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Urgent Payday Loans

Money in your pocket before payday Loans and credits

Money in your pocket before payday Loans and credits

We usually think of the monetary crisis at the end of the month. This is very normal for every person. Sometimes even a sudden emergency of financial stress comes at the end of the month.

Then it becomes difficult to agree on money. But now it is possible to arrange money quickly with the help of new loan schemes available in the market.

One great scheme that can be really helpful is an urgent payday loan. It will help you get money even before the next payday.

What is urgent payday loans?

payday loans

Urgent payday loans are short term loans that help the applicant to get cash for short term needs. This means that the money can be used for a short time and the amount given will be small. Interest rates will be high.

The criteria mentioned here are:

  1. The applicant’s age is the main criterion. The age should be at least 18 years.
  2. US citizenship is very much needed. The applicant should be provided with proof of SSN or citizenship with him proof of identification.
  3. He should not be involved in criminal activities.
  4. A savings bank account is required.

Is applying easy?

Is applying easy?

The procedure applied is very simple. It is not a lengthy examination of documents or other tedious formalities. It has a very simple form online. The applicant must provide their details on the form and submit it. The information will be kept confidential. Confirmation, there will be only a few minutes. This is a way to organize direct cash. The online method makes it really convenient for a layman to get money.

This is the case for all U.S. citizens, regardless of credit. Bad credit holders will be treated as well as good credit holders. There will be no difference between them.

Quick cash due to sudden needs

Quick cash due to sudden needs

Urgent payday loans will make quick cash due to sudden needs. The online application method is available 24/7. So, there will be no hurdle in applying. The amount can be received by e-transfer as well.

Addison Lin has made his master’s degree in business administration and specializes in his skills in finance. He constantly provides his expertise in lending and finance to public borrowers. For more information on fast payday loans, next day payday loans visit.

Loan for a construction plot – what conditions must we meet to take a loan for a plot?

Living in a big city ceases to be a symbol of many people’s dreams. Especially now, when apartment prices have been the highest for several years, Sunday coffee drunk on the terrace of your own home seems to be more tempting.

The construction process begins with finding the right land on which our property will stand. Check how to get a loan to buy a construction plot and start construction.

Purchase of a construction plot

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What are the average prices of construction plots in Poland

The price of a construction plot depends really on the size and location of the land. In large cities or on their outskirts prices will be much higher than in the case of small villages away from large agglomerations.

What types of plots can we buy?

Before applying for a loan, you should check what kind of plot you want to buy. Currently, these are plots:

construction – intended primarily for the construction of single-family houses and for services not harmful to the environment,

industrial – for other services that can be burdensome for the environment,

recreational – plots for summer houses,

Habitats – a specific type of plots, intended for building outbuildings related to the role, but also for houses after obtaining a building permit,

agricultural – designated for cultivation (you can “ungrind” such a plot, but this process is easier if the agricultural plot is worse),

forest – the least profitable acquisitions, usually they can not be used or sold profitably.

What to look for when buying a plot?

Before you plan to buy a plot, get acquainted with the spatial development plan. Such a move will allow you to check: what kind of building is allowed on a given plot, the maximum height of future buildings and the type of roof allowed.

Additionally, you should verify that the plot you are about to buy is a construction plot. To do this, all you need is:

Download the spatial development plan from the website of the town or commune office.

Check on the plan what the plot is intended for.

Look for detailed information assigned to the symbol of the area where our plot is located.

What is the nature of the loan for the purchase of a construction plot?

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The loan for the purchase of a construction plot is a similar product as the loan for the purchase of a house or flat. Therefore, when applying for a loan for the purchase of a plot of land, similar requirements must be met as for those applying for a housing loan.

Some banks (e.g. Credit Agricole) have in their offer loans that can be used to buy plots of any purpose: construction, construction with the construction of a house started or recreation.

A loan for a construction plot is most often a long-term commitment and, like a housing loan, it is granted in the Polish currency. Therefore, a person who applies for a loan to buy a plot of land must have good credit standing and have the required own contribution. A loan for the purchase of a plot of land may be granted up to 50% of the property value.

What types of plots can we finance with a bank loan?

