O co chodzi z kredytem hipotecznym?

What is the mortgage about?

Ostania aktualizacja 5 December 2019

Buying a property is a tedious and complicated process that can take months and years. Just looking for a plot, browsing offers or viewing homes is the most pleasant aspects of such an action, although they are not easy and take a lot of time and energy. All the formalities related to the purchase of an apartment, house or plot are a nightmare that often makes us postpone our dreams into an indefinite future. Money is another problem. Not everyone can buy a house for cash, which is why banks offer us mortgages. Other forms of real estate financing rarely come into play, because they are huge amounts that only a large institution can do on a massive scale.

How is this type of loan different from other loans? First of all, a way of protection. The bank must have some collateral in the event of a borrower’s default, which is why he sets up a mortgage on the property that we buy for the loan. This means that a person who fails to pay his debts to the bank may be deprived of ownership of the acquired house, plot of land and everything that the purchase has enabled the loan. In fact, it’s simple and understandable.

You can guess that each bank does something different and tempts customers in different ways. However, in the vast majority of cases, or even in all of them, you will notice that there is a rule, some common pattern between all offers. Market laws and rules governing the world of finance mean that mortgages are quite similar to each other. Nevertheless, careful examination of individual offers gives great chances for savings. The market situation is constantly changing and has an ongoing impact on credit costs, as well as the conditions for their granting and repayment. It is not always possible to predict whether the costs will increase or decrease over time, but you can certainly find a favorable offer at a given moment and try to minimize the risk of unpleasant surprises in the future. Such a disaster has happened in recent years to people who have taken a loan in Swiss francs. This is a well-known and widely commented matter. People wanted to save, and they got in a lot of trouble. Many of them say they are ruined. The Pole is wise after the damage, but it’s good that in general, that’s why since 2013 new regulations have been introduced in this matter. The new regulations mean that the situation with francs or any other foreign currency is unlikely to happen again, and certainly not on such a scale. According to the new authorities, mortgage loans can only be taken in the currency in which the salary is collected.

You might think that a mortgage is sufficient collateral for a home, but it is not. The borrower also guarantees his assets. Not only the one he has at the time of taking the loan, but also the one he obtained later. Another collateral is the income of a person who promises to pay the installments. As in the case of assets, current income and what we will achieve in later years count as security measures. In addition, before the mortgage establishment process takes place, you can insure your loan or block your funds. You can also use the surety of a third party who has creditworthiness. Remember that it is really big money and the bank must feel safe before lending it to us.

Each service has its price, which is why the bank also charges fees for enabling us to use its funds. Therefore, apart from the collateral that we need to take care of, mortgage loans also have additional costs. Just paying back the borrowed amount is not enough, the bank must earn on this transaction. This can be done in many ways. The first and unavoidable with the loan are interest known to all of us, calculated on the amount we have to pay. Another is the bank commission, which is a direct remuneration for the bank for servicing our loan. In addition to these costs, you must also be ready to spend money with a notary public for establishing or completing the land and mortgage register for real estate. The loan agreement also includes a provision on possible contractual penalties for paying off the debt within a shorter period than the one contained in the agreement. So if we want to get rid of the ballast of monthly installments faster and we have cash that we can spend on it, we must bear in mind that the bank will impose these penalties and add them to our commitment. This solution was once used with any type of loan. However, the regulations have changed and currently only mortgages are charged with early repayment penalties. Often you do not think about it when signing the contract, because we do not expect a large flow of cash. However, there are various situations in life, such as inheriting a fortune from a deceased uncle. Therefore, it is worth remembering that in the event of faster repayment of our loan, which, however, is a considerable burden on the budget, we will be charged additional costs. It is worth reading the contracts carefully before signing, and even consulting their content with a specialist.