If you are wondering how to choose the best mortgage then this article is about it. Loans for people living in New Zealand or other countries are more and more often granted by Polish banks. This means that more and more of you are wondering how to choose a mortgage.
How do you choose the best mortgage?
Before presenting important aspects when choosing a mortgage , it is worth considering whether we can really afford such a loan. It is very simple to calculate – all our monthly expenses should be calculated, including the estimated cost of the loan installment that we intend to pay back. In this way, you should check that this sum does not exceed all our revenues. To put it simply – it’s worth analyzing whether we won’t spend more than we earn. When we are sure that this is not the case, we can start comparing bank offers .
We mainly compare the cost of credit. The most important criterion for choosing a mortgage should be interest. In Poland, it changes over time, just as the interest rate levels on the market change. Therefore, it is worth paying special attention not only to the interest rate itself, but to the fixed portion of the loan, i.e. the margin. A good bank choice from the side of the loan margin determines the amount of the monthly installment throughout the loan period. Therefore, this criterion is one of the most important in assessing credit offers .
Land and mortgage register
In addition to interest and margins, it is worth paying special attention to other fees that the bank will charge. This basic fee is bridging insurance, which is paid until the mortgage is entered in the land and mortgage register. If you do not have your own contribution , you will also pay the so-called low contribution insurance. The insurance offered by the bank can be much more. Before you decide to choose additional insurance, it is worth checking how the price of a given insurance compares to real market offers.
It is also worth analyzing whether the insurance suggested by the bank gives us something valuable in return. This can be, for example, a margin reduction. It is worth being on your guard and checking if this reduction is really justified taking into account the price of the additional banking product . A significant proportion of banks should also pay for estimating the value of real estate.
To get through many banking offers and compare them effectively, it’s best to go to a good credit advisor . Remember that when choosing a loan, you should compare offers from banking institutions for the same loan period.