Can a mortgage loan be taken with a partner or friend?

If you are single and do not have sufficient creditworthiness to take a mortgage for an apartment yourself, do not worry. Today we check with whom you can take a loan to buy real estate. Could it be, for example, a colleague or partner with whom we do not live in a formal relationship?

Mortgage – possible for unrelated people?

Mortgage - possible for unrelated people?

There are no special legal restrictions when it comes to taking out a joint mortgage by unrelated people. What’s more, several people can join the loan agreement. Banks have the tools to support this type of custom solution.

Joint mortgage – what do you gain?

The most important reason why Poles decide on a joint mortgage is the willingness or need to increase their creditworthiness. It is natural for people running a household who most strongly dream about being able to finally change their own.

We have it at Good Finance: Mortgage – find a loan for your dream apartment

A frequent “partner” when signing a mortgage contract by younger clients are parents or another member of the immediate family (eg brother or sister). Not everyone knows that the current law is also prepared for unrelated people to take out a mortgage.

Joint mortgage – for whom?

money

It does not matter whether these people are in an informal relationship (cohabitation), in a partnership, are friends or colleagues from work. From the bank’s point of view, the most important thing is whether they jointly have sufficient creditworthiness to make a long-term commitment, which is a mortgage, and whether they are ready to take joint and many liabilities for its repayment.

A mortgage with parents is very popular in Poland . By taking it with people who have a good credit history, have a stable source of income, young people can count on better credit conditions and – above all – increase their chance of receiving a positive decision. A joint mortgage with parents may be a good option for all young borrowers who are just entering the professional market.

Joint Mortgages – Better Creditworthiness?

cash

As a general rule – if more than one earning person applies for a mortgage, their joint creditworthiness is higher than for each of the potential borrowers separately. Only the advanced age of one of your clients can have a negative impact on your creditworthiness.

If someone decides to take a mortgage together with a person who is over 50 years old, this can result in a shortened maximum repayment time. This, in turn, will translate into a higher monthly installment but lower total loan costs.

Co-borrowers acquire shares in real estate on a joint ownership basis. Importantly, shares do not necessarily have to be equal. Mortgage agreements allow a situation in which liabilities to the bank are spread unevenly among borrowers.

Joint Mortgage and Divorce

Joint Mortgage and Divorce

An important element of the practice of granting a joint mortgage is the joint and several liability clause . This means that each borrower is fully responsible for paying the entire liability. This is of practical importance in situations where one of the borrowers stops paying off their part of the debt.

The remaining borrowers are then jointly and severally liable for repayment of the remaining liability. This is also important in the event of divorce. In general, divorced spouses should continue to pay the loan jointly and severally until the divorce is received and the property is divided by the court. Even if they are already separated and one of them moved out of an apartment bought on credit.

It does not matter to a financial institution that the cohabitants, partners or friends parted. The joint mortgage agreement does not take into account the permanence or intensity of their relationship.

In such a situation, borrowers may request the abolition of joint ownership, which in practice means “disconnecting” the other person from the contract. It is also possible to connect an additional borrower during the term of the contract. The financial institution will have to agree to the annex to the contract.

Calculate your mortgage rate using a calculator

To sum up – Polish law is flexible enough that anyone who has the ability to incur financial obligations could conclude them with other, also unrelated persons. We have tools that allow us to split liabilities and ownership if needed.

For banks when granting a joint mortgage, the most important is the total creditworthiness and readiness to assume joint and several liability by the co-borrowers.

Mortgages in Poland are a very popular solution for own. Most people choose such a loan, instead of bearing the high cost of renting an apartment.

Credit repurchase: how to be accepted?

 

If the reduction proposals of -60% on the monthly payments announced by the banks and the credit organizations are attractive, it should not be forgotten that a repurchase of credit requires an acceptance of the lender, here is how to be accepted.

Getting accepted for a credit buyout

Getting accepted for a credit buyout

It is not easy to get accepted the first time for a loan buy-back request because several stages occur during an online request. The first being the loan buyback simulator, it is a tool that offers an automatic and rapid study of the borrower’s situation. If the latter forgets information or fails to declare one, the feasibility may be called into question and therefore a refusal may be pronounced. For example, forgetting income, incorrect amount of a monthly payment or even adding unrequested charges can lead to a negative simulation.

