Costs of the loan include the following:
- commission which is one fee charged to a credit before the payment is made.
- interest which consists of a base rate and the bank margin. The base rate may be fixed or variable (often used for long-term loans).
- type of installments (equal or decreasing). An installment is a total amount of capital and interest installed due to be repaid in a specified period.
- Spread (in the case of foreign currency loans), which is expressed as a percentage of the difference between buying and selling rate of the currency the credit is denominated at.
- Cost of security (both interim and target) - loan repayment insurance - the cost of such insurance is frequently included in a raised interest rate of the loan until the mortgage is set. Such insurance does not require guarantors. The insurance against the risk of job loss and liquidation of economic activity - the bank may also require such insurance (usually it works for a period no longer than 5 years), in particular cases arising from a borrower’s family situation. One’s own promissory note blank - can be used as collateral provisions of the the repayment paid until mortgage is etablished. Guarantors - less frequently used temporary protection.
Target provisions: mortgage on the financed property- usually compulsory collateral of the credit
- Other fees when you start the loan (for example: for a bank account, the valuation of the property, mortgage establishment)
- Other fees in the credit period (for example: increasing amount of credit for extending the repayment period, for currency conversion, for the early repayment, for drafting the appendix to the contract).
Although most customers pay attention to the commission, it is not a key factor of the high cost, particularly when the loan is repaid over a long period of time. The level of the interest rate (and in particular the banking margins) and the fixed costs of security are of greater importance.
Source: http://www.familyfinanse.pl
An alien applying for a mortgage loan needs:
- a check
- settlment or fixed time residence permit
- proof of employment and wages in Poland
- bank statements in Poland up to 24 months
- minimum 15% of his/her own contribution
Each case is considered individually. To obtain a loan one must show gross earnings of about 3000 PLN (in some banks even higher). The interest rate on the loan for a foreigner may be higher than those for a Polish citizen.
A mortgage loan consultants can be asked for assistance.
To pre-pay term loan (interest cost savings), one will have to pay a fixed fee specified in the contract and / or a commission from the repaid loan tranche, which may amount to 1%.
Sample mortgage rates
• the highest interest rate
• the lowest interest rate
Source: "Report szybko.pl and Expander'a.
You can seek a credit intermediary assistance or refer to the offers of various banks via websites that enable comparing the terms of credits:
www.kredytyhipoteczne.org.pl
www.openfinance.pl
