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Payday Loans

How is the rate of a payday loan defined?

Need to finance a project that is close to your heart, or even to replenish your bank account?? The payday loan can be quite appropriate in this kind of situation.

As a future borrower, would you like to know everything about this type of credit? It is quite normal! Pioneer in the loan between individuals, Good Credit explains how the rate of a payday loan is calculated and gives you a detailed presentation.

What is a payday loan?

What is a personal loan?

Before even looking into the payday loan rate, it is important to know exactly what this type of credit is for. Payday loans fall into the category of consumer loans. It is an unrestricted loan. The borrower (or debtor) therefore does not have to justify the nature of his project, as would be the case for an assigned loan.

In other words, he can make use of the borrowed amount as he sees fit. This money can be used to finance any type of service or consumer good (health or school fees, marriage, travel, birth purchases, household appliances …). It can also meet a cash flow requirement.

A payday loan can be granted by a bank or a credit institution. As with any loan, the borrower must first prepare a file containing a certain number of supporting documents, in order to finalize his request for credit. The supporting documents commonly required are:

  • A valid identity document (national identity card, passport, residence or resident card);
  • A bank or postal statement of identity;
  • Proof of address (gas, water, electricity or landline bill);
  • Proof of income (last tax notice and, optionally, last certificate of family benefits, or last pension or salary slip).

Note: obligations and responsibilities of lenders strengthened
Since the 2010 Lagarde law on consumer credit reform, all lenders are required to check the borrower’s solvency, and therefore their repayment capacity.

Payday loan rate: how does my bank calculate it?

Personal loan rate: how does my bank calculate it?

The payday loan rate is freely set by each bank or credit institution. However, it cannot, in any case, exceed the rate of wear. The latter is defined by the Fine Bank. It corresponds to the maximum threshold that lenders are allowed to practice when they grant credit. Goal? Protect the borrower from possible abuse. But beware, we are talking here about the APR (annual effective annual rate), and not the nominal interest rate (also called debit rate or bank interest). The nominal rate is only one component of the APR.

The APR is an essential factor in the provision of consumer credit. Expressed as an annual percentage of the amount borrowed, it includes, in its calculation, all of the fees imposed by the bank granting the loan. The APR thus translates the total cost of the credit.

In the case of a payday loan – and more generally, a consumer credit -, the APR includes, in addition to the nominal rate, all or part of the following elements:

  • Application fee ;
  • The fees due or paid to third-party intermediaries involved in any way in the granting of the loan (broker, for example);
  • Account opening fees;
  • Account maintenance fees;
  • The costs of using a means of payment (payment and direct debit transactions);
  • The cost of compulsory guarantees (to deal with the risk of non-payment which would not be covered by insurance);
  • The cost of borrower insurance (optional).

Good to know: some important details on borrower insurance
In order to guarantee the proper repayment of the monthly payments, the lender can oblige the borrower to take out insurance, even if this is optional. Otherwise, he will refuse his file. It is his right. Nevertheless, the borrower can quite choose another insurance than that proposed by the bank or the credit organization granting the loan.

How can I find the most attractive payday loan rate?

How can I find the most attractive personal loan rate?

To find the best payday loan rate, and thus realize your project with more serenity, only one solution: compare! As indicated above, the APR expresses the total and actual amount of the credit, at least, in the case of a fixed-rate loan. It is, therefore, the best point of comparison between the different payday loan offers. Whether it comes from a bank or a credit institution, any loan offer must mention this rate.

The APR is a key indicator. It allows the borrower to instantly measure the competitiveness of a particular bank. Of course, the higher the APR, the higher the total cost of credit. The duration of repayment of the credit also affects the APR: the more monthly payments, the more it will be revised upwards.

Do you know the payday loan rate barometer?

Do you know the personal loan rate barometer?

Before applying for a payday loan, and whatever their project, the borrower has every interest in carrying out preliminary work. This goes, as we have just seen, by comparing the loan offers, but also, and first of all, by consulting the rate barometer. The idea, for the debtor, is to know the rates in force. The objective is twofold. Based on this data, it can both:

  • make a realistic simulation of the payday loan;
  • and more easily skim loan offers.

Even if the rates of the barometers do not have a value of the offer, they allow the borrower to have a rather precise idea of ​​the monthly payments which would be his. On the simulators used, it is up to him to play over the duration of the loan to consider different possibilities.

