A mortgage is the cheapest loan available on the market. Its purpose is the purchase, renovation or construction of real estate. The interest rate on such a loan ranges from 1.5% in Swiss Francs to 8% in USD. The repayment security for such a loan is for the bank the property for which the loan is granted.
A mortgage loan is granted to the owner of the property for any purpose. It can be considered that it is the cheapest form of consumer credit. This is because the bank’s risk is limited by collateral on the property. The scale of the mortgage interest rate is of course very different, however, it usually fluctuates around 10%. If you compare it with the interest rate on the card, for example – 18% mortgage is much cheaper.
In order to apply for a mortgage, you must own a property whose value will be sufficient collateral for the loan. The bank may refuse to grant a mortgage if the land and mortgage register contains provisions about other liabilities. Therefore, this solution is dedicated to people who do not have mortgages or other loans on the property to be secured.
It is worth knowing that when submitting an application for a mortgage, the same documents as for a mortgage are required. They will be:
- application for a mortgage or mortgage,
- documents confirming the applicant’s identity,
- an excerpt from the land and mortgage register or a certificate from the Housing Cooperative on the right,
- notarial deed or donation agreement being the basis for acquiring the rights to real estate,
- in the case of a free-standing building, a document confirming the foundation of the buildings on the plot is required: Copy of the cadastral map with the buildings or Decision on the occupancy permit or Confirmation of acceptance without reservation of the completion of works,
- in the case of a construction plot, a document confirming the purpose of the area for single-family housing development is required, i.e. information / certification on the purpose in the current spatial development plan or a decision on the development and development conditions confirming the possibility of implementation on a single-family housing plot,
- Certificate of sources and amount of monthly income,
- For persons conducting business activity, an extract from the National Court Register or a certificate of entry in the business register, REGON, NIP, certificate from the Tax Office not being in arrears with taxes or confirmation of payment (account statements or proof of payments) of tax for the last 6 months is required , certificate of non-arrears with ZUS contributions or confirmation of payment (account statements or proof of payments) of contributions for the last 6 months, PIT 36 with PIT-B attachment or, if PKPiR has not yet been submitted with a summary of data for months from 01 January to December 31 last year, (for people paying a lump sum it will be PIT 28