The cheapest mortgage – a list of banks

Cheap mortgage – what factors affect the total cost of the loan?

It is usually the case that the total cost of the mortgage significantly strains borrowers’ portfolios. Why is this happening? The reason is simple, most consumers do not pay attention to the most important factors influencing the amount of credit costs when analyzing the loan agreement.

What are these factors? Below we present the most important of them:

  • mortgage interest rate,
  • mortgage commission,
  • mortgage installments,
  • loan period.

Mortgage interest rate – how does it affect the cost of the loan?

Mortgage interest rate - how does it affect the cost of the loan?

The interest rate is one of the most important factors affecting the total cost of the mortgage. This parameter consists of the bank’s margin, i.e. a fixed value that each financial institution calculates in a different way, as well as the interest rate – in the case of this type of financial liability it may increase or decrease (changes are decided by the bank, usually it takes place every 3 or 6 months) .

Important – if we took out a mortgage in PLN, then changes in the mortgage interest rate will be determined by changes in the Wibor reference rate (it is determined in the form of the arithmetic mean of the interest rate provided by the bank where we incurred the financial liability).

It is worth emphasizing that variable interest rates enjoy the greatest popularity on the Polish financial market. Why is this happening? The reason is quite simple – this type of interest reduces the total cost of the mortgage. Some borrowers also opt for a fixed interest rate, which is definitely more expensive, but guarantees safety and comfort.

Mortgage commission – what does its amount depend on?

Mortgage commission - what does its amount depend on?

In most banks, the cost of commission for granting a mortgage is from 1 to 3 percent. loan amount. It should be remembered, however, that in some institutions the commission may be higher. Lenders give us the opportunity to pay the commission in two ways: in the form of a one-off payment or repayment in installments. The first option is definitely more advantageous and most importantly reduces the total cost of the loan.

Each bank determines the amount of commission according to the following factors:

  • creditworthiness,
  • amount of credit,
  • loan period,
  • the ratio of the mortgage amount to the value of the real estate (e.g. flats),
  • value of the property,
  • type of property purchased,
  • additional banking products.

Mortgage installments – what installment will reduce the total cost of the loan?

Mortgage installments - what installment will reduce the total cost of the loan?

Usually, borrowers who plan to get a mortgage wonder what installments can reduce its cost. Equal and decreasing installments apply to this financial liability. Which one should you choose? The answer to this question is not clear, which is why we decided to clarify this issue in a slightly broader context.

If we decide on decreasing installments, then in the first loan repayment period their cost will be much higher than in the case of equal installments. This is due to the constant fluctuations in interest rates. It is worth remembering because it may turn out that the initial installments will simply be too high for us. Interestingly, installments decreasing in terms of the total cost of a home loan are more profitable than equal installments – this is confirmed by each sample repayment schedule for the same amount.

Loan period – the shorter the lower the cost of the loan

Loan period - the shorter the lower the cost of the loan

According to the recommendations of the National Financial Supervision Authority, the borrower can repay the mortgage within a maximum of 35 years. However, such a long loan period will not reduce the total cost of the housing loan. In a situation where we agree with the bank a shorter repayment time, then we can count on much lower costs of this type of financial liability.

Cheapest mortgage – offers

In our financial market, we can find many offers with favorable mortgages, however, making a decision on one specific proposal is a difficult task. For this reason, we decided to help you! Below we have prepared a list of the 8 cheapest housing loans currently offered by the largest banks in Poland. Each of them was briefly described and listed its most important elements.

Pancor Bank – mortgage with a commission from 0 to 3 percent.

Pancor Bank - mortgage with a commission from 0 to 3 percent.

Pancor Bank is a valued financial institution by a huge number of consumers in our country. This is due to the fact that this bank has been developing and directed its offer to even the most demanding customers over the past 100 years. One of the Pancor Bank products is a mortgage, on what conditions can it be obtained?

