In 2019, the cost of loan insurance exceeds that of credit

Mortgage insurance exceeds that of credit score

Loan insurance exceeds that of credit

Thanks to the possibility of eliminating your real estate insurance each year, right granted by the Bourquin amendment, the cost of this insurance plan required by the lenders provides slightly decreased. Also, because of competition between bancassurance businesses and independent insurance companies, the particular rates have been reduced. Nevertheless , as rates are still really low, the amount of interest on mortgage loans is generally lower than the amount of the contribution.

Reduce loan insurance rate within 2018, but less than rates of interest

Lower loan insurance rate in 2018, but less than interest rates

Although mortgage rates of interest have come down, and even experienced very small increases at the end of 2018, they remain at a really low level. Thus, according to lenders, the average interest rate is 1 ) 35% for a credit repayable over 15 years, plus 1 . 55% for a mortgage with a term of two decades. For 25-year credits, the typical rate is 1 . 75%.

Professionals within the real estate mortgage insurance marketplace also reduced their costs after the Sapin 2 regulation came into effect, which allows debtors to now replace their own insurance each year, with 8 weeks notice before the date wedding anniversary of subscription of the mortgage agreement.

To be able to gain customers, insurance companies provide advantageous financial conditions plus tailored guarantees. But , aid their customers, banks use significant haircuts. Although this particular downward trend is common, insurance costs more than the mortgage for many borrowers.

Increase in the cost of borrower insurance policy in 2019 due to the embrace taxation

Increase in the cost of borrower insurance in 2019 due to the increase in taxation

If rates of interest are expected to remain stable a minimum of until next summer, the quantity of insurance will increase due to the expansion of the special tax upon insurance agreements (TSCA). ), 9% tax now prolonged to all the guarantees of the loan insurance contract. Actually previously this tax failed to concern the death ensure, which was exempt. It is completed today.

This particular increase in taxation leads to a rise in the cost of insurance. Plus, depending on the profile of the covered, this increase can vary through 2 to 5 pounds per month.

Interest on real estate loans

Interest rates on real estate loans remain at historical lows

Interest rates on real estate loans remain at historical lows

Business News Interest rates on real estate loans are still at historic lows. According to the Association of German Credit Institutions in Berlin, the average interest rate for ten-year fixed-interest loans in 2017 was around 1.4 per cent. The average interest rate currently stands at 1.46 percentage points (as at 6 February).

To illustrate: In 2008, buyers still had to pay an average of 4.6 percentage points interest, in 2013 about 2.7 and more. In individual cases, however, interest rates can vary widely. Notes for borrowers: – Choose a term: Due to the low interest rate level, it is better to set a fixed interest period of at least ten years. If you want to plan particularly sustainable, you can also sign up for a fixed interest period of 15 or even 20 years.

  • Selecting installment payments: A high repayment rate – eg 3 percentage points instead of the usual 1 percentage point repayment – will repay the loan more quickly. This saves considerable costs over the entire useful life. It needs to be tuned beyond that. – Exceptionally good termination right: Irrespective of the agreed duration, real estate loans can be terminated after ten years.

This can be used by borrowers to have a more favorable interest rate for the remainder of the deadline.

Rise in interest rates on real estate loans

Rise in interest rates on real estate loans

Capital market interest rates rose sharply in the last few weeks of trading. In the eurozone, good economic data and somewhat higher inflation led to the expectation that the ECB could reverse the bond purchase program very soon. With fewer purchases from the central bank, the shortage on the bond market would be reduced, thus providing more return. If he implements his election program as planned, the inflation risk in the US will increase significantly.

As a result, the US Federal Reserve would have to raise interest rates more than previously thought. Experience shows that raising US interest rates will not have any impact on the euro area, so that interest rates in Germany should rise as well. For mortgage lending, too, the trend reversal on the bond markets should stimulate interest rates.

Building owners and property buyers should therefore not dwell too long on the still good conditions.

Cash loan ranking – August 2018

August 1, 2018 A cash loan is a serious financial liability. No wonder that customers are looking for the most attractive offers. How to find them The ranking of cash loans will definitely help. All the most important information was collected in one place especially for the convenience of the customer. Which banks were rated best in August?

