I am wondering if applying for kredyt hipoteczny, will the bank know if i am paying Alimony for the kids? and around how much you must be earning to get at least 500,000 PLN?
around how much you must be earning to get at least 500,000 PLN?
Depends on how many years you want the credit for(very flexible).Banks prefer 15 to 30 year mortgages though.Usually the banks look at the mortgage amount to be 25% of the net income and also depends on the credit history.In Poland banks use BIK,you can also get your credit report at BIK.pl,for a fee.
Tip:Never tell the bank that you will pay off the mortgage early or in Poland they hit you with prepayment penalties as high as 10% even on residential properties,also check there closing costs which can be as high as 2 1/2 % and you can negotiate both.
Never tell the bank that you will pay off the mortgage early or in Poland they hit you with prepayment penalties as high as 10%
Only on fixed rate mortgages and it seems to be more like 3% and frequently zero.I checked a few sources to find this information so perhaps things have changed since your last experience of mortgages.
around how much you must be earning to get at least 500,000 PLN?
As Cargo says it depends on how many years you want to take the mortgage for. As well as how much you earn, the bank will consider what kind of employment contract you have and how long you've been employed there and also how old you are. If you're nearer 40 than 30, you have fewer years left to pay off a debt so you'll get less favourable terms. Make an appointment with a few banks to see what their offers are. It's quite straightforward and quick. You'll know within a few days what you can theoretically borrow.
Yes some things have changed since I checked last time.I did like that Mbank will charge only 2% as prepayment penalties only if paid in full,Years back I was in same situation like that here in the States.I slowly paid off the whole amount leaving 5000$ to be paid at the end,and paid it off the other month with 2% or 100$ penalty.I wonder if Mbank has that clarified how much amount is eligible for penalty
Banks do goof up,I have 2 credit lines for 100k each(Heloc) with interest only and no expiry date,they offered me 4k on each line to close,but I refused.So its now like using 200k with current rate of roughly 2.5% here till I die or sell those properties.
Fixed rate mortgages are not for long time,as I could find was maximum of 4/5 years but with higher rate @OP.I would also use a broker and get them bring you rates from the other banks,sometimes they can be better too and they do all the paperwork.There commission can be from .5% to 3.5% and are very negotiable but worth it to check anyway.As you said that you and your spouse will both take the loan so both of yours credit history,employment,savings etc will be required.10% down will certainly not get you a good deal as most banks start getting flexible with 20% or above.
Here in States we had no income verification loans if you put down 25/30%,but all changed after the crisis.Somebody mentioned that there is something like that still but with 40/45% down.Quick search here I found this:
I have been to several banks, i was in PKO and told the lady about my salary and paying 1500 child support, she put everything on their simulator, and said they cant offer me the 500,000 that i wanted, they can offer me 350,000.
Then i went to Mbank, they said they can offer me 571,000 meaning 400,000 for the loan and 171,000 is loan fees, I went to Alior bank today even though many people said dont use Alior, they said they can offer me 310,000 but with partner, we can get 550,000.
if anyone can suggest other bank for me, that will be great, i will be visiting them all, just to collate their fees and conditions together to decide on which one to take.
@amiga500 I don't know that one, however there's a company called Oppen who have a long history of giving mortgages to people who aren't Polish citizens and/or are in untypical circumstances. I haven't used them myself, however close friends have used them and recommended them.
I am Polish citizen, and relatively good job, after paying child support, i still have about 5000 after tax, i will check out ING offer and hopefully they will be better than the rest.
Still, it's worth having a look at Oppen. Although they were recommended to me by someone who's not Polish and doesn't even speak the language, I'd guess that most of their customers are Poles.
You will be a beneficiary of our wise PiS government, and will have more money in your pocket thanks to the tax cut as part of ground-breaking Polish Deal next year.
I suspect the banks want you to go to loan brokers,as they do have links in the banks.One thing about the Mbank that 171k Pln as a fee in that the interest and closing costs for all the years of the loan or just a plain fee>That is a lot,almost 30% of the principal loan?
I have a feeling something is wrong but do give it a try to a broker and please post the outcome here thx.