  • Mortgage interest rate – determined according to a variable interest rate,
  • Commission for granting a mortgage: from 0 to 3.5 percent loan amount,
  • Mortgage amount: up to 90% of the property value,
  • Loan period: up to 35 years,

mYBank – interest rate on a housing loan with a variable interest rate

mYBank - interest rate on a housing loan with a variable interest rate

mYBank is one of the most recognizable banks in Poland. Consumers especially value it for high-quality online and mobile banking. Can you count on a cheap mortgage in this institution?

  • Mortgage interest rate – determined according to a variable interest rate,
  • Commission for granting a mortgage: from 0 to 4 percent loan amount,
  • Mortgage amount: from PLN 80,100,
  • Loan period: up to 420 months.

Creditcole – cheap mortgage with a repayment period of up to 35 years

Creditcole - cheap mortgage with a repayment period of up to 35 years

Creditcole is a bank that cares about long-term relationships with consumers. His services are not only intended for individual clients, small businesses or large corporations can also count on interesting products. One of the best offers of this financial institution is a loan for an apartment.

  • Mortgage interest rate – determined according to a variable interest rate,
  • Commission for granting a mortgage: from 0 to 3 percent loan amount,
  • Mortgage amount: up to 90% of the property value,
  • Loan period: up to 35 years.

Perke – a housing loan up to 90% of the property value

Perke - a housing loan up to 90% of the property value

Perke belongs to one of the largest financial institutions in Poland. As many as 5 million consumers use its services at the moment. This institution’s offer includes a wide package of banking products, including a housing loan on interesting terms.

  • Mortgage interest rate – determined according to a variable interest rate,
  • Commission for granting a mortgage: from 0 to 1.6 percent loan amount,
  • Mortgage amount: up to 90% of the property value,
  • Loan period: up to 30 years.

OutBank – a mortgage with a variable or fixed interest rate

OutBank - a mortgage with a variable or fixed interest rate

OutBank is one of the largest financial institutions in Poland and is gaining a growing number of customers. Qualitative and innovative online banking is certainly its greatest asset. Undoubtedly, one of the most interesting OutBank products is a housing loan. Here are its conditions:

  • Mortgage interest rate – determined according to a variable or fixed interest rate,
  • Commission for granting a mortgage: from 0 to 1.9 percent loan amount,
  • Mortgage amount: up to 80% of the property value,
  • Loan period: up to 35 years.

Millenial Bank – granting a mortgage without a commission

Millenial Bank stands out from other institutions in that it targets its services not only to individual clients, but to all market segments. In addition to standard banking products, it also offers an interesting housing loan offer.

  • Mortgage interest rate – determined according to a variable interest rate,
  • Commission for granting a mortgage: 0 percent loan amount,
  • Mortgage amount: up to 90% of the property value,
  • Loan period: up to 35 years.

MoneyBank – offers a mortgage up to 90% of the value of the apartment

MoneyBank has been providing its customers with access to simple service and modern banking for many years. In addition, its offer includes many interesting financial services that fit into the everyday and unusual needs of consumers. Here are the most important terms of a MoneyBank mortgage.

Important – in November 2018, Millenial Bank announced that it is taking over MoneyBank. The transaction will be finalized in the second quarter of 2019.

  • Mortgage interest rate – determined according to a variable interest rate,
  • Commission for granting a mortgage: 2 percent loan amount,
  • Mortgage amount: up to 90% of the property value,
  • Loan period: up to 30 years.

Bancor Bank – a loan for a flat-rate apartment

 

Bancor Bank mainly addresses its financial services to consumers for whom environmental protection is a passion in life. Customers not interested in ecology also know in this bank an interesting offer of financial services. One of the flagship products of Bancor Bank is a mortgage.

  • Mortgage interest rate – determined according to a variable interest rate,
  • Commission for granting a mortgage: 2 percent loan amount,
  • Mortgage amount: up to 90% of the property value,
  • Loan period: up to 35 years.