We can finance all types of plots with the exception of agricultural property. Then, regardless of whether we are a natural person or an individual farmer, we will most likely not receive a loan.

Good to know

An exception may be agricultural plots, which constitute an access road to a public road including the basic real estate.

What loan should I choose to buy a construction plot?

The cost of buying a construction plot can be financed equally with a mortgage and a cash loan. The only question is what loan for a construction plot will be most favorable for us? Most people choose a mortgage much more often because it is a cheaper option.

However, if time plays a key role for us and we cannot afford to go through a long credit procedure, and in addition, we do not have enough own contribution, then you can opt for a cash loan, which should be enough to cover the costs associated with the purchase of the plot.

What loan for the purchase of a construction plot?

What loan for the purchase of a construction plot?

Regardless of whether you decide on a cash or mortgage loan, you should read the latest credit ranking and compare all available offers.

Mortgage loan for a construction plot

When deciding on a mortgage for the purchase of a plot, we must remember that, as with any mortgage, a mortgage is required.

In the case of a loan for an apartment or a house, the mortgage is a residential property, but if we decide to take a mortgage for a plot, we should present another property that will be used as collateral for the loan.

How do you know if someone took a loan from me?

If you are reading this article, you are probably wondering, “Can someone take a loan from me?”

Unfortunately, the answer is yes. In the age of the Internet, when most loans can be taken without leaving your home, just filling out the online form, you can not only take out a loan, claiming to be someone else but also set up a bank account on someone else’s data.

The so-called phishing. This method involves sending infected files via SMS or email.

The scammer impersonates another person or institution we know of (e.g. a bank) and sends us a seemingly important message. After entering the link provided in the message, we install the virus, and the person who sent it to us has access to our passwords and pins.

Can you take a loan for someone’s ID?

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Criminals who deal with extorting cash loans often use a stolen or forged ID document. This means that the thief can use not only your ID card but also your passport, driving license or even an army booklet.

Counterfeit documents are also not uncommon. Thieves create your new profile, inflating your income, changing your marital status or the number of dependents.

Is my PESEL number or personal data enough to take a loan?

In the world of finance, apart from bank loans, there are also quick loans, so-called Quick Loans This type of loan is granted by non-bank financial institutions that apply completely different restrictions than banks.

A person applying for a payday payment usually only needs to complete a simple form and provide personal data such as name and surname, PESEL number, place of residence, and number and series of ID cards.

However, if you read on the Internet or heard from a friend that “someone took a loan for my PESEL”, we are in a hurry to calm you down. The security and at the same time the verification that parabanks use is a verification transfer made from the account of the persons whose details were provided in the form.

There are companies that do not check their future borrowers in this way, but instead ask for a scan of ID card or additional documents.

How do you know if someone took a loan from me?

How do you know if someone took a loan from me?

Unfortunately, even if you are guarding your ID card and do not upload photos with the driving license you have just got into social media, you can still fall victim to credit fraudsters.

Fortunately, at any time you can check what is happening with your data and whether by accident someone is impersonating you in order to extort a loan.

To do this, all you have to do is set up an account in one of the business information office registers and purchase a one-off or periodic GFI report.

Where can you check if someone has taken a loan for me?

  • GFI – Good Finance Information

How can I protect myself against phishing scams?

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If you want to protect your data against credit scams, just follow these simple tips.

  • Do not take photos of your ID documents.

Regardless of whether you send them to someone or just keep them in the memory of your cell phone, there is a good chance that they will fall into the wrong hands.

  • Check your documents at least once a day.

Make a habit of checking whether you have any documents with you. Pay attention to this especially after you get off the bus or leave a crowded place.

  • Set up a secure login and use strong passwords.

Use the secure login option to your bank account, e.g. via SMS codes, and in places where you provide your data, use the so-called strong passwords (those with special characters, numbers, and uppercase and lowercase letters).

  • Use the GFI alerts.

For less than USD 2 a month you can receive notifications, so-called alerts sent by the Good Finance Information. After each attempt to make a commitment to your data, you will receive a text notification.

  • Use the network safely.

The Internet is not only social media but also all websites. Those on which you provide your personal data should have so-called green padlock visible in the address bar. This symbol means that the website is encrypted and your data is secure.

