Comparison of mortgage loansCheck the cheapest mortgage loan online

Currently, almost every bank operating in Poland offers a mortgage loan to its clients. However, mortgage loan offers are varied. It is worth remembering this, because a mortgage loan is usually a commitment for many, many years. You should make your decision carefully and choose the best offer carefully. This is certainly troublesome, especially for those customers who are not interested in finance and banking. Banks collect margins, commissions, and other fees, such as real estate valuation, loan insurance, and even costs of servicing additional products. Banks often charge a commission for early loan repayment.

The cost of loan repayment is calculated by APRC, i.e. the annual real interest rate. It allows you to compare the costs of individual mortgage loans. It allows you to assess the competitiveness of individual offers and choose the cheapest offer currently available on the market. However, it should be remembered that the total cost of the loan is lower, the lower the actual interest rate.

Insurance is often associated with mortgage loans. Many banks expect customers to purchase insurance, while others claim that purchasing insurance reduces the margin. Bridging insurance is mandatory. It is paid from the time a mortgage is established in favor of the bank in the land and mortgage register of the purchased property. It should be emphasized that you cannot opt ​​out of it. Banks use different methods of collecting this insurance. Many banks increase the mortgage loan margin for the period of bridging insurance.

It is worth adding that banks are most willing to grant loans to customers who want to buy real estate. Those who do not want to use their own savings to purchase real estate and want to take out a full loan for the purchase of real estate must take into account additional costs in the form of a low own contribution. Such insurance is available to people who do not have their own contributions and the purchase of real estate is to be financed entirely with a loan. A significant number of clients try to postpone taking out loans and try to accumulate as much of their own funds as possible.

The borrower is obliged to pay insurance for a low own contribution and high loan installments. As you can see, loan installments are then increased by additional insurance. Usually, it is enough to pay an own contribution of at least 20% of the property value to avoid paying the above insurance. Below 20% of the own contribution, banks impose the obligation to pay this insurance. Typically, the insurance amount is 3 to 4% over three or five years.

Some banks offer customers the option of insuring the mortgaged property. Some of them require clients to insure their property, as the property serves as security for a mortgage loan. Most often, insurance covers accidental events and fire insurance. These events may significantly reduce the value of the property and cover the renovation costs out of your own pocket. Insurers cooperate with banks. Bank customers who take out loan obligations can therefore count on better insurance conditions.

Some banks oblige their clients to purchase accident insurance, life insurance, or even unemployment insurance. They are, of course, an additional source of income for the bank. Meanwhile, they are a source of unnecessary costs for customers. It is worth checking the loan and insurance conditions. It may turn out that additional insurance means a significant reduction in loan installments by lowering the margin.

In Poland, for some time now, there has been an increase in interest in cross-selling. This is nothing more than tying, also known as bundling. It occurs when banks offer borrowers, for example, a lower margin in exchange for using another bank service, e.g. using a credit card.

The undoubted advantage of cross-selling is reducing costs on the customer's side. Reducing loan installments, even by a small amount, means that after the entire loan repayment period, this amount is already noticeable. However, this option may certainly involve the occurrence of various types of complications. Most bank customers believe that they do not fully understand all the provisions of the loan agreement. This causes many doubts to arise. Banks often offer to reduce the margin for meeting additional conditions. Borrowers are not entirely convinced whether taking advantage of such a promotion is beneficial to them.

Borrowers are mainly afraid of the additional costs that await them. Using cross-selling may, of course, turn out to be troublesome and unfavorable, but if the customer uses the appropriate offer, he can be sure that he would incur higher amounts if he used the bank's traditional offer. We can imagine a situation when a client takes out a mortgage loan. The bank offers a margin reduction in exchange for opening a savings account. This is expected to reduce the installment by PLN 10. However, the cost of maintaining an account is PLN 15. This means that in reality the customer can pay more using the promotion.

