Why is a mortgage loan a good option?
If you have a property that can be used to secure a loan, then the mortgage loan turns out to be a good source of financing that allows you to get a large amount for any purpose, spread over a long period and with a relatively low repayment installment. However, in the case of low amounts, the mortgage loan loses in favor of a cash loan, which in this case is definitely cheaper.
A mortgage loan may be secured by a house, flat or plot – and the money borrowed can be used for any purpose – for example, a new car, holidays, current expenses or education.
The mortgage loan is offered by most Polish banks. The best place to get acquainted with all the offers is the internet. Without leaving your home, you can take advantage of useful tools, such as a loan calculator or loan comparison engine. The loan procedure can be easily initiated online, by completing a non-binding information form. There are also no restrictions on the loan currency. Loans in PLN and foreign currencies are available: Euro, Dollar, Pound, Swiss Franc.
Costs and terms of the mortgage loan.
The interest rate on the mortgage loan is always lower than the interest rate on the cash loan, however, it may depend on the ratio of the loaned amount to the value of the property on which the mortgage entry is to be entered. Banks will also be rather reluctant to borrow an amount exceeding 70% of the value of the property.
The procedure for granting a mortgage requires more documents and “settling” than other loans and credits or credit cards, for which you often only need a certificate from the workplace, a statement of income and an ID card. In the case of a mortgage loan, more “papers” are needed. The main thing is, of course, an entry into the mortgage (to the land and mortgage register), which is payable. You also have to pay the costs when deleting an entry from land and mortgage registers – after paying off the loan. In addition, banks may require property valuation, bridge insurance, life insurance and other fees. Before signing a loan agreement, be sure to read the entire procedure and all required documents and fees – only after summarizing all costs you will be able to objectively assess the costs associated with the loan offer.