Borrowers usually have very consistent preferences in terms of analyzing mortgage offers. The most important factors in choosing a mortgage include the interest rate, as well as an assessment of the total costs, not only the nominal interest rate, but also the share of commissions and handling fees. Added to this is the loan period or the currency of the liability. In the article, we’ll talk more about these factors.
The interest rate on mortgage loans
Is shaped in accordance with legal conditions and guidelines of the National Bank of Poland. For now, the country has low interest rates, for more than a decade, which indicates a great interest in long-term forms of liabilities. At low interest rates, such a large loan simply does not burden the household budget so significantly. The total mortgage costs include not only commissions, but also handling fees for transfers, application processing fees, insurance costs, e.g. compulsory with low own contribution, the cost of establishing collateral, real estate valuation.
Additional fees, of course, you pay at the beginning of cooperation with a retail bank, so assessing the total cost of the loan seems to be absolutely priority before signing the contract. You do not have to naturally perform the indicated actions yourself. Most borrowers go to independent advisors (brokers), now more experienced, after appropriate examinations. In recent years, the Polish Financial Supervision Authority has ensured that the market of credit intermediaries finally gains in quality.
The Mortgage Act further provides for the settlement
The intermediary directly by the retail bank, and therefore the potential borrower does not have to be afraid of incurring additional costs under similar cooperation. And the earlier model, however unacceptable, assume payment in the act for intermediary services from the customer.
The borrower should not only think about the above factors. A very important category is a chance to quickly restructure a long-term commitment. If you are not sure whether a retail bank will accept the recovery plan and help with restructuring, then such cooperation becomes very risky. Pursuant to the Mortgage Act, retail banks should first of all protect the borrower’s interests, precisely by accelerating restructuring, by exiting with good tools.
Credit holidays are practically an option in any long-term loan agreement
A significant extension of the mortgage loan period is not entirely the right choice, as part of the liability may be transferred to the heirs. This is usually a very problematic area. Mortgage loans in foreign currency are already characterized by low popularity. The example of franchisees who are struggling with the huge costs of servicing the commitment shows that such a risk simply does not pay off.
When analyzing your creditworthiness, consider thoroughly testing your home budget for installments to be borne. If you do not carry out such a test, you will probably feel a lot of pressure after signing the contract. Such a test can be carried out as part of building own contribution, which seems a very reasonable solution. Mortgage requires, as you can see, a professional analysis of virtually all economic, formal and even macroeconomic factors (shaping interest rates in the national economy).