Unfortunately, it is becoming increasingly difficult to get a mortgage for buying a property or building a house. Banks require their own contribution of up to several dozen percents. Who is the mortgage today – a loan fulfilling dreams of owning a flat?
Times when banks could give almost everyone a mortgage long ago. Since 2008, when, thanks to the collapse of the Good Credit investment bank, everyone has realized that an investment bubble bursting inflated mainly by too hasty mortgage lending, obtaining a loan for your desired apartment or house is very difficult.
The situation on our domestic credit market
In which loans are denominated in foreign currency were mainly granted, mainly the Swiss franc and the euro, regardless of the currency risk inherent in it, made many Poles feel the monthly repayment of loan installments, which increased with the increase in the exchange rate of foreign currency.
When we combine these factors with rising wages and a very uncertain situation on the labor market, where companies slow down rather than hiring new employees, we will understand why banks look more closely at anyone willing to take a mortgage. Today, there is no reason that any bank will want to lend us an amount greater than the value of the property.
Loans for 110 or even 120% of the collateral value, quite popular just a few years ago, are now unavailable. Also, a loan for 100% of the value of a flat or house is no longer available today. All this means that now there are two major obstacles for borrowers on the road to getting a loan.
First of these is excessive requirements regarding the amount of income
In most cases, the bank will not grant us a loan whose monthly installment would exceed 50% of our monthly earnings. In addition, our creditworthiness can be calculated for a maximum period of 25 years, and it is irrelevant here that we borrow money for a much longer period (e.g. 30-35 years).
Secondly, to obtain a loan for the purchase of real estate we should have our own contribution, a minimum of 10% of the purchase value, sometimes even 50%. As a result, when planning to buy, for example, a flat worth USD 300,000, we must have tens of thousands of USD of own contribution, which for many young people is an insurmountable difficulty.
That is why today a mortgage is a boon reserved only for the few who earn enough or have the necessary equity. It remains to be hoped that in the future the situation will improve and the availability of mortgage loans will increase so that not only the most affluent customers can afford them.