But we insist on one point: it should be borne in mind that if the amount of monthly payments decreases by lengthening the duration of repayment, the total cost of the loan will be ultimately higher. The reason is simple: the borrowing rate is proportional to the duration of the loan.

What to look for when taking a cash loan?

 

A cash loan is often the only way to obtain additional funds for home renovation, Christmas presents or a holiday trip. That is why many people were relieved to find out about the conditions for receiving a cash loan. Thanks to this, banks will be able to take a more liberal approach to testing our creditworthiness and give us loans more often. Although new assumptions are to be introduced, many banks are already adapting their risk policies to new standards.

Who can get a loan?

Who can get a loan?

When applying for a cash loan, you must first have a positive credit history at the Credit Information Bureau and have a constant income from a source approved by the bank. Employment contracts are most preferred, who will receive a subsidy to open a business? People working abroad can also join the loan, but only if their company has a representative office in Poland or the client settles income tax in the country.

What should you pay attention to?

What should you pay attention to?

When deciding on a loan, it is worth paying attention to the amount of the installment, which should allow for free repayment and not burden the household budget too much. Sometimes, simply comparing installments may not be enough, because they often do not include commissions or the insurance premium. Therefore, a good solution is to compare offers at the total cost or APRC. You should also be aware that banks have a very varied offer regarding cash loans, between which differences may lie in loan amount, acquisition costs, receipt time and repayment period. So it’s worth thinking carefully about what is most important to us when taking a loan.

Time of receipt, repayment period and maximum loan amount

Time of receipt, repayment period and maximum loan amount

If you want to get a loan quickly, it is worth choosing the bank in which this procedure takes the shortest, but usually it takes from one to several days. If the repayment period is a priority for us, the best choice will be the bank that offers the longest possible loan period. Typically, banks grant loans for a maximum of 10 years. Also, the amount that can be obtained depends on the credit parameters of the bank and the creditworthiness of the person applying for a loan. Currently, the minimum loan amount is USD 500, while the maximum amount is up to USD 250,000. with.

Administrative fee for the loan – check what it is!

The loan administration fee is one of the costs of the loan, which is very easy to forget when applying for financial support. This inconspicuous fee is, however, able to increase the cost of liability by up to several hundred USD.

What is the administrative fee? What is the administrative fee charged for? Administrative fee and loan – how does it work? What is the cost of the administrative fee for the loan? Which loan companies charge an administration fee?

Many lenders tempt you with cheap and even free loans. Online loans are very easily available. Often you don’t even have to leave your home to get extra money.

When you suddenly need an injection of cash, you may miss the extra costs associated with the loan. They are written in long contracts, which not everyone is sufficiently familiar with. It’s worth making you realize what such fees are and how to avoid them.

What is the administrative fee?

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Until recently, an administrative fee appeared in the agreements with loan companies. What is this? The administration fee is an additional fee that has been charged for a long time by loan companies. They had the right to do so, as no law regulated the method of calculating fees for granting loans by non-bank companies.

It so happened that this fee significantly increased the total cost of the entire loan. Everything changed when the Anti-usury Act came into force, which significantly reduced the number of costs that can be covered by non-bank loans. Thus, since March 11, 2016, most parabanks have completely abandoned such a fee.

Among the current offers, it happens that an administrative fee is added to installment loans. In this case, it often increases the already high costs, resulting from interest, commission and preparation fee.

What is the administrative fee charged for?

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An administrative fee may be charged for any activity that is necessary to grant a loan. What does it include most often? Lending companies charge it:

  • For preparing the loan agreement,
  • for verifying the submitted application,
  • for checking the customer in the debtors’ databases,
  • for the loan itself.

In fact, the administrative fee is simply the extra cost of the loan, and it can be added to many of the activities that lenders do.

Administrative fee and loan – how does it work?

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In practice, the administrative fee depends on how much loan you decide to make. Therefore, it is not possible to say unequivocally what the administrative fee for the loan is. Each company can describe it a little differently. In the case of loans for small amounts, companies tend to give up on it.

It is charged if you decide to go for larger amounts. You can expect it if you apply for funds from several thousand USD. The administration fee may be charged once and added to the first installment. It can also be spread between all installments.

Thus, it increases the total cost of the loan. It is important that this fee is not returned to the customer. So you should pay attention to whether it has been added to the popular free loan for new customers.

What is the cost of the administrative fee for the loan?

What is the cost of the administrative fee for the loan?

It is not possible to clearly determine what the costs of the administrative fee are, because each company can set them free. They usually start with twenty-five USD. However, they can be much more.