  • Do not make verification transfers.

Fraudsters often pretend to be companies that are looking for employees and wanting to verify a candidate, they ask for a verification transfer. Do not agree to this in any case, especially if the recipient of the transfer is someone you do not know.

Loan for proof – how to take?

Unexpected expenses, as the name suggests, can’t be predicted, so it’s no surprise that sometimes we don’t have the funds to cover them. A way out of the situation may be a payday on evidence. Where to find payday loans for proof and how to get them? Advise!

An identity card is the absolute minimum when it comes to the documents needed to take out a loan regardless of the lender’s policy. Taking a cash loan, it is unlikely that proof alone would be enough, but no additional documents are needed for quick loans.

When applying for payday loans, provide personal data, personal identification number, ID number and series. The data is verified by a verification transfer or by logging in through a special application to your online banking account. Companies granting payday loans without proof of personal data verification should immediately make us vigilant and ideally avoid them with a wide arc.

Payday loans for proof – what are they?

Payday loans for proof - what are they?

Payday loans for proof without certificates is a simple form of quick cash loans. In contrast to traditional bank loans, they are granted by non-bank companies. These types of enterprises specialize in examining applications and granting payday loans as proof without certificates.

Usually, lenders do not require their clients to provide proof of earnings or employment. The exceptions are situations when the data provided in the form raises doubts. The minimum number of formalities means that payday ID card is easily available, and the money usually affects the account indicated by the borrower shortly after submitting the application.

What do you need to take payday loan as evidence?

What do you need to take payday pay as evidence?

To get payday ID cards for 18 years, all you have to do is stay in the country and have a valid ID, eg an ID card. The ease of obtaining financing is tempting, which is why some people seem to forget that this payday loan is a liability like any other, which will have to be repaid sooner or later.

Is the payday loan really a good and safe solution? When deciding on payday loans available on the market for proof without verification, first review our table and answer yourself to 3 basic questions.

Loan for proof – what to look for?

Loan for proof - what to look for?

If you have already considered all the pros and cons of taking out a loan and you have come to the conclusion that payday loan proof online is the best way out of this situation, it’s time to check how to apply for the necessary amount as easily and easily as possible.

Choosing a cash loan involves checking a number of data. The numbers and parameters in individual offers may differ. To help you make the right decision, it’s worth comparing payday loans without credit check, ie to compare available options and learn about the latest promotions.

The calculator will display the proposals of specific companies together with the conditions for granting a payday loan without credit check as proof. Our task will only be to determine the most important parameters such as choosing the loan amount and repayment period.

Thanks to the “Take a loan” option, payday loan online is within our reach – it directs us directly to the page of the offer we are interested in.

How to take a loan for an apartment without a down payment?

You dream of “living on your own”, you have already calculated your creditworthiness and you know that you can afford a mortgage. Have you thought if your savings will be enough to cover your own contribution?

Learn how to take a mortgage without a down payment.  

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Until quite recently, banks granted mortgage loans to their clients without the required own contribution.

However, when in 2014 the Good Finance Investment Corporation introduced the Good Finance Bank, the threshold for borrowers to have a minimum own contribution increased by 5%. per year (up to the current level of 20%). As you can easily count, with real estate prices we should have around 30-80 thousand in our pocket. zł.

Sounds terrible? Fortunately, even if you have not managed to accumulate adequate savings, you do not have to give up the dream of your own apartment. There are ways to convince the bank to give you a mortgage anyway.

Loans without own contribution – that is, with the family, preferably not only in the photo

A cash donation can effectively supplement a missing own contribution. It is best if the donor is a person close to us (parents, spouse, grandparents, siblings) because they are in the first tax group, where the amount exempt from tax can be as much as 19 274 USD.

Remember to write down the donation agreement!

Any donation, even this one, from a loved one is subject to inheritance and donation tax and requires notification to the tax office.

A mortgage with a low down payment?

A mortgage with a low down payment?

In some banks, you can count on 10 percent. own contribution provided that you take out additional insurance. In practice, if you decide on such a solution, you will pay a higher monthly installment until the loan balance drops below 80%. property values.

