04 lipca 2021

9 really important rules for taking care of your mortgage loan

9 really important rules for taking care of your mortgage loan

 

For many years I have been observing the behavior of people related to a mortgage. The pattern and duplicate behavior are very similar for many people. We start with the main goal of getting a mortgage. Meeting with a credit expert, looking for a property that meets expectations and possibilities, choosing banks, submitting applications, credit decision, a moment of hesitation in the loan agreement (am I sure I am doing well ...?), Signing the agreement, starting the loan. Generally at least a few months with more or less problems. Later, it is time to renovate or finish the property. There are also problems here: a cheerful team of drunks, they lead several orders at the same time, tiles are placed crookedly, the neighbors are flooded downstairs, etc. You cannot avoid it in 100%. This is adult life. Final !!! The main goal behind you - managed to get a mortgage for the desired property. Finally, we move into our new M. What you need to rest now, maybe some vacation, you need something to live in, etc., etc. Unfortunately, this is not, or at least it should not be, the end of taking care of a mortgage. A mortgage is not your friend. You don't live on good terms with him. Several times in my posts, I called him an enemy (sic!). Such a hidden, crouching, which when a specific environment appears, will show the horns. This is the biggest, or at least one of the biggest, obligations in your life that requires constant attention. You probably do not have cash coverage, so you should take care of the mortgage to make repayment easier. In today's post, you will learn what are the 9 rules of proper mortgage care:

  1. what will a good relationship with a credit expert help you in in the future?

  2. does it make sense to keep a loan in one bank until the end of repayment?

  3. how can you control BIK so that it helps in life?

  4. how to handle the bank's requirements for ancillary products ?.

 

 

1. Pay your installments on time

 

I guess there is nothing more obvious, but some people think that they are jokes and this month you can buy cooler pants instead of paying the entire installment. There really are such frivolous people in this world. Yes, anyone can get into trouble, but a mortgage is sacred. Your credit history lasts for many years and even small temporary problems, the so-called the mistakes of youth can rebound with hiccups when you grow serious. It is really easy to get into mortgage problems. It's a little harder to get out of. The problem is that the penalty interest rate is 10% today, and such interest on a loan, for example PLN 300,000, gives an installment of PLN 2,633 / month compared to the installment with a standard interest rate of PLN 1,335 / month. 

 

 

2. Overpay your mortgage

 

A mortgage is the cheapest money on the market. I've heard it many times. The statement itself is of course possible, only that you have to be able to use this fact and be able to do it. Leaving cash on a deposit only makes sense in a few cases. Can you earn more than the interest on the loan, do you need a financial cushion for bad times, are you planning an investment? Otherwise, try to overpay the loan periodically so that you gradually reduce your liabilities and interest. Having a loan is not a success - only full repayment is a real victory over your "enemy".

 

3. Check the current price conditions periodically

 

Just because you have taken out a mortgage does not mean that you have to pay off the loan for 30 years with the same bank. At the time of taking a loan, your pricing conditions are clearly defined. In 5, 10 or 15 years it may turn out that the situation has changed so that it pays off to change the "enemy" :) Various market conditions make a mortgage a continuous sinusoid. Sometimes it is better, sometimes it is worse and it should be used skillfully. ⇒ Refinancing the loan can significantly reduce the cost of the loan. Therefore, check the market from time to time and what you can possibly gain. If you have cooperated with a reasonable broker, please indicate that you are interested in this option. Let him save your data in his database and information that you are interested in contacting him if there is any sensible change proposal.

 

4. Meet the conditions of add-on products

 

It would be beautiful if the loan was only an installment, no commission, at most property insurance. Banks have refined the ability to sell additional products to customers very well. On the one hand, a loan with good parameters, and on the other, additional obligations. At the first glance, of course, there is an account with the requirement of receiving salary. Another idea is a credit card with the obligation to generate adequate turnover. Less common requirements are life, real estate or unemployment insurance. You should know that you most likely MUST use the above products in order to maintain the pricing conditions of the loan. The method of fulfillment, the length of the required period, possible consequences of omission or the possibility of returning to the old conditions are included in the contract. Banks have a very different approach. Some are strict and some more liberal. Even if the penalty was avoided at a given moment, there are known cases where the bank tested the fulfillment of product declarations several years back. Even if someone "waved" a few hundred zlotys of influence, the bank ruthlessly raised the margin until the end of the loan. Such a move on a massive scale was made by DnB Nord - the star bank, which at some point lit up, marked its presence on the market quite significantly and fell into the abyss. Now, when he only deals with the current customer service and does not acquire new ones, he is completely "fired" on the opinion of others and uses the provisions of the signed contracts without hesitation. This bank was the leader in loans granted in EUR. Due to the changes and restrictions in foreign currency loans, customers find themselves trapped, and the bank is diligently taking advantage of this. Unfortunately, you are not sure that your bank will not become such a star and will not start to take advantage of your weaker position.