So it’s always worth asking if the offer you’re interested in is subject to an additional administrative fee so that you won’t be disappointed with higher loan installments later.

Which loan companies charge an administration fee?

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In the case of popular payday loans, an administration fee is rarely charged. Some companies also give it up for other loans. Where can you expect her?

Is such a fee justified? It is difficult to assess it clearly. On the one hand, it can be said that the loan company is already earning enough on interest and commission fees. On the other hand, it is a fee for specific activities. However, negotiating its abolition is not easy.

So it’s much better to look for those offers that have no administrative fee. What if the administrative fee was added to your contract contrary to the provisions of the Anti-usury Act? You can file a complaint and also apply for help from the Good Finance.

Medical Finance – a loan company with an offer for doctors

Medical Finance is a loan company specializing in providing online loans to doctors, hospitals and various types of medical facilities. It is also an authorized representative of Siemens Finance – a world leader in the field of financial services.

For many years, she has been cooperating with Suppliers and Manufacturers of medical equipment, and as she claims, the partnership is the most important thing in her contacts. Medical Finance’s offer is certainly unique because it is strictly focused on the medical industry.

They do not lack a variety of packages of financial solutions that are primarily to provide the opportunity to invest in innovative medical equipment, restructuring or infrastructure. All this is mainly due to market knowledge. What exactly does Medical Finance offer? And who exactly can use it?

How to take a loan in Medical Finance?

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To take a loan from Medical Finance, you must complete the relevant application, which is available on the company’s website. In the side menu, you can find a separate application for private offices, medical companies, and hospitals.

Depending on the facility, you must select a specific application and then complete it by completing all fields. Importantly, the whole process is done online. Much depends on the type of financial support that the borrower chooses.

Who can take a loan from Medical Finance?

Who can take a loan from Medical Finance?

The loan in this loan company was created for doctors, hospitals, medical companies, and private offices. Simply put, this is an offer addressed to the broadly understood medical industry. This is undoubtedly a field that needs large amounts for development, often they are necessary almost immediately.

Therefore, it is not always time to submit an application at a bank branch, especially since it involves a tedious procedure and a lot of formalities. A loan in Medical Finance can therefore only people associated with the medical industry. This is demonstrated by, among others the fact that to obtain a loan it is necessary to present a document confirming the right to practice the medical profession.

One thing to keep in mind is that these are investment loans. Funds obtained from them should be allocated, among others for the purchase of specialized equipment, computers, air conditioning, etc. They cannot cover the current liabilities or debts of the company.

Loan costs with Medical Finance

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The total cost of the loan in Medical Finance depends on the loan offer selected. You can choose from several of them, including:

  • Simplified – this is an offer that can be used by private offices and medical companies owned by doctors. In this case, the maximum amount of financing is up to 125,000. USD and the funding period for up to 6 years. Importantly, newly established offices can also apply for a loan. The application is submitted online, however, the contract is signed at the client’s premises.
  • Full – addressed to medical companies owned by persons who do not have the right to practice the profession. The amount of financing is optional, and the financing period also reaches 6 years. However, there are some restrictions on internships on the market – the company must exist for at least 2 years.
  • Medical loan – a civil law agreement, from which the funds should be allocated for expenses related to the purchase of medical devices or equipment for medical facilities. In this case, the funding period is from 12 to 72 months.

Hospitals can benefit, among others from financial leasing or financing of installment sales. Importantly, in each of these cases, there is no need for own payment. Detailed loan costs will be agreed individually with the client.

What does customer verification at Medical Finance look like?

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In most cases, you will need to prepare a medical license and ID to obtain a loan from Medical Finance. It is also necessary to complete the loan application thoroughly. For details, it is best to contact Medical Finance by phone or email.

Therefore, people who are not associated with the medical industry cannot take advantage of the loan offer. Other offers on the market have been created for them.

Loan repayment in Medical Finance

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The repayment of the loan in Medical Finance is usually in installments. Depending on its type, the repayment period can reach 72 months or 6 years.

The customer will receive a dedicated bank account number to which they should make the transfer. All repayment conditions must be agreed directly with the loan company representative.

The loan agreement is signed at the client’s office. This is undoubtedly a great convenience, he can apply online and does not have to bother at the office of the loan company.

At the meeting, he can simultaneously ask questions that bother him and possibly set all the additional details. Due to the fact that Medical Finance ‘s offer is very extensive, a lot depends on the subject of financing as well as the chosen loan and its amount.

