It is an ideal product for owners of indebted properties who want to raise additional funds to meet their needs. The advantage of such a loan is much better than in the case of conventional consumer loans, the actual annual interest rate, i.e. APR.
What is the purpose of a mortgage loan?
A loan under a mortgage in the form of a loan is the right solution to implement investments related to your own development, renovation work or the purchase of new equipment for an apartment.
In this way, you can also finance the purchase of a new car or booking your dream vacation, improve the liquidity of your home budget or prepare for any unforeseen expenses in the future.
This product is one of the cheaper methods to obtain additional funds. The bank practically does not interfere in the manner in which the borrower spends the money obtained in this way.
What is the difference between a loan and a mortgage?
The mortgage loan is a product intended mainly for owners of residential real estate. The basic differences between a loan and a mortgage loan indicate the intended use of the product, i.e. the loan can finance any purpose other than business operations, and the mortgage only for the purchase and finishing of real estate or building a house.
Thanks to mortgage collateral, the mortgage is much cheaper than conventional cash loans. Like a mortgage, it has a long-term nature. In most cases, it is granted for up to 20 years. The value of the loan, depending on the offer, may constitute up to 70% of the value of the flat or house being the collateral. Some banks provide for securing such a loan on real estate belonging to third parties.
Do I need creditworthiness to take out a mortgage?
Creditworthiness, understood as the ability to regularly repay liabilities incurred is necessary to grant a mortgage loan. It can be assessed on the basis of the following parameters: income and liabilities, number of persons in a household, sources of income, assessment in BIK (so-called scoring) and the age of the borrower. Consultations with an Good Finance advisor will help in obtaining a loan for the highest amount available, which depends on the value of the property and the result of the creditworthiness test.
APRC and the cost of the mortgage loan
APRC, i.e. the actual annual interest rate, is a standardized measure of the cost of credit. It is an ideal tool for quick comparison of offers. This ratio determines the total cost of the mortgage on an annual basis to be borne by the borrower. Thanks to the APRC indicator, the borrower can assess the offer without testing which component of costs, such as margin, interest rate, commission, handling fees and taxes or the cost of necessary additional services, has the greatest impact on the final cost of the loan.
APRC is a tool that allows each consumer to pre-select an offer. In order to perfectly match the financial product, it’s worth using the help of an Good Finance advisor. The knowledge and experience of advisers will help in negotiating individual components of the mortgage loan cost and in choosing the right promotional offer. The purpose of the consultation is to minimize the APRC indicator, i.e. the total cost of the mortgage loan.