Mortgage – the whole truth

When buying a flat of their own, many people decide to take out a mortgage. It is a long-term type of bank loan. It is secured by a mortgage established in favour of the bank. Learn the details of this popular solution, the mortgage.

Which offer to choose?

We often begin the search for a bank that will grant us a mortgage for the chosen property by browsing websites. Remember that the offer a bank can make you depends on several factors, such as the type of your employment contract, the level of your earnings and your credit history. It is best to ask a financial adviser for help. Their task is to compare the offers of various banks and choose the most favourable one for the client. They also take care of sending documents to the branches. Remember that the borrower does not pay for financial advisory services. The adviser receives a commission from the bank in which the loan is eventually taken out.

Is a mortgage worth it?

A mortgage is the type of loan with the lowest interest rate. The security for the bank is the property owned by the borrower. If the debt is not repaid, the bank has the right to sell the property. A mortgage is a very complicated product. Types of this kind of loan are divided according to their purpose into loans for:

• the purchase of any property
• building a house (construction mortgage)
• repaying other, previously taken loans (consolidation loan)
• any purpose (mortgage-secured loans).

Parameters that make up a mortgage

There are a great many parameters that make up a mortgage and thereby affect the amount to be repaid. To show you how complex this product is, below we list examples of the components of a mortgage. They are:

• margin
• commission
• insurance
• currency conversion costs
• valuation report
• cost of early repayment of the loan
• linking other banking products to the mortgage.

READ ALSO – BIK AND APPLYING FOR A MORTGAGE

Some of the factors listed may change during the repayment period of the loan. If you are planning to buy a flat, a house, commercial premises or a building plot, get in touch with REMAX Gold. Ask our staff about the possibility of obtaining a mortgage. With their help you can quickly obtain a loan on good terms.