A loan in Medical Finance – pros and cons

The loan in Medical Finance is a specific offer that is directed exclusively to the medical industry. Private individuals are therefore not able to use it. Is this good news?

Probably yes, because they still have a wide range of other offers available, and medical institutions immediately know where to direct their steps when they need funds for development that they want to acquire without unnecessary formalities and their own payment.

Therefore, the biggest advantages of a loan in Medical Finance include:

  • high amounts of funding,
  • no need to visit a loan company branch,
  • speed,
  • no down payment required
  • long financing period – up to 6 years.

What are the disadvantages of a loan at Medical Finance? It will be primarily:

  • limited possibilities of obtaining a loan (obligation to present the right to practice),
  • no knowledge of the cost of the loan from the beginning.

Prescription remedial loan for problems?

On the Internet, you can easily find many proposals for debt relief loans. Such offers are intended for persons struggling with repayments of previous commitments (e.g. installment loans, cash loans and “instant loans”). Companies providing debt relief loans are not, however, subject to supervision such as banks and cooperative savings and credit unions.

Non-bank consolidation, i.e. the last resort

Non-bank consolidation, i.e. the last resort

At the beginning it is worth explaining a few issues that cause problems for debtors. They are related to quite specific provisions of national law and ambiguous names of financial offers.

Non-bank lenders (including drainage companies), as well as banks and credit unions must comply with the provisions of the Consumer Credit Act. A person taking out a consumer loan (consumer) is subject to special legal protection. The consumer may withdraw from the contract within the first 14 days without giving a reason. Any financial institution that does not allow withdrawal from the contract or violates other customer rights can be appealed to the Office of Competition and Consumer Protection.

Some debt relief companies, as intermediaries, offer consolidation loans from the offer of banks and credit unions. Due to the bad history of checker, most of the people in remoteness cannot receive money from a bank or cooperative cash register. In this situation, the debt relief company lends its own funds, which can be used to pay off the customer’s debt. Due to the long repayment period, the monthly installments are lower. Extending the repayment period also increases the total costs (including interest). However, for a person who has serious financial problems and is threatened by enforcement, this issue goes to the background.

A mortgage or pledge will significantly reduce the cost of the loan

A mortgage or pledge will significantly reduce the cost of the loan

Most of the drainage companies accept clients who have bad credit history or bailiff seizures. Lending cash to such people involves considerable risk. That is why the total cost of using the appliance is high. Apart from the interest rate on the debt relief loan (maximum 12.00%), you have to take into account the high level of administrative fees and charges. Information on costs should be provided in a special form. This document must be prepared by every institution offering consumer loans. Before signing the contract, you can take the information form with you and read it at home.

Customers with valuable assets (e.g. a plot, a flat, a single-family house or a car) have a much cheaper way of using the water. The item on which the loan security (mortgage or pledge) will be established should not be encumbered with another liability. If there is already one mortgage in the land and mortgage registers of the example apartment, then not every waiver company will agree to borrow money. The same principle applies also to movable pledges (examples: car or motorcycle).

After some time, the debt can be transferred to the bank

After some time, the debt can be transferred to the bank

Due to the high non-bank costs, discharge should be treated as a last resort. Thanks to this solution, they have more time to catch their financial breath. It is worth noting that good debt relief companies carefully check the customer’s credit history and other registers. After such an analysis, you can determine whether there is a chance to quickly delete troublesome entries. People who have successfully “cleared checker” do not have to take advantage of the offer of non-bank loans for a long time. After removing troublesome entries in checker, the debt can be refinanced with the help of a bank or a cooperative savings and credit union. Then the customer applies for a simple consolidation loan.

Borrow 800 Dollars – 800 Dollars mini loan with instant payment to your account!

You can overcome a somewhat larger financial bottleneck by taking out a 800 USD mini loan. Possible reasons for a mini loan over 800 USD can be a late transfer of wages or unexpectedly high bills. We’ll tell you what you should know about mini loans and, of course, how you can take out an 800 USD loan.

Which providers offer a $ 800 mini loan?

Which providers offer a $ 800 mini loan?

Capital Lender, MyCredit Lender and Prida Cash Lender are three major providers of mini loans. With these providers you can quickly and easily take out a loan of 800 USD. Prida Cash Lender is the only provider where even first-time customers can take out an 800 USD loan. For Capital Lender and MyCredit Lender, the maximum amount for first-time customers is 600 and 500 USD, respectively.