Mortgage Calculator

The loan balance is the amount that the borrower must pay back to the bank (without interest). In addition to the amount borrowed, the balance of the loan may include other fees, such as insurance or commission.

Low own contribution? Use the funds accumulated on your retirement account

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Some banks are willing to qualify the money you put aside under GFI and GFIC as a substitute for own contribution. To use this option, you do not have to withdraw the accumulated funds – the bank will secure the accumulated funds up to the amount needed.

It is important that the agreement with the bank does not assume that the accumulated funds will be used to repay the loan. Premature liquidation of funds from a retirement account is associated with the need to pay a commission and any income tax and capital gains tax.

Low own contribution and a flat from the secondary market

Many financial institutions are willing to accept the difference between a property valuation and purchase price as their own contribution. However, in this case, banks, despite everything, expect to pay 10 percent. own contribution, which is calculated either on the purchase price or on the valuation value (depending on which of these amounts is lower).

Low own contribution and security with another property

If you already have another flat or property, the bank may accept it as your own contribution. If you do not own your apartment, nothing prevents the bank from accepting a property that belongs to another person close to you. Remember that it is not enough just to enter in the mortgage of the owner, but he will have to take the loan with you.

Low own contribution – plot for the construction of a house

There are banks that include a plot of land where your future home should stand as required own contribution. Importantly, the value of the plot must be confirmed by an appraiser, even if the price is listed in the notarial deed.

The bank will take into account the value of the plot and the cost estimate, i.e. determine the future value of the property. In practice, when building a house, an appraisal will be required. If the plot is worth 150 thousand USD, this amount will be accepted as own contribution.

Low own contribution and funds for the renovation

The bank may also count on your own contribution that you have accumulated for the renovation of your new apartment. How does this work in practice? The value of the property will be the sum of its price and the cost estimate of the planned works – on this basis the bank will calculate, among others, the required amount of own contribution.

Good Finance Mortgage Help from government programs

Until the end of January 2018, it was possible to submit an application in the government’s “Apartment for the Young” program, thanks to which people who met certain criteria did not have to worry about their own contribution.

Most lovely, at the beginning of 2019, the “Individual Housing Accounts” program will be launched, which will have the task of facilitating the financing of the purchase of an apartment or the construction of the real estate.

At the moment, the details of this program are not yet known, but we will definitely follow this project on a regular basis.

If you are interested in a mortgage and are looking for the perfect apartment on the secondary market or on the primary market, read the texts from the 7 steps cycle to the perfect apartment.

Consumer Credit Act – the most important assumptions and principles for the protection of borrowers

The introduction of the provisions of the Act on consumer credit in Poland, as early as 2011, was a necessity and a consequence of the implementation into the Polish legal order of Directive 2008/48 / EC of the European Parliament and of the Council of April 23, 2008, on consumer credit agreements (Dz. EU Official Journal L Series from 2008 No. 133, p. 66, as amended).

Currently, this Directive has changed, and the Directive of the European Parliament and of the Council 2014/17 / EU of 4 February 2014 on consumer credit agreements related to residential real estate is in force. The directive was issued in order to unify the consumer credit market within the European Union.

Thanks to the Consumer Credit Act, it was possible to increase the legal protection granted to consumers when they incur credit obligations with banks and other types of credit institutions.

Who is affected by the Consumer Credit Act?

Who is affected by the Consumer Credit Act?

We already know what is meant by the concept of the Consumer Credit Act. However, it is worth saying who is affected by the Consumer Credit Act? Its provisions apply to two parties to the loan agreement – borrowers and lenders, but also to loan brokers.

In such a case, the borrower is the consumer, i.e. a person who meets the conditions for being considered a consumer in accordance with the provisions of the Act of 23 April 1964 – Civil Code. Article 22 1 indicates that a consumer is a natural person who performs with the entrepreneur a legal act not related directly to his business or professional activity.

The other party to the contract is the lender, i.e. a bank, cooperative savings and credit union, as well as other financial institutions, including loan companies, and even natural persons conducting business activities.

The lender is simply an entrepreneur within the meaning of the Act of 23 April 1964 – Civil Code, which, in the scope of its business or professional activity, grants or promises to grant credit to a consumer.