 

 

5. Maintain a good relationship with your credit expert

 

A credit specialist does not work for nothing for a smile, a kind word, or a flowery thank you. This is an ordinary contract: money for a service. However, small gestures can make you feel positive. Maintain a friendly relationship with an expert. Thanks to this, in any problems with the bank, you can count on help and quick information about what is happening on the loan market. A mortgage expert in 10 years can explain the complexities of credit and related topics to you. I know how it works. Even though I try to be the same for every client, there is no need to hide: there is some more time and will for nice people.

 

6. Life and real estate insurance

 

Many borrowers treat life insurance as an unnecessary additional cost, because they are in no danger. The problem is, anyone who has experienced bad things probably didn't think it would happen to them. Personally, I believe that life insurance is a mandatory product, even if the bank does not require us to do so. These several hundred zlotys during the year are not a big burden in the face of potential problems. With real estate insurance, it is so much easier that the bank requires it, but only in the basic scope. Risks such as flooding, theft, civil liability or damage caused by the tenant are not always included. Borrowers tired of the process of arranging a loan often abandon this topic, because the insurance premium is several hundred zlotys. I am a supporter of buying the policy outside the bank. The greater the choice, the greater the possibility of adapting the scope of insurance to your own needs.

 

Insurance is a rather complicated topic. The whole fun begins at the moment of the claim, when the insurance company begins to search for provisions in the GTC that will protect them from the payment of compensation. Believe me, specialists really work there. Some are those who will do anything to make you buy an insurance policy from them, while others are those who do not pay anything from the compensation. I suggest that you read the terms and conditions carefully.


 

7. Check your BIK periodically

 

At BIK.pl you can buy yourself access to your credit history at an affordable price. It is worth investing in something like this for several reasons. First of all, you can see how the bank reports your history to the credit database on an ongoing basis. There are millions of records in BIK.pl and believe me, mistakes happen. Simply where there is a human factor, there must be a statistically error. Your verification will help to spot any inaccuracies and straighten them. The second cool option is the credit alert. The alert works so that you get a text message when a bank makes a commercial inquiry. So when someone tries to take out a loan for you, you get real-time information. Thanks to this, you are able to counteract it.

 

 

8. Allow data processing after the payment of the liability

 

Mortgage repayment is a serious argument, as long as you have paid the debt on time. It is worth collecting such arguments, as they may be useful to you in the future. As of today, credit history is not as important as some people think, but who knows how it will develop in 5, 10, 15 years. In my opinion, this issue will become very important. Perhaps your future contractor will ask for a report from BIK. Yes, you read that right. If I were to do business with someone, I would ask them for a credit history. Financial credibility is a mega-important issue. People can speak beautifully, but what else they do behind their backs. Therefore, make sure that your mortgage has permission to process data after paying off the loan. Thanks to this, for 5 years after the loan repayment, it will be visible, and will not be transferred to the statistical part invisible to banks.

 

9. Build private savings

 

According to statistics, about 40% have no savings. The mortgage will probably stay with you for a teen or even tens of years. During this period, you may face many “turmoil” such as illness or job loss. In a favorable period, try to build financial security in the form of savings. I know that today's world is attacking us from every side with compulsory consumption, but buying completely unnecessary things will not help at all. Will savings give you a sense of stability and can be useful in crisis situations? How much of these savings do you have? I am of the opinion that each of us should have free funds for min. 6 months of living on an unchanged level without receiving any income during this time.

 

Feel free to comment. Is the topic of credit analysis interesting for you? Let me know in the comment. Will be happy to help clarify all issues. It is important to me that every topic regarding the mortgage is absolutely explained.

 

CONTACT ME >

Mortgage broker

Michal Kaplon

os.Stefana Batorego 80

60-687 Poznan

Strona www stworzona w kreatorze WebWave.