A mortgage is a liability usually made for a few or several years. For this reason, we should seriously consider making the optimal choice that will pay off in the long run. On the Internet we can find many interesting proposals from various banks and financial institutions that also compete for clients in this area.
The most favorable mortgage
There are two main factors that determine how attractive an loan will be. The first is the amount of the minimum own contribution. Only a few years ago there was no need to have even a small amount that you could immediately invest in an apartment. This meant that one could take out a loan of one hundred percent of the absence value of interest.
Currently, according to Polish law, banks should demand at least 20 percent of the property value. Such real estate comes from the Polish Financial Supervision Authority. There is a possibility of inserting a lower own contribution, but this occurs under certain rigors. This happens when you take out additional insurance or provide another reliable security. Then, however, you still need an own contribution of 1/10 of the property value.
The second important element which is taken into consideration by banks when verifying the credibility of the applicant is creditworthiness.
The issue of assessment depends primarily on internal banking procedures. Banks have to assess for themselves whether the client will be able to repay their installments on a regular basis when they undertake a serious commitment, such as a loan. The maximum loan amount is determined based on your creditworthiness. The process of determining creditworthiness is quite complicated because it takes into account a number of aspects that at first glance do not have much in common with credit.
Applying a financial support
For example, the age of the applicant, number of children or professionally active people are analyzed. The credit history, which gives many answers about the applicant’s approach to settling its obligations, is also not overlooked. Most banks take into account similar factors, which is why a potential applicant is able to improve these parameters before applying for financial support. Often, such treatments effectively increase the likelihood of receiving loans.
At a time when our creditworthiness is at a decent level and at the same time we have our own contribution, we can start looking for offers that can meet our expectations. The Internet, which has useful sites for quick analysis, will help. Credit comparisons are updated on a regular basis, so we can be sure that we will quickly find out which offers are currently the best.
The interest rate, often called the Euridor rate, plays a big role when choosing a mortgage. This rate is characterized by the fact that it is constantly changing. It depends primarily on changes in interest rates. They, in turn, are determined by the Monetary Policy Council. The margin determined by the bank is also of great importance for the final level of loan fees. Fortunately, it remains stable.
Each bank has its own rate, which often has a decisive impact on the level of competition. The amount of the margin may depend on the amount of own contribution and the amount of the loan. The more funds we can spend on our own contribution, the smaller the margin will be allocated to us. The length of the loan is also important. The margin can be reduced by taking part in promotional campaigns conducted by the bank.
A lower margin may be caused by setting up a bank account or purchasing insurance. There are many possibilities.
To get a cheap loan, pay attention to the amount of commission. This is an additional fee that the bank charges for granting a loan. The commission is calculated as a percentage of the loan amount. Usually, the commission is paid before the loan is transferred to the account.
Some banks also require bridge insurance. This additional security established by the bank until the mortgage is entered in the land and mortgage register in favor of the bank. The borrower is often forced to bear the costs associated with property valuations made by professional appraisers. This type of order is directed to external companies that are to remain impartial during the valuation.