mandate every advisor had over the final interest discount, where satisfaction with a customer could grant a more generous proposition. / Den svenska bankmarknaden kännetecknas av en hård konkurrens, där bolån är en av de mest lönsamma produkterna. Dessvärre är bolån även den produkt som har störst inflytande när det kommer till kunders benägenhet att byta bankaktör, och länge har de fyra största aktörerna på den svenska bankmarknaden tappat kunder till mindre aktörer i en allt ökande omfattning. En av dessa storbanker har även visat sig ha det mer problematiskt än sina tre likar att ta nya marknadsandelar på kreditmarknaden vilken vidare undersöks i denna studie där åtgärder utförda i syfte för att behålla kunder är centrala. Genom en kvalitativ studie har bolånerådgivare vid banken i fråga ombetts förklara hur de arbetar med de teoretiska koncepten efterköpskänsla, återköpsbeteende och kundlojalitet i praktiken. Svaren har sedan analyserats och jämförts ur ett teoretiskt perspektiv, där resultatet visar att arbetssätt och teori inte alltid överensstämmer med varandra. Syftet med denna studie är att bättre förstå hur bolånerådgivare arbetar i förhållande till teoretiska koncept, för att skapa en bättre förståelse för varför det sker ett så kontinuerligt och tilltagande kundtapp. Resultatet av studien visar att bolånerådgivarna på banken i fråga arbetade på ett inkonsekvent sätt med kundernas efterköpskänsla. Något som var till följd av att arbetssättet med den egna kundstocken var individuellt konstruerat av varje rådgivare och att en avsaknad av systemstöd förelåg. Som en konsekvens, gjorde vissa rådgivare direkta efterköpsutskick, när andra inte hörde av sig till sina kunder över huvud taget. Vidare var lojalitet en aspekt som kunderna kunde tro var av stor vikt för banken. Men i själva verket var detta inte en variabel alls i de kalkyler som rådgivarna nyttjade för att ge ett så rättvist erbjudande som möjligt. Däremot kunde lojalitet ha en liten betydelse för det mandat varje rådgivare hade över den slutliga ränterabatten, där en bra kund kunde få ett mer generöst förslag.

Credit market frictions, captured by mortgage spreads, are potentially an equally important driver behind mortgage rate innovations as monetary policy. Possibly a significant driver of business cycles. Yet, the effect of such shocks on the economy has barely received any attention in empirical research. By estimating a SVAR for 12 EU countries, I find that mortgage spread shocks have a significant effect on GDP, consumption, residential investment and house prices. The magnitude of their effects is comparable to a monetary policy shock. I also find that the transmission mechanism of such shocks is influenced by mortgage market characteristics. A high mortgage debt-to-GDP ratio and widespread use of mortgage equity withdrawal, compared to a lower ratio and less or no use, potentially imply a stronger response in house prices and residential investment of 0.5 and 1 percent respectively.

Denna uppsats behandlar hur de svenska retailbankerna gör sina kreditbedömningar vid bolåneansökningar för privatpersoner med fokus på kalkylerna. Då bolån är något som de flesta tar någon gång under sin livstid är det intressant att se om kreditbedömningar skiljer sig och om tillsynsmyndigheten Finansinspektion kan se några problem med hur bankerna utför dessa. Uppsatsen är av explorativ karaktär, där fältexperiment genomförts för att försöka visa hur kalkylerna är utformade och skulle kunna påverka en kund som ansöker om bolån. Studien har utformats efter en fiktiv person som ansöker om lånelöfte på de fyra svenska storbankerna. Studien visar att det är en del skillnader på hur kalkylerna är utformade på de olika bankerna. På en av bankerna skulle den fiktiva kundens ansökan om bolån inte ens ha mottagits med de värden som användes vid ansökningstillfället. Det visar på vikten av att konsumenterna är väl insatta för att veta hur de på bästa sätt kan få sin ansökan beviljad. / This paper discusses how Swedish retail banks make their credit assessments in mortgage applications for individuals with a focus on the calculations. When the mortgage is something that most people need at some time in their lifetime, it is interesting to see whether these assessments are different and if the regulator Finansinspektionen can see some flaws with the way banks perform them. The essay is an exploratory study, where a case study has been conducted to try to show how the estimates are designed and how they could affect a consumer who applies for a mortgage. This has been designed for a fictitious person applying for the loan commitment of the four major banks in Sweden. The study shows that there are some differences in how the calculations are designed in various banks. On one of the banks the application for the fictitious customer would not even been received with the values used in the application. It demonstrates the importance of a well-informed customer, to know how they best get their application approved.

How banks set the mortgage interest rates and the sizes of the mortgage margins they obtain from making mortgage loans always attract attention from households, government authorities, politicians and market actors. This thesis studies the relationship between Swedish mortgage interest rates and mortgage lending institutions’ costs of obtaining funds, and how the gross margins of mortgage interest rates influence the banks stock returns. In general, banks’ mortgage margins are correlated with their funding costs, which are typically reflected in the yields of mortgage bonds (covered bonds), interbank rates (STIBOR) and the repo rate. How-ever the correlations change over time and sometimes the mortgage margins are relatively low and sometimes relatively high. Since mortgage loans play an important role in banks’ lending business, the related interest rate margins should influence banks’ profitability and therefore the performance of their stock. Everything else equal, higher margins should result in higher stock returns. I have collected and constructed a time-series data set based on Swedbank mortgage rates, Swedbank stock prices, yields on government bonds, yields on mortgage bonds, STIBOR interest rates, and repo rate. Both descriptive analysis and econometric models are applied to analyze the time-varying characteristics of the financial data. The thesis covers unconditional correlation (Pearson correlations), and conditional correlation through applying DCC-GARCH models. Besides, ARCH and GARCH models are employed to measure the ARCH and GARCH effects of the spread (premium) terms between interest rates. The results from descriptive analysis and econometric models present the tight relationships between the mortgage interest rates and the corresponding funding costs, and show the posi-tive but low correlations between mortgage margins and bank’s stock returns. The results also support the existence of time-vary volatilities (risk) of spread (premium) terms and quantify the growth of return for the certain increase in risk taking.