We have prepared a series of recordings for you.
We want you to come to the meeting with an outline in your head of the area we are going to cover. You will find on our platform videos that address the most important, fundamental issues of taking out a mortgage. Some of them relate more to you when it comes to, for example, the issue of creditworthiness itself, some of them develop other threads, less universal, but they should also be exhausted at the very beginning. We want you to have a certain foundation when coming to the meeting so that it is as productive as possible for you – we respect your time. We invite you to watch and possibly ask questions already at the meeting.
1. Interest Rates and Bank Margins
Interest rates on your mortgage consist of the bank’s margin and a reference rate. While the reference rate (like WIBOR/WIRON) is generally the same across banks, the margin offered by each bank can vary. Here’s why it’s important:
- Bank Margin – this is the portion of the interest rate that the bank adds as profit. A higher margin increases your overall interest rate and monthly mortgage payments.
- Impact on Monthly Payments – the total interest rate directly affects your monthly mortgage payments, impacting your budget and loan affordability.
2. Fees
There are two main types of fees associated with mortgages: preparation fees and prepayment penalties.
- Preparation Fee – also known as the loan origination fee, this is a one-time fee charged by the bank to set up the loan. Some banks may waive this fee in exchange for higher interest rates.
- Prepayment Penalty – this fee applies if you pay off your mortgage early, either by selling the property, refinancing, or making lump-sum payments. Some banks allow penalty-free prepayments after a certain period, usually three years, due to regulations.
3. Insurance Policies
Various insurance policies may be required or offered with your mortgage:
- Life Insurance – while not mandatory, some banks offer it to cover the loan in case of the borrower’s death.
- Job Loss Insurance – also optional, this covers loan payments if you lose your job.
- Low Down Payment Insurance – required if your down payment is less than 20%, covering the additional risk to the bank.
- Bridge Insurance – covers the period until the mortgage is registered in the property’s land and mortgage register.
- Property Insurance – mandatory to protect the property against damages.
4. Collateral Valuation
The valuation of the property you are using as collateral is crucial in determining the loan amount and conditions.
- Property Valuation – an appraisal by a certified valuer determines the market value of the property. This can cost between PLN 900 and PLN 1,500 depending on the property type.
- Impact on Loan-to-Value (LTV) Ratio – the LTV ratio compares the loan amount to the property’s value. A lower LTV ratio (higher equity) is preferable as it reduces the bank’s risk and may result in better loan terms.
5. Additional Factors (Cross-Sell Products)
Banks may require or offer additional products and services as part of the mortgage package:
Other Products – various other products, like savings accounts or investment plans, might be included. While these products can offer benefits, they can also increase your overall costs.
Bank Account – some banks require you to open an account and deposit your salary.
Credit Card – banks may offer or require a credit card as part of the mortgage package.
Why you should consult your situation with our experts?
Every financial situation is unique, which is why an individual approach to choosing a mortgage loan is so important. Our assumptions are only a simulation, and your conditions may differ. That’s why we encourage you to contact our experts who will:
- Analyze your individual financial situation
- Find the best loan offers available on the market
- Help negotiate with the bank
- Provide support at every stage of the loan process
By working with us, you can be sure that the selected mortgage loan will be perfectly tailored to your financial situation and future plans.
Contact Us
Consult your situation with our Experts. Take advantage of our knowledge and 16 years of experience to make the best financial decision. Remember, working with us is completely free of charge!
Call us on +48 12 352 12 12 or fill out the contact form on contact page to schedule a free consultation. We are here to help you!