Outbank, Mobile Sumagi Bank and GTO BP – podium of the cash loans ranking

Outbank, Mobile Sumagi Bank and GTO BP - podium of the cash loans ranking

Good cash loan? Preferably in Outbank, Mobile Sumagi Bank or GTO BP. This is the result of the cash loan ranking for August 2018. Customers indicated the offers of these three institutions as the most advantageous and convenient.
You can take a cash loan at Outbank:

  • for up to 50 thousand zł,
  • for a loan period of up to 72 months.

Outbank came first in because customers appreciate the huge cost minimization proposed by this proven lender. I am talking about the 3×0 PLN offer, which is extremely attractive conditions proposed by Outbank:

  • commission from PLN 0,
  • PLN 0 for early loan repayment,
  • PLN 0 – i.e. no additional costs – for formalities related to the conclusion of the contract.

The APRC (with insurance) of a cash loan at Outbank is 13.75 percent.

High amounts and good conditions at Mobile Sumagi and GTO

Cash loan through Mobile Sumagi Bank you can take:

  • for up to 200 thousand zł,
  • for a loan period of up to 10 years.

The cash loan at Mobile Sumagi Bank has an APRC of 16.93 percent. The offer stands out so. pocket installment, i.e. an installment that does not burden the borrower’s portfolio. The entire credit application process takes place entirely online – and the money can be transferred to the customer’s account the same day. All without leaving home.

You can take a cash loan at GTO BP:

  • for up to 120 thousand zł,
  • for a loan period of up to 96 months.

The “Mini Ratka” cash loan at GTO BO has an APR of 3.46%. The offer is distinguished by the possible withdrawal of cash even on the same day on which the application was submitted and the lack of fees for early repayment of the entire liability.

Salader Consumer Bank and Tiges Bank just behind the first three

Salader Consumer Bank and Tiges Bank just behind the first three

Salader Consumer Bank offers its clients two interesting suggestions: standard cash loan and master cash loan. Regular customers of Salader Consumer Bank can take a loan of up to 50,000 PLN, while new customers up to 35,000 zł. APRC cash loan 21.83 percent In Salader, over 10 million customers have already taken credit. Every fifth loan in Poland is granted by Salader Consumer Bank.

Tiges Bank, in turn, offers a loan of up to PLN 200,000. zł. The commitment can be made for up to 10 years. The installment in agreement with the bank is adjusted to the borrower’s financial capacity. The APRC of a cash loan is 19 percent.

To get a loan at Tiges Bank, all you need is:

  • be at least 18 years old
  • have creditworthiness and credibility.

Cash loan – quick money for large expenses

Cash loan - quick money for large expenses

Installment loan or cash loan? It all depends on your needs. Both products enjoy unflagging popularity. Both installment loans and cash loans can be obtained for really high amounts – those that will help, for example, to buy a flat and allow you not to take a standard mortgage.

To choose the right product, it’s worth not only analyzing your repayment options and the terms of the commitment. A responsible borrower always uses the current cash loan rankings or the current installment loan rankings (if he chooses to loan).

Comparisons should be reviewed even for small amounts – that is, even if someone is thinking only of a quick payday. The payday rankings are created especially for responsible people. For full knowledge – if anyone has never taken payday pay – you should also check what must be found on the website of the payday business. Responsible borrowing – for small and large amounts, it guarantees satisfaction and a positive credit history.

A cash loan is a financial product taken for many months or years. Therefore, the loan can not be too burdening the household budget. That is why it is so important to check the current ranking before making a cash loan decision. This will definitely help you avoid unfavorable offers.

Reverse mortgage versus reverse mortgage

March 28, 2018 On October 23, 2014, the Sejm adopted the Reverse Mortgage Act. Pursuant to the regulations, the borrower in exchange for the transfer of property rights to the bank can count on a lifetime annuity. There is 5 million pensioners in Poland, of which 2.5 million owns real estate. Unfortunately, banks are passive and do not introduce the product. The market does not like a vacuum, which is benefited by mortgage funds offering beneficiaries an inverted mortgage – i.e. retirement for an apartment.

Reverse mortgage – what is it?

Reverse mortgage - what is it?

Reverse mortgage is a relatively fresh banking product. The act regulating the above-mentioned financial product is the Reverse Mortgage Act of October 23, 2014. Under the law, only banks can provide such services. The regulator is the Polish Financial Supervision Authority. The Sejm decided to normalize the market due to the growing interest in the product and supply of mortgage funds, providing the so-called retirement for an apartment.

