Comparing mortgage loans
A mortgage in the face of high and ever rising property prices in Poland is often a must. This is a very important contract, binding people for several dozen years, often for life.
Therefore, it is necessary to choose the most favorable loan, which can be a real difficulty for a layman, especially since guiding solely by interest rates or fees can be misleading. The best method is to carefully compare your mortgage. How can this be done in the most advantageous way?
At the beginning, the most important thing is to understand what type of loan is a mortgage. Its main determinant is security – in this case only a mortgage, which is established in favor of the bank that grants the loan. It is granted primarily for the purchase of real estate, sometimes also a construction investment, then it is called a mortgage construction loan.
Contrary to real estate, it is not the only collateral for a mortgage – the bank’s client also guarantees his assets and income – both current and future.
So-called foreign currency loans are another issue regarding mortgage loans. Contrary to popular opinion, this kind does not occur in Poland. Currency loans are incorrectly called currency loans. This is a chance for the customer to get a cheaper loan, but he often risks all his assets if the rate suddenly becomes extremely unfavorable.
A few years ago it was a very popular form of credit, especially in the Swiss Franc, but the sharp increase in its price as a result of the so-called Black Thursday in 2015 negatively affected confidence in this type of mortgage. Before this event, comparing mortgage loans denominated in zlotys and indexed with the Swiss franc course was in favor of the latter.
There are many elements to the cost of a mortgage. These are not only costs generated by the bank, such as a bank commission, but also legal ones. It is necessary to establish a mortgage, which involves an entry in the land and mortgage register, and to pay notary costs. Often the fees for insurance against random events and life are also significant.
The latter is more and more often used by banks, which is mainly due to the long-term nature of this type of loan agreement. All mortgage costs, often referred to as CKK for short, are quite significant. That is why it is worth trying to compare mortgage loans accurately, as offers may differ significantly depending on the bank.
Comparing the numerous offers
Comparing the numerous offers available on the market can be extremely risky, so it’s worth seeking help. The easiest, most convenient and easiest method available are online comparison websites and loan calculators.
After providing basic data, such as the desired loan amount, property value, purpose of the loan and the period for which the loan will be repaid, the offers of various banks currently available on the market are presented. Be careful, however, because not all internet services can be sure of honestly presenting offers, so you should only use trusted mortgage comparison and calculators.
Another, slightly more certain is the use of services of a mortgage professional – the so-called mortgage adviser. The main task of such an advisor is to help the client choose the best credit offer, tailored to his options and preferences. In addition, his duties include broadly defined, personalized customer service.
Good professionals have a university degree in economics, to some extent they also boast knowledge of the law, and good insight on the market not only of mortgage loans, but also real estate in general. They are often employed in banks, consulting companies or other widely understood financial institutions.
Unfortunately, as with calculators and loan comparison services, be careful when using a mortgage adviser. While comparing mortgages is certainly not difficult for such an adviser, be careful whether they charge a commission from the bank. In such circumstances, the adviser may not present the best offer possible.
To sum up, when making such an important decision as choosing a mortgage, you should make a well-thought-out decision, and a good choice whether it is an online service or an advisor can allow you to accurately and reliably compare mortgages.