I apologize for the long post. I don’t really know how to ask my questions without going into details and examples and screenshots.
I have lettered my questions to help keep orientation.
I try to create a mortgage in KMyMoney and my lack of general finance knowledge doesn’t help me to clarify my confusion.
This mortgage:
has a fixed rate.
started in the past and will end in the future.
doesn’t reimburse 100% of the mortgage during the repayment time. At the end, the borrower has still something to reimburse. Either he pays it cash (balloon) or he subscribes to a new mortgage.
I will take this example to explain:
One bank my current bank has one account: my current account
I signed a mortgage (my mortgage account) starting on 1st of January 2024 with another bank (my mortgage bank) to finance my flat i bought at the same time.
The details of the mortgage are:
Amount borrowed: 100.000 €
Duration: 24 months
monthly reimbursement: 3.000 €
interest rate: 4%
Start date: 1st January 2024
– How to implement this in KMyMoney? –
If i understood how a loan is designed in the software, my mortgage entails three accounts:
#
Account name
Bank name
Account type
Role in implementing the mortgage
1
my current account
my current bank
current
sends money monthly (3.000 €) to my mortgage account and writes an expense (mortgage interests) monthly to himself
2
my mortgage account
my mortgage bank
loan
pays the 100.000 € to my nice flat the first day (Jan 1st, 2024) and receives the monthly 5.000 € from my current account 12 months long.
3
my nice flat
my current bank
asset
receives 100.000 € from my mortgage account the first day (Jan 1st, 2024) and does nothing after it.
a) Is this correct?
Here are the details of the mortgage creation. I have a few questions in there. It would be very nice to help me to unterstand the way KMyMoney manages loan accounts.
Today is July 25th 2025, so i have already reimbursed 19 months. b) Should i select “yes” to the question "Did you make/receive any payments yet? c) If yes, should i selectall payments or start with this year’s statement to the next question? Let us assume that i already have the monthly expense of 3.000 € in my current account from Jan 1st 2024 until July 1st 2025 in KMyMoney. d) I am also not sure about the question due date of first payment to be recorded. Should i set it to Jan 1st 2024? or leave to the default value of July 31st 2025?
step 4/8: KMyMoney calculates a balloon payment of 33.485,63. Ok.
e) Why is the field first payment due on greyed out and the value behind set to today (July 25th 2025) although i set due date of first payment to be recorded to Jan 1st 2024? f) Should they not have the same value?
step 7/8: i must set up the asset payout, this involves that i create the third account, namely my nice flat
This seems not logic to me. h) Do i understand the column headers the wrong way around? To my mind, a mortgage is a kind of debt, so i would expect to see the amount in the decrease column and a negativ sign in the balance column: -100.000 € instead of +100.000 €
my current account looses 3.000 € each month since Jan 1st 2024, that is ok for me.
The transactions of the past are shown but greyed-out. This means they are not entered in the ledger. To change this, i click on enter next transaction.
We can see the two bookings, one to the mortgage account, one to the load interest expense category.
My question here is: i) is there a way to run enter next transaction for all transactions from the past in one shot? This example here is fictive, my real example is 14 years (168 months) in the past . I would like to avoid clicking 168 times the four clicks needed for one transaction…
I could, when i am sure that i got the right content, create this message as a wiki article in KDE UserBase Wiki so that future user can find a reference of creating a fictive mortgage. ↩︎
A start date - my KMyMoney money tracking started at 1st of April 2023
My asset accounts have a start balance in 2023/04/01, including my loan; the start balance of the loan account is how much of the loan I already payed before 2023/04/01 and that can be taken from the reimbursment scheduler. The start balance for the various bank accounts or investments is how much money I had in those bank accounts at 2023/04/01.
I understand the logic, thanks for the input.
however i see this drawback: it doesn’t give the full history of the monthly repayment split, but only the part >= 2023/04/01. The repayment split < 2023/04/01 is absent.
In my fictive example starting on Jan 1st 2024, i mean this mortgage split:
the monthly interest amount split goes into expense category Loan:Loan interest
the monthly amortization split goes into my mortgage account
If i give up on tracking the history data, i will have only the value of 3.000 € without split. After this date, you see the proper split into 2.666,67 € and 333,33 €.
In my case, i started tracking my current account in KMyMoney in 2023 but the data i loaded starts from 2011.
This is not available but maybe a cool feature to add. We would have to make sure to also catch any extra payments because they have a major influence on the interest payments. An idea would be to limit the execution up to the next extra payment.
@surcouf Keep a copy of your data file as it is right now for testing
thanks for answering the question i). Have you seen the questions a) to h) ? The questions a) and h) are not hidden in my first message, the questions b) to g) are indeed hidden in the “Hide details” function here (the black triangle):
Yes, I have seen them but had no immediate answers. The development of this part of the code goes back more than 20 years so I don’t have all details present I’ll give it a try nevertheless
b) and c): I honestly can’t tell without investigating the source code
d) You should adapt it to the date you want to record the first payment
e) I don’t know the reason but you could be right with f)
g) Yes, it’s not shown but also not important at this point in time and not stored on file. The same applies to the balloon payment. We can certainly add it to the summary but after that it will not be available anymore.
h) Liability and income accounts are shown with reversed sign. When you receive the loan the liability itself increases, you owe more so that column makes somewhat sense to me.
Next point regarding i) “enter next transaction” for all overdue scheduled transactions. I will try to speed it up by setting a shortcut in Settings → Configure Keyboard shortcuts:
New point j):
I struggle to understand how to manage reports and loans.
Until now i had only my current account in KMyMoney, no loan account for my mortgage.
In the Income and expense reports, i saw every month in category “loan monthly repayment” the amount -3.000 € and it was the truth, i paid monthly 3.000 € to my mortgage bank.
Now it is different: the Income and expense reports shows only the interest part of the monthly repayment (333,33 € in Jan 2024 in my case). I haven’t booked the other overdue scheduled transactions yet, therefore are Feb, March 2024 and so on still empty.
I understand that this is correct on an accounting perspective, because the amortization of the monthly repayment flows to another account, the my mortgage account.
But still, how can i have a report showing my monthly income and expenses which has the whole cash-ins and outs of my life? In real life, i paid 3.000 € monthly and not only 333,33 €
I don’t know how to report this properly in KMyMoney…
I have finished importing currently running mortgage started in the past into my regular KMyMoney file, therefore i can answer as a summary the main questions.
Thanks @savornicesei and @ipwizard for your help !
no, and it is not recommended (because it is safer to check each monthly split between amortization and interest amounts, since the amounts change every month).
An ergonomic way though is to assign a keyboard shortcut to enter next transaction (Ctrl+i) to accelerate the writing of the overdue scheduled transactions of the mortgage.
New point j):
I struggle to understand how to manage reports and loans.
The amortization part of the mortgage is not visible in income and expenses reports, since it is a transfer and not an expense in KMyMoney’s logic.
To let them appear in income and expenses reports, i found this way:
tick the “include transfer” box in the report configuration
in Filters, deselect both the mortgage asset and the mortgage liability account to make it appear (paradoxically) in the report
. I would like to avoid clicking 168 times the four clicks needed for one transaction…
the drawback: filtering on accounts makes impossible to also filter on categories… so this is a limitation for this report.