Reverse mortgage is mainly targeted at older people. However, the Act does not provide for age restrictions for the borrower. Therefore, theoretically, young people can take advantage of the reverse loan offer.

The service consists in the fact that the borrower pledges his property to the bank. In return, he receives money – in a one-off payment or in installments. Most importantly, the beneficiary may live in a secured house or flat throughout the entire loan period. After the borrower’s death, the deceased’s family has the right to pay the debt and take over the property. If the heirs do not settle their debts within 12 months, then the bank has full rights to the secured property.

Important – if the family does not decide to pay back the loan, the bank is obliged to refund the difference between the real value of the property and the outstanding amount due to the reverse mortgage.

Reverse mortgage – the amount of benefit

Reverse mortgage - the amount of benefit

Reverse mortgage is a popular product in Western Europe. The solution is most popular in Great Britain. It is estimated that the value of reverse mortgage contracts in the Islands is almost EUR 2 billion. The customer usually receives 30-40 percent from English banks. secured property.

If a Polish bank would make similar assumptions, then with a property value of 250,000. The beneficiary would receive PLN 400-600 per month. Naturally, as the value of the property increases, the amount of benefit paid would increase.

In a situation where a reverse mortgage offer would be used by a marriage, at the time of the death of one of the borrowers, the other receives installments after the deceased. But – only in proportion to the property inherited from the dead. For example – the husband inherits the inheritance along with his son from the deceased wife. Then the property should be divided between the father and son. As a result, both will get half of the succession. Ultimately, the husband will have 3/4 of the property and will receive the same amount from the bank. To sum up – initially the installment for spouses was 2,000. zł. After inheritance formalities, the living borrower will receive PLN 1,500.

Reverse mortgage agreement

Reverse mortgage agreement

Pursuant to the Act, anyone interested in a reverse mortgage should first receive an information form from the bank. The form should contain:

  1. loan amount,
  2. date and method of payment,
  3. credit costs,
  4. method of payment of costs,
  5. rights and obligations arising from the contract.

The Act precisely defines what the contract should contain. Importantly, if after signing the documents, the borrower finds that he does not want to use the service, he has the right to resign from the reverse mortgage without incurring costs.

Reverse mortgage – banks offer

Reverse mortgage - banks offer

Immediately after the introduction of the reverse mortgage law, four banks wanted to include the above product in their offer:

  • PKO BP,
  • ING Bank,
  • Bank Zachodni WBK,
  • BPS Bank.

Unfortunately, no bank has decided to introduce the product to its offer. Reason? Banks are afraid of a reverse mortgage. First of all – it is not known how long the potential borrower will live, and secondly what value the flat will have after the death of the recipient. Banks also do not want to introduce the service to the market due to the high costs of product launch and monitoring. Interest rate would be the bank’s only income, similarly to mortgages and loans.

Pension for an apartment in mortgage funds as a supplement to the pension

Pension for an apartment in mortgage funds as a supplement to the pension

Pension for an apartment is not a product within the meaning of the Reverse Mortgage Act and is not subject to banking law. Therefore, companies that offer annuities are not controlled by the PFSA. Mortgage funds operate on the basis of the provisions of the Civil Code – art. 903-907 and art. 908-916.

The main difference between the mortgage and banking offer is that the recipient ceases to be the owner of the property at the time the contract is signed. In return, the financing entity allows the beneficiary to use the property for life. Moreover, the mortgage fund is obliged to pay the amount specified in the contract – once or in monthly installments. The benefit ends with the death of the seller of the property.

The amount of pension for an apartment depends on the value of the property. According to reports from the DOM Mortgage Fund, the annuity in most cases does not exceed PLN 1,000. Considering the average amount of old-age pension in Poland – PLN 1780 net, a reverse mortgage may be a good addition for a pensioner.

Mortgage rent – threats

Mortgage rent - threats

Lifetime annuities are not regulated by the state. Among other things, because of this, there is a risk of losing the right to live in a sold property. The most dangerous for the beneficiary are situations when:

  1. bailiff proceedings are pending against the owner of the property (mortgage fund), which may result in a change of ownership of the property. As a result, the entity responsible for paying out the mortgage will stop paying the benefit;
  2. the company that owns the apartment will go bankrupt.

