And it’s not about extremely cheap consumer credit, but about a mortgage loan. Since the T recommendation has been amended to change the creditworthiness calculation rules, many potential borrowers have left the bank counterfeit. Current earnings and savings that would qualify them for a loan a year earlier, do not give them enough capacity to get money for a major renovation or car. At the time of recommendation, creditworthiness is increasingly being replaced by a mortgage. It allows you to take a mortgage, i.e. a loan for any purpose secured by the property.
For the same amounts, the mortgage interest rate is more than half that of a traditional consumer loan – says Łukasz Wojcieszak from Good Finance, an online mortgage broker. – This is because the bank entry in the mortgage book is one of the surest safeguards.
The mortgage also significantly affects your creditworthiness
With the same earnings, the bank will lend the customer up to three times as much under a mortgage loan as it would be ready to provide like a cash loan – explains Łukasz Wojcieszak.
A mortgage can also be salvation in case of problems with repayment of loans that we took during the prosperity period and which are now difficult for us to pay back. It’s great for consolidating several loans. Only mortgages are cheaper, but the amount must be allocated for housing purposes.
He has the best offer for a customer who needs 100,000 USD and has a property free of charge worth at least 200 thousand. USD. The monthly installment of such a loan, spread over 20 years, will be USD 788 at an interest rate of 7.21 percent if the customer also sets up an account in this bank.
Mortgage loans still have undiscovered growth
Potential of the entire mortgage market – emphasizes Łukasz Wojcieszak. – According to dollarstat data, two-thirds of Poles live in ownership apartments, which have never been charged with credit.
The nominal interest rate on unsecured cash loans can reach up to 20%. This, compared to just over seven, convinces to take advantage of the loan offer, which is secured by a flat.
However, the mortgage has its disadvantages. Most banks require a costly property valuation, which the client must arrange on their own before considering the application. You should also take care of formalities related to signing up for a mortgage, and the procedure for granting this type of loan is quite long. But, although it comes with high upfront costs, it’s beneficial for many people.