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Table 7 Arguments against taking a mortgage loan (decision = 0)

From: Developing financial competence about mortgage loans by informal learning using banks’ online calculators

Reference arguments Concept mentioned [on webpage (w), in case (c)] Ref. N (%) of students
CG EG
Term of fixed interest is very short w/c X   1 (4.3)
Term of the loan is very long/high w/c X 2 (9.1) 12 (52.2)
Percentage of repayment is very low w X   
Total repayment is very high w X   
Maintenance costs have to be considered w X 2 (9.1) 2 (8.7)
Development of interest rate after the term of fixed interest is uncertain w X   
Common arguments brought up by students beyond reference arguments (N > 1) Concept mentioned [on webpage (w), in case (c)] N (%) of students
CG EG
Debt remains after expiration of term of fixed interest w 6 (27.3) 6 (26.1)
Free disposable monthly income is not enough/very low w/c 4 (18.2) 3 (13)
Expenses for children have to be considered w 2 (9.1) 2 (8.7)
Term of fixed interest is 10 years m 2 (9.1)  
Annual instalment is less than free disposable monthly income w   6 (26.1)
Instalment can increase after expiration of term of fixed interest w   5 (21.7)
Interest rate can increase after expiration of term of fixed interest w   5 (21.7)
Due date of the purchase price is very early w   5 (21.7)
Repayment of the loan lasts until retirement age is reached w   4 (17.4)
There are no comparable offers w   3 (13)
Unscheduled repayment is very low w   2 (8.7)
Payment in advance/arrear w   2 (8.7)
Expenses for contingencies must be taken into account w   2 (8.7)
The calculator is confusing w   2 (8.7)
More information is needed    2 (8.7)
  1. Ref. reference arguments, X part of the reference argumentation