The next stage of applying for a mortgage loan is collecting all documentation, including certificates. The list of these documents is long and the longer it is, the more complicated the borrower's financial and family situation is. It should be borne in mind that differences also concern the form of employment of the applicant. The borrower must submit an appropriate loan application and present two identity documents - an ID card and another document, e.g. a driving license. Banks do not impose on applicants what documents they should be. An important document is a certificate of income and form of employment. They should be delivered on a bank form. This document is valid only for 30 days from the date of issue. Borrowers must provide a cut from the bank account in which the salary from the last three months is transferred. What is important is the fact that banks additionally expect PIT 37 to be delivered with a stamp confirming acceptance at the Tax Office. Usually for the previous year. Some, however, in two years. Some banks also require their clients to provide other documents - this may include, among others, a certificate of the amount of the basis from which contributions are paid for the last few months. Some banks require the company employing the borrower to provide a certificate confirming that there are no contraindications to extending the employment contract for a fixed period. Some banks, in turn, require an annex to the employment contract, which is to contain information on the amount of remuneration for work. Natural persons who do not run a business have easier access to a mortgage loan. People running their own businesses have a more difficult time. Banks expect many documents to be provided. Of course, the most important document is the entry in the business register. Additionally, a certificate confirming the NIP and REGON numbers must be provided. In addition, you must provide a certificate of no arrears in the payment of social security contributions and contributions to the Tax Office. It is necessary to provide PIT 36, PIT B, PIT 36L for the last year. Some banks require these documents for the last 2 years to be provided with the stamp of the Tax Office or by sending a registered letter. Banks also expect a bank account statement for the last year and statements of the revenue and expense ledger, or possibly a profit and loss statement for the previous financial year. It is worth bearing in mind that the list of certificates and documents depends on the bank's policy and the requirements it has towards its clients.

Please remember that documents related to the purchased property are also necessary. It should be mentioned here that in the case of the primary market, a preliminary agreement with the developer and documents confirming the payment of own contribution are necessary. Additionally, a copy of the land and mortgage register, an extract and an excerpt from the land register. You must provide an extract from

Developer's National Court Register. Banks also expect to receive a building permit with a finality clause and an occupancy permit or confirmation of acceptance of the property for use. Customers receive these documents from the developer.

If we buy an apartment on the secondary market, in addition to the preliminary agreement, we must also provide a copy of the land and mortgage register, a document confirming ownership, as well as a number of other documents, such as a certificate of no arrears with fees, an appraisal report, and confirmation of making the property's own contribution.

After collecting and delivering the above documents to the bank, we must take into account some time necessary to verify our creditworthiness and consider the loan application. It may be a few days, but sometimes we can wait up to several weeks. The length of time the application will be considered depends on, among others: on the financial situation of clients and on checking the property. The customer's creditworthiness is important. It is determined not only by the financial income achieved, but also by the liabilities and expenses, and even the age of the borrower. Credit history also counts. An applicant with high income but with a poor credit history may expect to receive a negative credit decision.

Applicants can expect a situation when the bank will give them a negative credit decision because, according to the credit analyst's calculations, the amount of loan installments may be a problem for the borrower and may therefore have problems with regular repayment of the loan. Each bank currently assesses the ability of customers at its own discretion. The fact that a client did not receive a loan in one bank does not mean that he will not also receive it in another.

It is important that until a credit decision is obtained, customers can talk to the bank about the terms of the loan. During this period, customers must collect all documentation and complete all necessary formalities related to the loan agreement.

The provisions of the law in force in the country are intended to largely protect borrowers against unfair practices of banks. Unfortunately, the law does not protect against recklessness. Customers must read contracts carefully before signing them. The 2011 Act specifies what information must be included in the loan agreement. Lack of this information may result in the borrower not paying interest for 4 years.

The loan agreement should be clear and transparent. The provisions should not be constructed in such a way that customers do not understand them. References to other legal acts and bank regulations should be avoided. Such provisions will allow the bank to freely change the content of the loan agreement that applies to us. Importantly, correction requires the preparation of an annex and the consent of each party.

The loan agreement should contain information regarding the costs of overpayment and the conditions related to early repayment of the loan. Of course, information on the consequences of delays in mortgage repayment must be included. The agreement should include information regarding loan security, i.e. whether the bank will be able to expect additional security for the obligation from us.

Are there any differences between financing the purchase of an apartment on the primary and secondary markets? Yes. In the case of purchasing an apartment from the secondary market, the payment of funds to the bank takes place shortly after the delivery of the notarial deed and the application to the land and mortgage register court for the registration of the new owner and mortgage, as well as the payment of the appropriate commission.

If you purchase an apartment on the primary market, it is necessary to provide the bank with an agreement on the transfer of receivables from the signed preliminary agreement signed by the developer. Then, you must provide an excerpt from the land and mortgage register with the mortgage entered in favor of the bank. Please remember that this allows the client to avoid having to pay for bridging insurance.