The entrepreneur, in turn, is a natural person, a legal person and an organizational unit conducting business or professional activity on its own behalf. There are also credit intermediaries, i.e. entrepreneurs within the meaning of the Civil Code, other than the lender, who in the scope of their business or professional activity obtain financial benefits, including remuneration from the consumer.

They carry out actual or legal activities related to the preparation, offer or conclusion of credit agreements, acting for a fee.

Since when is the Consumer Credit Act in force?

Since when is the Consumer Credit Act in force?

On May 12, 2011, the provisions of the Act on the Consumer Credit Act were adopted. Since when is this act in force? Well, it entered into force on December 18, 2011, and at the same time replaced the Act of July 20, 2001, on consumer credit.

In addition, on March 11, 2016, an amendment to the Consumer Credit Act came into force, which, among others set limits on non-interest loan costs. The modification of its provisions also included a draft amendment to the so-called Anti-usury Act of 2019.

Amendments to the Consumer Credit Act

As we have already mentioned, the first major amendment to the Consumer Credit Act entered into force in 2011. The new act was an implementation of the EU directive. What changes in the Consumer Credit Act came into effect then? This is best shown in the table below:

In 2016, the Consumer Credit Act was amended again. The changes that were introduced then were mainly issues related to the APRC. The new act on consumer credit has been amended in response to the so-called anti-usury act.

At that time, the maximum amount of non-interest loans or credit costs was introduced. They should not exceed:

  • 25% total loan amount (permanent),
  • 30 percent of the total amount of consumer credit per annum (variable part),
  • 100% of the total value of the loan if it is granted for several years.

The maximum fees connected with arrears in the payment of receivables were also limited by law. The highest fee for delay in annual terms may not exceed twice the statutory interest rate.

Along with the amendment to the Act on consumer credit, a Register of Loan Companies was also created, which is supervised by the Polish Financial Supervision Authority. Every legally operating loan company must obtain an entry in such a register.

Main provisions of the Consumer Credit Act

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The most important thing in the Consumer Credit Act is to define what should also be understood by the term “consumer credit”. In connection with applicable regulations, this type of loan is any loan granted in the amount not exceeding USD 255 550 or the equivalent of this amount in a currency other than USD.

Consumer credit should be granted by the lender to the consumer in the scope of conducted business activity. A consumer loan agreement can also be understood as a loan agreement not secured by a mortgage, which is intended for the renovation of a house or apartment in the amount not exceeding USD 255,550.

The Consumer Credit Act includes the main provisions regarding the definition of such loans in the concept of consumer credit. It houses:

  • Loan agreement.
  • Credit agreement within the meaning of the Banking Law.
  • Agreement on deferred to the consumer the date of fulfilling the cash benefit, if he is obliged to bear any costs related to the deferral of the performance of the benefit.
  • Credit agreement, in which the creditor incurs a liability to a third party and the consumer undertakes to return the fulfilled benefit to the creditor.
  • Revolving loan agreement.

A consumer credit agreement should be concluded in writing unless separate provisions provide for a different specific form for such a contract. It should be formulated in a clear and understandable way for each party.

A loan for those in debt without creditworthiness

Loans for those in debt are for people who have or have had in the past, problems with paying their debts. Check if you have a loan with a negative credit history in BIK.

Loan for those in debt without creditworthiness

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A loan for those in debt without creditworthiness is an offer of non-bank loan companies that grant so-called quick cash loans – payday loans. It is an alternative to the credit offer of banks that provide financing only to persons with creditworthiness.

Online loans are aimed at people who may have:

  • problems paying off their obligations,
  • negative credit history in GFI (Credit Information Bureau) or GC,
  • arrears collected by the bailiff.

An important factor that determines the granting of loans for those in debt is timely repayment of the current debt.

Do you know that…

According to data provided by the Good Finance – Polish consumers in 2018 took out consumer loans for a total value of USD 68 billion.

Where to borrow money without creditworthiness?

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Regardless of whether your debt is an unpaid loan installment or unregulated gas or water bills – you can apply for loans for those in debt online.