Mini loans are characterized by their short term. Loans over 800 USD are granted by Capital Lender and Prida Cash Lender with terms of 60 and 62 days, respectively. With MyCredit Lender you can also choose a term of 90 days. Since 800 USD is a sum that can usually not be recovered within a short time, it would be worth considering taking out such a loan as a normal installment loan from a bank.

Even if you don’t get particularly good terms, keep in mind that you are more likely to be able to repay the loan in several smaller installments. If you can quickly repay the 800 USD, you can usually pay off an installment loan early.

Who can take out an 800 USD loan?

Who can take out an 800 USD loan?

Anyone who has a Cream bank account and has reached the age of majority can generally take out an 800 USD loan. Capital Lender and MyCredit Lender only grant such loans to existing customers residing in Germany and with a minimum income of USD 700 and 500 respectively.

For a mini loan from Prida Cash Lender you need a residence in Europe. Proof of income is not required. All of the providers mentioned do not lend to over-indebted people. However, you do not have to worry if you have a bad score or negative entry at Credit bureau. Depending on their current financial situation, small loans are often granted anyway.

What is an 800 USD loan needed for?

What is an 800 USD loan needed for?

You can use an 800 USD mini loan to cover unexpected costs. Such costs can be high bills, for example the end-of-year billing of your energy supplier. Even a spontaneous car repair can cost 800 USD, which you may not currently have left.

It can also happen that for some reason you don’t get your salary in time. With an 800 USD mini loan you can still pay your rent in good time. However, it should be noted that the total cost of an 800 USD loan can be very high if you need an instant transfer and payment in installments.

There may be a cheaper alternative to bridge a bottleneck. If you explain your situation, your landlord will probably give you a few more days to pay if you are still waiting for your salary. Most utilities also understand when a high year-end bill cannot be paid at once and offer the option of paying in installments.

An installment loan from a bank is also a possible alternative. The minimum loan amount is usually 1,000 USD, which is 200 USD more than the amount you need. It can still be worthwhile to calculate this option, because in the end it all comes down to the total cost of the loan. In addition, the repayment rates are significantly lower than those of a mini loan.

How quickly is an 800 USD loan paid out?

How quickly is an 800 USD loan paid out?

If you don’t need the money right away, you can get your 800 USD loan for free. You then only pay back the loan amount plus the interest. However, the fees for a possibly mandatory installment payment are added. You can get your 800 USD from MyCredit Lender very quickly. MyCredit Lender will transfer the money to your account within three to five days. However, loans of this amount are only granted to existing customers.

It takes a little longer at Capital lender Capital Lender pays the money out within seven working days. However, Capital Lender only grants such loans to existing customers. You have the longest waiting time at Prida Cash Lender. With Prida Cash Lender it can take up to 15 working days before you have the money in your account.

All of the providers mentioned also offer the option of a quick transfer. The money would be in your account on the same day, but at the latest within 24 hours. However, this service is not free of charge. At MyCredit Lender, the express option costs 39 USD. You pay 199 USD for Prida Cash Lender and 99 USD for Capital lender

When do you have to repay an 800 USD loan?

When do you have to repay an 800 USD loan?

You must have paid back your USD 800 loan by the end of the agreed term. With MyCredit Lender you can repay your loan in one installment. You can also agree to repayment in two installments for a fee of USD 49. There is also an option to split the repayment up to six installments. The maximum term is 90 days.

At Capital Lender you get an 800 USD loan only with a 60-day term. The repayment is made automatically in two installments, the two-installment option costs an additional 99 USD. Prida Cash Lender has a term of 62 days. Here, too, the 2-rate option has to be booked, which entails fees of 149 USD.

What is a revolving loan?

 

A revolving loan is associated with the client’s personal account. The credit limit is added to the account balance and automatically renews after each use, with inflows to your personal account.

The concept of a revolving loan

The concept of a revolving loan

A revolving loan is a type of cash loan. It can be said that it is a variation of working capital loans. It is always associated with the borrower’s bank account and perhaps this often identifies him with the debit. Debit and revolving credit remain two separate financial products that, however, have different goals to fulfill.
Another terminology used in the case of a revolving loan is the bank offering it in the form of a revolving credit or credit line. The purpose of such a commitment is to increase the funds available on your account by a certain amount.

