Monthly Archive: April 2019

A housing loan for what to pay attention before you choose a bank

A housing loan for what to look for when choosing a bank?

A housing loan for what to look for when choosing a bank?

There are many bank offers on the market related to housing loans (mortgage loans). The most important thing is to compare them, and thus pay attention to many parameters. That is why it is worth knowing more, because the easier it is to choose an appropriate housing loan suited to your needs.

Below, in addition, you can read the proposals of banks and advisers if you are looking for such a loan.

A housing loan for what to look for when choosing a bank?

A housing loan for what to look for when choosing a bank?

Having appropriate knowledge about the costs that are included in the mortgage, we can compare the parameters of offers in different banks and choose the best. Financial advisors, among others, act in this way. They check individual credit parameters and compare them.

However, you must know that you now need to have an own contribution of 20% of the value of the property being credited, in order to apply for the remaining part of the mortgage loan. In addition, of course, you must have adequate creditworthiness and creditworthiness.

A mortgage loan, or a residential loan, as with any other loan, also includes the costs of its granting and security.

The total cost of a housing loan

The total cost of a housing loan

The total cost of the loan, or CKK, is the sum of all costs associated with the loan. It is not only loan interest (due to nominal interest) paid with each installment, but also other fees. Of these, we can distinguish:

  • payment for processing the application – not all banks charge such fees,
  • commission for granting a loan – most often it is a certain percentage of the loan granted,
  • other fees that you should ask at the bank.

CKK does not apply to the costs of notarial fees borne by the consumer, in relation to whether it is not included in the APRC (read about below).

Mandatory fees are associated with a mortgage and a fire policy and other fortuitous events.

The total cost of a housing loan

The total cost of a housing loan

When comparing the total cost of a housing loan, you should pay attention to its APRC, ie the Real Annual Interest Rate. This is the cost of the loan on an annual basis.

This is practically the same as the total cost of the loan, but in percentage.

What does the APRC include? We find in its calculation the costs borne by the borrower, taking into account the time in which this cost is borne. With APY it is easier to compare home loans. The lower the APY, the cheaper the loan will be.

What affects the mortgage rate?

What affects the mortgage rate?

The interest rate on a mortgage is one of the factors that affects its price. Its height is influenced by two factors:

The bank’s margin, which is fixed throughout the loan period and will be specified in the contract. It is mostly influenced by LTV and the loan amount. Needless to say, the lower the margin, the lower the mortgage will be.

The margin may obviously change during the loan period with the consent of the bank and the borrower, an annex to the contract is signed. It often happens that the bank depends on its amount from the commission paid by the client. A higher commission is often a lowered margin.

The second factor that affects the interest rate is Jabank. It is independent of the bank and the change affects the amount of the monthly installment.

Home loan insurance. Not all are needed

Home loan insurance. Not all are needed

At the beginning, read the General Terms and Conditions of Insurance (GTC). Obligatory insurance is property insurance against fire and other random events. It is not necessary to buy insurance at the bank where you take out the loan. You can look for the cheapest insurer.

A favorable mortgage – Only the analysis of loans will allow such a loan

A good mortgage for buying a house or flat. Compare interest rates on housing loans in banks. Purpose of the mortgage: building a house, buying a flat or a plot of land.

Review of proposals in banks and the opportunity to contact a financial intermediary who will help you find a bank and mortgage for free.

And here comes the basic question: what is a good mortgage for buying a flat or a house? Or maybe for the general renovation of real estate?

Assuming that you have the right creditworthiness and you know how much you need a mortgage, then you can read the offers of banks and choose a mortgage.

However, if you do not know whether and what your creditworthiness is, it is best to contact any bank or financial expert in this matter.

A favorable mortgage comparison

A favorable mortgage comparison

If you compare only two loan offers in the case of mortgage loans, then a little. It is necessary to compare many loan offers. And this is a time-consuming task. And to know this yet and know what to look for.

The mortgage calculator will not help you find the best loan. It can only be used to estimate the installment and, if necessary, to contact the selected bank or designated financial intermediary.

Currently, when you buy a flat or a house, you need a 20% own contribution for this purchase of a mortgage. Without the own contribution, it is not possible to obtain a loan, unless the bank requires a minimum own contribution of 10%. But the missing amount should be insured. Not every bank has such a loan offer. In which banks is it possible?

And, among other things, it is worth contacting a financial expert. It is a great and proven way to get acquainted with mortgage offers, find out whether and what creditworthiness we have and what documents are needed when applying for a loan. Of course, it is also a comparison of mortgage loans, and not two or three banks, but nearly 20!