Came to give the update from Kredit advisor. He check most of the banks for us and with our financial capabilities, we are able to secure a 500,000 loan from banks, Alior bank have highest Rata przejściowa 2,443,27 zl and also Calkowity Koszt Kredytu 292,982,19zl, we have option in Santander and Mbank to choose from.
Overall, it is better to use credit advisor because, as he said, will be applying to 5 banks from us and if we are ever rejected from any, he will tell us why.
Now the question remain, should we build ourselves or buy developer standard house which of course will not be finished and still will need at least additional 120,000 zl.....we still researching anyway, any suggestion will be highly appreciated.
Thx man,I would also get another brokers feedback with another 5 banks.There are plenty of brokers and banks in Poland to take loan from,just make sure you dont get a broker looking in the same bank.I suspect bank managers/directors get a kick back from brokers and that will upset a broker.Dont sign anything just ask what they can get you first.
should we build ourselves or buy developer standard house
Building yourself economically maybe 5/8 % cheaper and with your liking but the work involved will be like having another full time job,maybe for an year with Polish labor market problems.I built a commercial 7/8 years back and was built in 9 months from a scratch.I dont speak Polish so everything went smoothly as I only came to know the problems when they were already solved,you speak Polish so every problem will bring you a headache.Doing a remont is way easier then building provided you like the way the builder built it.I hate when they dont build a bathroom upstairs or no bathroom is attached to any bedroom,most Polish builder build like that.
Rata przejściowa
Calkowity Koszt Kredytu
Is that a fixed interest rate,which was very rare in Poland with higher interest rate.dont forget from now on mostly interest rate will rise thus costing you more if the interest rate is flexible.Be very careful what they make you sign esp if they give you papers in there office to sign.
Never borrow to the limit of your financial capabilities for several good reasons. One of them was mentioned by Cargo Pants; the fact that interest rates can and do rise.
I remember Black Wednesday where the interest rate rose by a fifth and was expected to rise by a half, all in the course of one day. There were colleagues literally crying at their desks with calculators in their hands because they'd stretched themselves to the max already and could no longer afford their mortgage.
Thanks guys for all this advice, yes you are right @jon357 we shouldn't take mortgage that is at the limit of our finances, that would be like suicide, i believe we will check another broker to see what they offer.
Building yourself economically
We were optioning for Szkieletowy, that probably will be faster to build and less costly compare to normal brick houses. We spoke with few construction companies, most of them said it takes them about 3 to 4 months from start to finish...
Fingers crossed, we still haven't decided yet but will definitely check other brokers to see what they can offer, this is a life time investment and commitment, i hope to do it with at least 1 or 2 mistakes....0 will be preferable :)
Never borrow to the limit of your financial capabilities
His advice just came out right,as I mentioned about interest rates went up in Poland last week by ..5% thus now your mortgage will go up too.The numbers you got are useless.
Oh also when you get to notariusz for seperatiob of assests contract pay extra 20 or so PLN to notaruisz to register it with court or it will not be valid,same with pre nupts(They just convince a judge but make to much effect,but register it with courts,The court is on Al Soledarnosci going to paraga on the left side under the old town.
Fuc/king in USA sleepy joe biden id decerasing the inheritence limit from 11.5 mil to 3.5 mil to pay for them mooselimbs,I think we will have to divorce on papers.Sick govt I tell you.I just made a revocable living trust with pour over will.You too do make a will and register it in Poland.That piece of papoer mean shi/t in court otherwise.
You too do make a will and register it in Poland.That piece of papoer mean shi/t in court otherwise.
yes this part i must do because i have other 3 kids, of course they are entitled to something incase something happen to their pops. I've discussed this with my partner and we both agree it is better to do. so we are good in terms of understanding each other.
Hey Dammest1,how did your mortgage hunting go?/since the rates have gone up?I think they will go up more next year.If you need a good affordable Notariusz PM me she is a wife of my American friend,does great work.
Also dont use the notariuz that your bank provides.
@Cargo pants Hi, sorry i did not update my post since, well, we just signed the contract, now mortgage is crazy with everything going on with the war and and creditworthiness, we finally secure one with ING with the help of credit advisor, we had three option (Bank) almost similar offer with 20% down payment.
I have notariuz from the seller of the house, they both work in the same office, there is nothing relating to notariuz from signing agreement with the bank.
