The average mortgage in Poland is currently around 250,000 dollars . The monthly installment of such a loan can be from 1100 dollars , but not everyone can count on the best conditions. In addition, the loan installment is not the only cost you will have to pay.
Mortgage loan for 300,000 dollars – installment, interest rate
In the case of an exemplary borrower, the bank will offer the lowest, very attractive interest rate. Loan installment for 300,000 dollars may amount to approx. $ 1,100 per month . However, it is not easy to meet all the bank’s requirements and get the lowest interest rate on the loan. It depends on several factors.
Own contribution required
20% of the property price must be in cash to be able to think about the cheapest loan. Some banks completely disqualify borrowers who have less than 20% own contribution. Fortunately, not all – there are still banks on the market where you will get a loan with a 10% own deposit .
From the bank’s point of view, the best (most reliable) borrower is a person who had loans in the past and repaid them on time. The bank may consider that the loan it grants will be repaid by the person without delay. The lower the risk for the bank, the lower the mortgage rate . If you have been late with paying installments, this does not mean that the bank will refuse you a loan, but its conditions may be slightly worse.
Banks are more willing to grant loans to people with good creditworthiness. In practice, this means that a borrower employed under an indefinite employment contract will receive a better interest rate, who is currently not paying back other loans. The person who borrows less than he could get is better, i.e. the loan will not be a heavy burden for the household budget.
Installment is not everything – other costs of the loan
When looking for a mortgage with the lowest installment, it is worth counting all overdraft costs. The bank that offers us the best interest rate, on which the monthly installment depends, may charge additional fees or require additional insurance from us. What are the additional costs of a mortgage?
Commission for granting a loan
It is usually a few percent. In the case of a loan for 300,000 dollars 2% commission will amount to 6,000 . Therefore, it is always worth checking how much you will have to pay for the loan payment.
Basic and always required is home insurance. But the bank can expect additional insurance, e.g. unemployment insurance, low own contribution insurance. Thanks to them you can get the lowest interest rate, but they will cost at least several hundred dollars a year.
Additional bank products (cross-sell)
A common method for lowering the loan installment is to use other bank products, e.g. a personal account or credit card. Unfortunately, fees may apply for the use of these products. These amounts will not be large, but it is worth considering whether we want to use these products or whether it is better to pay a loan installment several dozen dollars instead.
How do you compare offers and choose the cheapest mortgage?
First of all, compare the credit offers of several banks. The most important thing, however, is that these comparisons be made especially for you, taking into account your financial situation. Having individually prepared offers, you can be sure what the loan installment will be plus plus loan-related costs, and only on this basis will you be able to choose the cheapest loan.