What is a mortgage loan?
Are you a real estate owner? In this case, you have the option of taking a mortgage loan. Together with her, you can more easily fulfill your dreams thanks to the large amount of money you can get. How exactly do mortgages work and where can we take them?
I think each of us met already with the term loan mortgage or mortgage. However, it is worth separating these two offers at the very beginning. Mortgage loans are granted both by banks and by parabanks, ie loan companies. Thanks to the mortgage loan, we can receive financial resources for any purpose, for example for renovation, holiday trips, shopping. On the other hand, loans , mortgages, which in the context of services for private individuals include loans and to build a house, the bank loans deliberate only purchase or construction of real estate.
A mortgage loan – what exactly is it?
Together with a mortgage loan, we can receive a large sum of money – even several hundred thousand zlotys and more, depending on your creditworthiness. These loans are granted for long periods of up to 30 years, which allows for easy repayment of installments. Currently, we can take up to 80% of the collateral, which is a mortgage.
A mortgage is secured by a property – it can be a flat, a single-family house, a plot of land or a property to which we have the right of ownership. The real estate can no longer be subject to another mortgage. Due to a mortgage, a bank or other financial institution obtains its rights to it if we do not comply with the contract, i.e. we will not repay the debt. What’s more, the institution may request additional payments if the value of the property does not fully cover our debts.
The possibility of losing real estate is one of the main drawbacks of a mortgage loan. Therefore, we should always think carefully about signing such a contract. On the other hand, it is one of the best options to receive a loan for a high sum, also with attractive interest rates – lower than for cash or car loans.
Where for a mortgage loan ?
As we have already mentioned, mortgage loans are currently provided by banks and non-bank institutions. In the case of banks, we also need creditworthiness to obtain financing, i.e. mainly fixed income. We can not also have negative entries in databases such as BIK.
Obtaining a loan in a parabank is easier because loan companies do not have such complex requirements as banks. We can get a loan also at lower or irregular revenues, with negative entries in BIK. However, we must remember that non-bank loans of this type are associated with a higher interest rate, and we will not receive money in the value of up to 80% of real estate, but most often up to about 40-50%. For example, for a flat worth PLN 200,000, we will receive a loan of up to PLN 100,000. Location requirements may also appear, for example properties in the centers of larger cities are preferred.
So if you need a large sum and you own a property, you also have mortgage loans at your disposal.