There are many offers on the market, but to find the one that best suits your needs, use the payday compare tool. You can compare all available offers of non-bank companies, providing a specific repayment period and the amount you are interested in.

The presented proposals will differ from each other in the amount of the monthly installment and the total cost of the loan. You will also compare GFI loans that interest you.

Loan for those in debt – how to get it quickly?

Loan for those in debt - how to get it quickly?

The procedure for obtaining a loan for an indebted person is much shorter than when taking a standard loan. The lender is only interested in the amount and regularity of inflows to the account.

Usually, there is no need to provide an employment contract and other certificates. All you need is your ID card and account statement. Most loan companies make loans online, you won’t have to move from the couch.

A consolidation loan without creditworthiness

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A consolidation loan is a type of financing that allows you to combine all your loans into one installment. Until recently, only banks could offer their clients consolidation loans. Today, even people without creditworthiness can get a consolidation loan – from a non-bank company or private investors.

Non -bank companies that grant a consolidation loan to those in debt accept various sources of income. Depending on the company that grants the loan, you may be required to provide proof of employment, a ZUS certificate or a bank statement that confirms your receipt.

When you take out a debt consolidation loan, you must have collateral. There are companies on the market that grant consolidation loans without collateral in the form of pledges.

Consolidation loan without creditworthiness – what documents?

Consolidation loan without creditworthiness - what documents?

As in the case of cash loans for those in debt – an ID document (ID card) is sufficient. If a foreigner wants to take a loan, he must submit a document confirming the right to permanent residence on the territory of the country.

In addition to the ID document, you must complete all loan agreements that you want to consolidate. It can be a mortgage, cash loan or credit card agreement. You will also need a debt certificate – the loan amount will be calculated on this basis.

How to lower your mortgage costs? – 8 ways to lower your mortgage loan

Everyone would like to pay for the mortgage as little as possible. Already at the stage of choosing the commitment, it is worth reaching for the mortgage credit ranking, which collects in one place the current offers of financial liabilities with mortgage collateral.

It is easier for a customer to choose a specific loan when he sees the characteristics and costs of at least several similar proposals. Let’s see what else to do to minimize the cost of the mortgage.

What does the cost of the mortgage consist of?

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The basic cost of a mortgage is its interest, repaid by the borrower on a monthly basis, together with each principal and interest installment. The total cost of credit is basically influenced by two types of costs:

  • interest expenses, depending on the mortgage interest rate;
  • non-interest expenses not related to credit interest.

The mortgage interest rate depends on two factors:

  • interest rate – variable, independent of the bank, set by the Good Finance Investment according to the main interest rates of the Monetary Policy Council (Monetary Policy Council) – it can be, e.g. GFIC 3M or GFIC 6M;
  • bank margin – a fixed value determined by the bank, which does not change when the mortgage is repaid but is negotiated by the borrower at the bank.

The customer can only influence the amount of the credit margin, on which the mortgage interest rate depends. Its level depends on several parameters, including the currency of the loan, the customer’s own contribution or the credit capacity and history.

Non-interest costs of mortgage loans include such fees as:

  • commission for joining the loan, charged by the bank;
  • fee for considering the loan application;
  • fee for the valuation of the property, which is to be used as collateral for loan repayment;
  • compulsory insurance premium, including bridging insurance until the mortgage is in force for the benefit of the bank or low own down payment insurance;
  • other fees.

The total credit costs are within the APRC mortgage. APRC is the annual real interest rate on the loan that includes all costs associated with the loan, including the change in the time value of money.

How to reduce the cost of a mortgage?

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Mortgage costs and usually these costs are not small, especially when the repayment of the liability is spread over many years. However, you can take appropriate steps to reduce this cost. We give 8 such ways.

Comparison of offers from several banks

The customer can do a lot to reduce his costs before starting negotiations with the selected bank where he wants to take out a mortgage. We suggest taking your time to compare bank offers. The best offer may not necessarily be the bank’s proposal where the customer has their personal account.

The most important is to compare the proposals of a few or several lenders. It is worth verifying whether, with a given customer’s creditworthiness, you can get a loan and in which bank such a commitment will be as cheap as possible.

