Mortgage – loan installments

A mortgage is a type of loan that makes it possible to make your dreams of your own property come true. How to get a mortgage? What are the bank requirements? How to pay back the debt?

The mortgage is a long-term debt secured by the so-called mortgage. You can charge this mortgage:

  • property ownership right,
  • right to perpetual usufruct,
  • cooperative right to premises,
  • right to a single-family home.

How to get a mortgage?

How to get a mortgage?

This type of debt can only be obtained by a specific group of society. To obtain money for your own home, you must meet many requirements set by the bank. The most common are:

  • having funds for own contribution,
  • high enough creditworthiness,
  • having the necessary documents to be attached to the application,
  • positive credit history,
  • establishing a mortgage,
  • e.t.c.

When applying, read the bank’s rules and the debt repayment requirements thoroughly.
Installments can be divided in many ways, and they can be repaid in several ways.

Fixed or decreasing installment?

Fixed or decreasing installment?

Banks give you the opportunity to repay your loan in several ways. The most popular method is repayment in fixed installments.

How does the fixed installment work?

Each of the agreed installments is the same, and the entire loan is divided into several dozen equal amounts. The initial repayment amounts are lower than the first installments in the decreasing system, which is often the decisive reason for taking this type of loan.
Thanks to such repayments, it is also possible to keep the rate unchanging, thanks to keeping the interest rate constant.

Decreasing installment.

Decreasing installment.

The second solution is to take payments in a decreasing system. In general, it is a cheaper method. To be able to pay off such debts, you must have high creditworthiness. When paying off debt, the initial installments are much higher than those to be paid at the end of the commitment.

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