Pursuant to the law, before granting a mortgage, the bank is required to provide detailed information on all costs related to the possibility of crediting. From October 22, 2017, each offer must have the APRC (Actual Annual Interest Rate).
When considering choosing the right mortgage, you should check the various offers in the given loan calculator or comparison engine and carefully read the terms of the loan.
It should be remembered that the mortgage calculator only offers simulation, and the actual conditions are those that apply under the contract signed with the bank.
Student mortgage – can the student have a loan?
Making a decision about choosing a mortgage is often one of the most important decisions in the whole life and at the same time a decision whose consequences – depending on the loan period – will affect the applicant for the next ten, twenty or even thirty years (nowadays banks do not give mortgage loans for longer period).
A mortgage can be granted to any adult person, and it is decided in the verification process whether it will be granted. During the process, the financial situation of the applicant, e.g. student, and above all his or her creditworthiness is analyzed.
Many factors affect creditworthiness. Debt is a very negative factor. At the outset, this situation may disqualify you from obtaining a loan for an apartment. Income, their amount, but also income history and stability are extremely important – the bank appreciates the lack of longer breaks in receiving remuneration. What counts is the length of employment and its form, which especially in the case of young people with less professional experience, devoting a lot of time to students, seems crucial.
If a student has been studying and working for a long time, he has the best chance of getting a mortgage. However, you cannot delude yourself that your creditworthiness will be high enough to be able to borrow five hundred thousand zlotys – it may be so, but it is rare. For students who are most often employed under civil law contracts (mandate contract, contract for specific work), it is not easy to develop high financial capacity.
How to increase your credit standing?
Regardless of whether you are a student or a person who does not work under a contract of employment, in any case, increasing your creditworthiness is very important. In addition to increasing your income and trying to change the type of contract, it is worth using the help of your loved ones, which can be invaluable.
If one of the family members or another close person, friend, friend agrees to guarantee the applicant’s loan with their own property or to secure it with their own real estate (or a more expensive movable property, e.g. a valuable car), then the creditworthiness becomes much greater. Thanks to this method, the student starting his career with his own hard work and help of the family can live “on his own”.
Mortgage application – amendment of regulations
On July 22, 2017, a new Act on Mortgage Credit and Supervision of Mortgage Brokers entered into force. Her changes are good information for people who want to apply for a loan. The changes concern, among others obligations of banks to shorten the period of issuing decisions on granting or not granting credit to 21 days from submitting the application.
Moreover, if the bank has refused credit, it is required to provide detailed information on the reasons for such a decision . They will certainly help many applicants, including students who submit such an application for the first time.