The decision to buy a house or apartment is usually associated with the need to take out a mortgage. This is one of the largest financial commitments, which is why it should be carefully considered beforehand offers available on our market. A cool assessment and knowledge of loan costs will allow you to choose the best offer with the lowest interest rate.
Time and loan amount
First of all, you should think about the amount and for how long you want to take out a mortgage? With this data, we can assess the amount of money we need to be able to start negotiations with the bank.
Today, to have a real chance of obtaining a loan for real estate, you need to have not only a good one history at Credit Information Bureau and relevant income. From 2014, persons interested in a mortgage must have their own contribution. Its amount depends on the bank’s policy, but you have to take into account that it will be 10-20% of the value of the collateral.
Credit in USD or in a foreign currency
The decision to choose the currency in which we want to enter into a commitment is also not easy. Please note that we will receive a loan in USD for a larger amount than in a foreign currency. Also if not we know the basics of the financial market, choosing a currency other than the one in which we generate income is very risky. Today, it is also increasingly difficult to obtain a loan in a currency other than the dollars.
Mortgage/housing loan rate
The interest rate is usually a significant part of the mortgage and depends on several factors. You can choose equal and decreasing installments. Choosing equal installments we pay the same amount for the whole period.
In the case of installments, they will be lower each year. When comparing the offers of individual banks, the APRC (actual annual interest rate) should be mainly taken into account.
Other costs should be added to the mortgage, which may significantly increase the amount of our monthly obligations. The bank always charges a margin, which can be negotiated depending on whether we are regular customers, what is our own contribution, etc.
In addition, we usually have to take out credit insurance, which is calculated for a certain period (depending on individual offers) and can range from a few to several months. Some banks also charge a commission for granting a mortgage.
Very often, banks offer additional products that reduce the margin or exempt from paying commissions. They are e.g. savings accounts, regular saving programs or deposits.
When choosing a mortgage, you need to spend a lot of time analyzing your financial situation and what the market currently offers. As a result, we are able to obtain a loan on favorable terms, which will allow you to enjoy your own home or apartment not only at the beginning but throughout the loan repayment period.