Mortgage Ranking – Housing loan
January 25, 2020
Mortgages provide us with a sufficient financial injection for the purchase or comprehensive refurbishment of an apartment, and even construction of a house. However, a housing loan is a commitment for many years, so you should choose your offer carefully.
Get to know our mortgage ranking and bet on the best offer!
To buy your own apartment or build a house, most often we are forced to decide to incur debt in the bank. The cheapest solution is a mortgage. However, there is a lot of formalities associated with such debt.
Mortgages usually have a favorable interest rate, however, as they are a commitment for years, the appropriate offer should be selected with particular attention. Below is a mortgage ranking where you can find the best offers of the current month.
What influences the position in the mortgage ranking?
- interest rate,
- commission amount,
- the amount of required own payment,
- maximum loan period,
- additional benefits associated with the loan.
Read our ranking! You’ll also find tips below to help you choose the best mortgage .
How do you choose the best mortgage?
When choosing an offer, we should pay attention to a number of factors. Below we present a short guide that will help you make a decision.
Mortgage – what to look for?
The most important factor that we should pay attention to is the APRC and, as a result, the total cost of the loan . The APRC consists of all fees that the bank will impose on us. Before we decide on the offer, let us ask the bank for a detailed calculation and familiarize ourselves with all fees.
The next decision to be made concerns the loan period . Let us remember that the longer the period, the greater the total amount we will have to pay back. However, the extension of the repayment period is associated with lower monthly installments. When we get to know the APRC calculated for our case, let’s calculate everything carefully and choose the loan period so that the installments do not burden us, while trying to repay the loan as soon as possible.
By adapting the terms of the loan to our capabilities, we can also choose equal or decreasing installments . What is the difference? The equal installment stays the same throughout the entire loan period (unless the interest rate changes) – at the beginning we pay the greater part of interest and a small capital, and at the end of the repayment mainly capital.
In the case of decreasing installments, we repay the same amount of capital all the time and the amount of interest decreases. This is because interest is charged on the value of other capital. Which solution is better? It all depends on our financial capabilities. If we are able to carry the initially high installments, let’s focus on decreasing installments. Equal installments guarantee us predictability and thus allow us to properly manage the household budget.
What affects the cost of the loan?
The credit terms offered by the bank depend on many factors and are adjusted individually to each borrower . If your creditworthiness is high and your credit history is positive, you can count on the lowest possible fees. What else affects the final cost of the mortgage?
The amount of income obtained by the borrower and the type of employment are important (the type of contract under which the employee is employed and the fact for which period it was concluded). The bank also draws attention to the number of people in the household. The amount of own contribution and the type of loan collateral are also important. You can count on better conditions if you pay a larger down payment. The credit amount also influences the risk assessment.