Reverse mortgage and pension for an apartment – summary

Reverse mortgage and pension for an apartment - summary

Both the reverse mortgage and the reverse mortgage offered by mortgage funds have many advantages. First of all – the low creditworthiness of pensioners, limits their access to cash loans and loans online. The product opens a door for them to liquidate capital in the form of real estate. Secondly – it’s just a nice supplement to your pension.
However, the main downside is the fact that Polish banks do not offer an inverted mortgage. Therefore, seniors are forced to use the services of mortgage funds. Unfortunately, the funds are not regulated by the PFSA, which means that there is a significant risk of their insolvency.

Ranking of payday loans – January 2018

 

 

January 1, 2018 January is a period of increased spending. During this time, many people decide to implement the New Year’s, often costly decisions. Some also want to improve their home budget after December holiday shopping. However, when our wallet is empty, it is worth taking a quick loan. Ranking of payday loans will help you find the best offer. Check who was on the podium this month.

Legowatas is still the leader

Legowatas is still the leader

Legowatas once again leaves the competition behind and ranks first in the online payday loans ranking. A non-bank institution allows the customer to take out a loan without presenting any statements, and in the event of problems with repayment, the customer can refinance the commitment. It was these qualities that distinguished the institution and allowed it to stand on the podium.

At Legowatas you can apply for high amounts of loans from 500 to even 5000 PLN. However, it should be borne in mind that the maximum amount of liability is only available with the fifth loan. Interestingly, new customers can apply for the first free loan up to PLN 2,000. Thanks to this promotion, the commitment will not have a significant impact on your home budget. The repayment period is 7, 14, 21 or 30 days.

Cashmen and Netloan once again on the podium

Cashmen and Netloan once again on the podium

Cashmen and Netloan were once again on the podium, taking 2nd and 3rd place respectively. This should not surprise us, however, companies have been operating on the online loans market for many years and have an unblemished reputation of customers.

Cashmen’s offer includes payday loans in the amount of PLN 100-2,000. The repayment period can be up to 61 days, which definitely distinguishes the company from other non-bank institutions. What’s more, new customers can enjoy the first free loan up to PLN 1,500. Cashmen also appreciates regular borrowers and provides a bonus program. Loyal customers can take advantage of attractive discounts and rebates.

The offer of the Netloan brand is also noteworthy. We can find loans up to PLN 5,000. However, it should be remembered that this amount is only available for the next loan. Netloan has also launched an interesting promotion for new customers. People who have never used the services of an institution before can apply for the first free loan up to PLN 3,000. Such a high amount of free payday gives Netloan a significant advantage over other loan companies.

Loan companies offering high amounts of payday loans online

Loan companies offering high amounts of payday loans online

If, first of all, we care about the high amount of payday loans, we should take a closer look at the offer of such non-banking institutions.

Particularly noteworthy, however, where customers can apply for up to PLN 7,500. Such a high amount of liability is rare in the offers of institutions offering short-term loans. It should be remembered, however, that this amount can only be claimed after six loans repaid. The repayment period, however, ranges from 7 to 35 days.

Wandoo has also prepared an interesting offer. Customers can apply for between PLN 300 and 5000. The repayment period is normally 30 days. What is worth emphasizing, the institution also gives the possibility to refinance payday loans. In this way, you can postpone the deadline for repayment by 14 or 30 days. The refinancing fee depends on the amount of debt and the extension date chosen.

When looking for high amounts of short-term commitment, we should also consider jhe offer. Customers can apply for up to PLN 5,000. Importantly, the company’s regular customers can extend the repayment period up to 65 days.

When payday loan and when installment loan?

When payday loan and when installment loan?

Payday loans are a great solution, above all, for people who want to borrow a small amount and prefer to pay off their liabilities in one installment. However, if we have more expenses planned, it is worth considering an installment loan. What’s more, such a commitment is spread over convenient installments, so it won’t have a significant impact on your home budget. The installment loan ranking will help you choose the best offer!

“January is the period in which we begin to implement our New Year’s resolutions. Such activities, however, involve considerable costs. Buying a gym membership or refreshing your wardrobe is usually a big expense. If the implementation of the plans exceeds our financial capabilities, it is worth considering a quick loan online. The monthly payday loans ranking will help you choose the best offer. “