You should take into account that this is a large financial commitment for a dozen or so or several dozen years. What should you know and what to remember before taking such a loan? It is worth getting interested in several important things, such as interest rates on loans, installments, commissions and insurance. You also need to be aware of increased costs, especially at the beginning of the first stage of the loan. They are associated, among others, with the launch of a loan or insurance. It is also possible that the loan installment may change in the future and increase due to interest rate fluctuations. Is it still worth taking a mortgage?
The first thing any potential borrower is considering is the amount that the bank can borrow. The higher the better. Then we count on quick completion of formalities, because in the end we want to receive money as soon as possible. Another element that increases the attractiveness of the loan is, of course, favorable interest rate and low commission. To make matters worse, we fall into too much self-confidence and decide on a long-term loan – at least 30 years old – because it is not profitable to pay back larger installments.
Mortgage, contrary to appearances, is not bad. It is worth considering shorter repayment terms – unfortunately at the expense of a higher monthly installment. After all, the cost of such a loan taken for 20 years will be less than 30. The goals for which money from such a loan is spent may be bad. It is a mistake to spend them for consumption – when they are transferred to daily expenses, because savings are managed in an improper and light hand. Therefore, the conclusion is that the money obtained from the mortgage is spent on a specific need, e.g. home renovation, and the rest is put on a well-interest-bearing savings account.
New changes, higher margins
Already during the work on the new act on banking tax, many banks introduced changes in their price lists regarding mortgage loans. The authors of the new tax emphasized that its introduction cannot be the basis for the introduction of increased fees for banking services. Despite this, the banks’ decision was different, contrary to the assumptions of the tax authors. It influenced the amount of monthly installments noticeably. However, it is worth thinking about taking out such a loan, especially when you are thinking about buying a new apartment.