The procedure for obtaining a revolving loan

The procedure for obtaining a revolving loan

You can apply for a revolving loan at any bank, but the easiest way to do it is at the institution where the customer already has a personal account. As has already been indicated, a revolving loan is linked to the customer’s invoice. At another bank, you must first open an account to be able to obtain a revolving loan.

This loan will be granted at the customer’s request, if it has a sufficiently high creditworthiness confirmed by relevant documents and has a good credit history at the Credit Information Bureau. Sometimes the client will not attach to the loan application eg a statement of the amount of income received, because the bank will calculate its creditworthiness on the basis of cash flows on its account.

How is a revolving loan used?

How is a revolving loan used?

In practice, granting a revolving loan involves adding a specific credit limit to the client’s personal account balance. Thus, the amount available to the borrower increases.

The use of the revolving loan amount only begins when the account holder has used all his own funds. Interest on the loan is accrued on the amount used until the debt is repaid. The repayment takes place each time a payment is made to a bank account. Then the loan is renewed and the account holder who knows you will be able to use it in the future. When there is a total repayment of the liability, interest is not accrued from the day after it is made.

As a standard, the revolving loan agreement is concluded for 12 months and is automatically extended. As a rule, banks charge an additional fee for the servicing of a revolving loan.

Cheapest mortgage loan – where to look for offers?

A mortgage with a solid guarantee Financial conditions for granting mortgage loans Choosing the cheapest mortgage

Loans allow you to finance any or strictly specified purposes in your loan agreements. These may include the purchase of a residential property or construction or renovation of a house. In such cases, clients most often take out mortgage loans at banks.

In general, they are high-value financial liabilities that have been paid back over decades. For this reason, before signing the proper loan agreement, it is worth spending time so that we can choose the cheapest possible mortgage at the moment. Where should we look for such offers?

A mortgage with a solid guarantee

A mortgage with a solid guarantee

 

A definition of a mortgage can be found in the Act of 23 March 2017 on mortgage loans and on the supervision of mortgage brokers and agents. The legislator has clarified what should be understood as a mortgage contract already in the third article of this Act.

He specified that this is a contract under which, by playing the role of a lender, the bank grants the consumer a loan or a promise to grant a loan with a mortgage or other law related to residential property. Each mortgage is granted for the purpose of financing non-business or farming activities: acquisition or maintenance:

  • ownership rights to a residential building or a dwelling constituting a separate property, including their construction or reconstruction;
  • cooperative ownership right to the premises;
  • ownership rights to land real estate or parts thereof;
  • participation in the joint ownership of a residential building or a dwelling constituting a separate real estate or a share in a real estate.

The mortgage is secured by a mortgage established on a residential property, i.e. limited by the right in rem, subject to entry in the land and mortgage register of a given real estate in favor of the bank.

For this reason, banks are more likely to grant mortgage loans with a lower interest rate than in the case of unsecured cash loans.

Financial conditions for granting mortgage loans

Financial conditions for granting mortgage loans

The most important thing for a potential borrower who is looking for the cheapest possible mortgage offer will be where the cheapest loan can be obtained. Mortgage costs are divided into interest and non-interest costs.

In the first case, we are dealing with interest on the loan, calculated according to the nominal interest rate per annum agreed with the bank. This is the remuneration charged by the bank for granting a mortgage.

Credit interest consists of two parts:

  • interest rate
  • bank margin.

The interest rate is the rate at which banks borrow money on the interbank market. In the case of mortgage loans granted in the Polish currency, the GFIC rate is used at the right time (1M, 3M or 6M, etc.) to calculate the nominal interest rate.

On the other hand, the mentioned bank margin is the bank’s remuneration for the credit granted and its value is subject to negotiations between the lender and the borrower.

Interest expense is only one of the borrower’s costs. You should be aware that a mortgage also has non-interest costs. They include, among others:

  • preparation fee;
  • commission for granting a loan;
  • premiums for compulsory insurance, for example, bridging insurance, low own contribution insurance;
  • other insurance premiums – borrower’s life insurance, real estate insurance, borrower’s insurance against job loss;
  • other fees and commissions.

Choosing the cheapest mortgage

Choosing the cheapest mortgage

A potential borrower who has plans to take out a mortgage can visit banks and look for the best-personalized offer for them. He can also reach for a loan comparison service or use a mortgage calculator, thanks to which he will find out which bank has the best offer for him at a given time.

When comparing loan proposals, we should take into account the total loan costs or the APRC rate – the actual annual mortgage rate, reflecting all the costs that the borrower will have to incur if he decides to take out the loan.