If you’re interested in the world of finance and are curious about learning about 3 financing trends which are dominating the financial markets, simply continue reading to find all the information which you need!
3 Financing trends to learn about:
1. The rise in popularity of flexible mortgage rates
While in the past decades, the majority of entrepreneurs and potential homeowners would seek to negotiate contracts for fixed-rate mortgages, in the past few years it has become far more common for mortgage seekers to sign flexible mortgage rates.
One of the reasons why more individuals may have opted for flexible rate mortgages is that there is a general consensus worldwide that international markets are more stable than they have been in the past and that interests rates won’t change overnight like they might have done in the past.
If anything, individuals believe that their flexible interest rates will decrease in the next few years, which could save them tens of thousands of dollars, compared to their friends who have signed up for traditional, fixed-rate mortgages.
2. Electronic banking
While consumers have been utilizing online banking platforms for a lengthy period of time, most individuals still would rely on visiting their local bank manager in order to apply for a loan or to negotiate a fair interest rate for their long term savings account.
However, in the last year the number of banks worldwide which have encouraged their customers to apply for mortgages and interest rates online, through innovative, secure banking portals, has skyrocketed. Such applications have really found traction with Millineal customers in particular, who prefer to deal with online systems instead of talking face to face with a bank manager.
3. Equity crowdfunding
In the past year a few US, Australian, and UK based crowdfunding sites have grown from success to success. Equity crowdfunding sites allow businesses who are looking to take their business to the next stage in their business plans to find the capital which they need by offering private shares in their business to everyday investors around the world.
One of the bonuses for investors in backing businesses on equity crowdfunding focused sites is that if the company which they back sells to an established company in the same industry or lists on a public stock exchange, early investors are likely to receive a rather large return on their investment.
However, as not all of the companies who list shares on an equity crowdfunding website will reach such a high level of success, potential investors still need to do their research before they invest a large amount of money in any business opportunity.
4. Shared mortgages
As properties are getting more expensive and businesses also require a large amount of capital many individuals are choosing to apply for mortgages with business partners, parents, family members, and friends as a way of meeting their business or homeownership goals faster than otherwise would be possible.
However, it pays to be wary before co-signing a mortgage with other people as if they are unable to make their repayments you may be held liable.
To find out what financing trends will dominate the finance world in the future, continue to keep informed of the changing trends in the finance world.