You don’t have to collect offers yourself. Much faster verification can be done thanks to the mortgage comparison website, which presents current proposals from various banks.

Rational use of bank promotions

Many banks periodically organize various mortgage loan promotions, for example, lowering the commission for joining the commitment or the loan margin. It is worth recalculating whether such an offer is really as attractive as it seems.

Sometimes the bank’s margin is lowered only for a certain period of time, after which it returns to its original level, which will not necessarily be lower compared to mortgage offers from other banks.

In addition, it may turn out that the customer, of course, has the opportunity to take advantage of an attractive bank promotion for a mortgage, but only if, at the same time, when he decides to commit, e.g. to use a credit card or offer on a bank account.

Care of additional products

Banks are often willing to offer the customer better mortgage terms in exchange for using another, additional product. This is cross-selling – a solution whose choice can often pay off. First, however, the borrower should read the terms of use of additional products in detail.

If the requirement to use an attractive credit offer is setting up a free bank account, then there is no problem, but if the bank requires setting up a paid account and taking an additional credit card, it may entail some fees, “eating” benefits resulting from the reduction mortgage costs.

Negotiating mortgage terms

It seems obvious that one way to reduce the costs associated with taking out a mortgage will be negotiating the terms of the loan agreement. However, many customers are unaware that this is possible.

A client’s negotiating position is stronger if he has:

  • high own contribution to the loan,
  • good credit history in GFI,
  • high creditworthiness confirmed by relevant documents.

Negotiating the terms of the contract should be preceded by the borrower with adequate preparation for the interview with a bank employee. During the negotiations, the client may refer to many years of cooperation with a banking institution, high own contribution and other factors in his favor.

Shorter repayment period

Borrowing money under a mortgage for a shorter period of time will reduce your total borrowing costs. The sooner we get rid of the debt, the better, although it will probably involve paying monthly relatively higher loan installments.

On the other hand, the shorter loan term will result in interest being charged shorter and, as a result, lower. The differences between mortgages taken for 15 or 30 years may amount to tens of thousands of USD.

Mortgage Refinancing

Customers who have been paying back their mortgage for some time but want to reduce their installments may try to refinance their commitment. This involves transferring the loan to another bank, which may be associated with the possibility of developing more favorable loan terms than the current ones.

However, it cannot be ruled out that with such an operation you will have to pay a fee for the early repayment of the mortgage in the parent bank, and in the new bank – a commission for granting the obligation.

Early repayment of the mortgage

Early repayment of the loan to the bank is another way to reduce the cost of the mortgage. At any time, the borrower may make its early repayment – total or partial, in accordance with the Act of March 23, 2017. Then he can also recover money for interest and other costs that fell during the period for which the loan agreement with the bank was shortened.

Importantly, in the case of loans bearing interest at a variable interest rate, after 3 years of regular loan repayment, the bank may not charge the borrower for early repayment. When it comes to loans with a fixed interest rate, the bank has the right to always charge such a fee, which is why it is worth checking it out before you pay off your mortgage.

Loan repayment according to decreasing installments

Borrowers can most often decide whether they want to repay their mortgage according to decreasing installments or equal installments during the loan period.

With decreasing installments, a fixed amount of capital is given to the bank every month and a different amount of interest calculated according to the outstanding liability. The advantage of such a loan repayment mode is that the debt is given faster.

Thus, the client gives the bank less interest in total than in the equal installments system. The only problem is that the banks make it possible to pay off the mortgage in decreasing installments with very good creditworthiness of the client.

How to reduce the cost of a mortgage in francs?

money

In the case of franc mortgage loans, the solution to reduce the cost of lending is the repayment of principal and interest installments directly in a foreign currency. This way you can reduce the costs of currency spread.

In addition, judicial valorization may also be applied to the mortgage contract. It is a civil law institution that enables a court to change the amount of the benefit in the event of a significant change in the purchasing power of money after the liability arises.

Many borrowers of USD mortgages took them when they paid 2-3 CHF for 1 CHF on the currency market. Currently, it is even twice as much, which is why the possibility of using valorization seems most justified.

Holders of loans in francs can ask the court to determine the correct amount of the liability to the lender, taking into account the actual cost of granting the loan by the bank.