From the data of the Central Statistical Office and the Polish Financial Supervision Authority, it can be concluded that over 60% of apartments on our market are purchased without a loan. Such optimistic data results mainly from the huge interest in real estate investments. That is why so many people buy an apartment for cash. Most often, however, we buy the first apartment for ourselves with a loan. Buying real estate is a huge event in the life of every buyer. It is usually a huge investment that is undertaken for several dozen years.
We need our own funds for each mortgage loan. Regardless of whether we decide to buy an apartment from the secondary market or from the developer Kraków we need to get funds for our own contribution. Depending on the banks, it is now between 10 and 20%. In the case of a property worth PLN 300,000, we will need PLN 30,000 or PLN 60,000, respectively. For many, this is a huge amount that is difficult to put aside. Therefore, we have to prepare for a long time to buy real estate. Own funds cannot come from loans, we sign such a declaration with the contract. However, very often clients decide to take such a step and take a cash loan while completing the formalities so that it is not yet reported to the Credit Information Bureau, from where all banks obtain information about debts.
How do I find a good mortgage?
Very often, when deciding to buy a property from a Krakow developer, we have the opportunity to use a credit advisor cooperating with the company. The specialist knows the offer of all banks on the market very well and will be able to choose the best option. A loan advisor can very easily check in special calculators what the installment will look like in all available banks. Thanks to this, we will be able to easily compare which option is also the best for us. It is the same when submitting applications, a credit advisor can submit them to several banks, which will protect us against a possible refusal. There will always be another option that we can use.
We can also decide to look for a loan ourselves at any time. It is important to be interested in what a loan looks like when you buy an apartment from a developer in Kraków. We should decide on this form of looking for a loan if we have at least basic knowledge about banking products. Without it, the presented offers will tell us little and we will choose the one that will be best presented and not necessarily financially beneficial for us. It is enough to find a good advisor who will be able to skillfully indicate all the parameters of the product.
What to look for when making a loan?
Mortgage costs are the most important for every client. Most often, however, we compare the costs of the monthly installment, forgetting all additional fees. In this way, we can and will have the lowest installment, but at the same time we will pay for the account, payment and credit card, insurance or commission. We should pay attention to the overall cost. The installment itself is the bank’s margin expressed as a percentage, combined with a three- or six-month WIBOR. Additionally, in most banks we have to decide on life and real estate insurance. These insurances are mandatory, but it does not mean that we have to purchase them through the bank, we can decide to buy policies ourselves with the assignment transferred to the bank.
Very often banks charge a commission – its amount and method of charging is of great importance to the overall costs. Many banks also require a low down payment insurance for their 10 percent contribution, which means additional fees for us. There are banks that cover the costs of such insurance. We will also meet with compulsory unemployment insurance, usually for about 5 years, which will give us an additional cost of several thousand zlotys. We must also note that when buying a flat from the developer Kraków , the bank will pay us the loan in tranches. Each time when such a tranche is paid out, we will have to visit the bank.
Very often when buying an apartment from the developer Kraków we focus only on the cost of the loan, forgetting that we will need additional funds in cash. First of all, we have to pay for the services of a notary, and it costs several thousand zlotys. It all depends on the value of the property, because the notary public pays the tax on our behalf. Perhaps, when buying an apartment from a specific developer, he will be able to recommend a cooperating notary public who will charge us a lower rate. In addition, if an agent helped us in looking for a flat, we also need to have cash for him. It will also be several thousand commission. In total, loan-related costs, which we rarely think about, can be even several thousand. For many buyers, this amount is a big surprise, so they have to use a cash loan or loans from friends.