The second stage is the study by the counselor, the latter affixes a human appreciation and therefore it is possible to discuss with this counselor to try to obtain acceptance of the file. The assessment made of a file is based on the information entered in the credit consolidation simulator, but it goes without saying that it is necessary to have a discussion with the applicant in order to benefit from explanations on specific points. , it is precisely for this reason that financial organizations systematically call the applicant following a financing study filing.

Credit repurchase: advice for acceptance

Credit repurchase: advice for acceptance

First, it is advisable not to focus on a single organization, that is to say that a bank will for example have its own criteria and therefore, it will not be able to go beyond its own criteria , which narrows the range of possibilities. It is therefore advisable to contact other types of organizations, but you must be able to identify them because it is not always obvious. This is why comparators offer simulators allowing you to obtain up to several offers for the repurchase of credits that can come from banks, brokers and credit institutions. The competition between these different establishments allows a quick overview of all the solutions and therefore maximizes the chances of obtaining acceptance.

The second tip is to carry out a credit buyback simulation online, using the full simulator available. The advantage is that the latter has all the necessary information that can be put forward to guarantee a complete study of the borrower’s situation because a partial approach generally leads to non-acceptance of the file. It is therefore necessary to be cunning, and not to hesitate to multiply the steps to benefit from a grouping of its loans.

Debtor’s commandments, or how to get out of the loop of obligations

Our hero is 30 years old, works as a salesman selling advertising space in one of the Polish publishing houses. He is employed on the basis of an employment contract, but a large part of his salary is bonuses and bonuses for implementing sales plans. His earnings twice exceed the national average, thanks to which he receives a monthly salary of 7,000. USD.

High work efficiency makes him forget that his fixed salary is only 2,000. USD net and the remaining amount are bonuses and bonuses. He lives in the capital, in an apartment he inherited from his grandmother. Thanks to high earnings, he managed to collect several thousand savings, which he placed on the bank deposit. He decided that they would be secure if he lost his job.

First credit card …

First credit card ...

The credit adventure begins innocently. First, as a reward for a client internship, the bank grants our hero a credit card with a limit equal to his monthly net income. Without hesitating, the card accepts and immediately finances the purchase of a trip to Majorca.

I am glad that he will not have to pay back the card immediately, and the bank will require that he repay only 5% of the debt every month. He does so too, leaving the repayment for later. He considers that USD 250 of the monthly installment will not affect his monthly budget.

First installment purchases

bank

Returning from vacation, our hero dreams of buying a new TV. He finds a large-screen LCD TV worth 3000 USD, which he buys in installments. The store receives a proposal to spread the purchase over 20 installments, to which interest will be added monthly in the amount of 1% of the value of the purchased equipment. So he believes that it is better not to touch the savings since the store has such an interesting offer.

A month after the first repayment (USD 180), the bank that granted the installment loan sends our hero another credit card, with the limit set at 5,000. USD. With this help, the hero immediately buys a home theater and spends the remaining limit on the card for grocery shopping. He decides to pay them back later.

Car!

Our hero, encouraged by current expenses and dreams realized thanks to them, decides to buy a car. He decides to buy a two-year Opel Astra for 40,000 USD. He considers that the formalities related to taking a car loan are too complicated and his bank provides promotional cash loans.

The monthly installment will be 50 zlotys more, but you will not have to establish a car loan collateral, which will speed up the purchase and will not be an obstacle to any resale of the car. This loan, with an interest rate of 15% per annum, taken for 5 years will cost it USD 1040 every month.

Stairs appear, no bonus is paid

Stairs appear, no bonus is paid

Our hero’s employer is in financial trouble. Due to the fact that our hero is the best salesman in the department, he is not afraid of losing his job. However, it turns out that the bonuses paid out on a monthly basis were determined on a discretionary basis.

By the decision of the board, all bonuses are withheld, and our hero’s monthly income is reduced by USD 1,000. As a result, his income “on-hand” falls from 5 thousand. USD to 4 USD.

The bonus also down

The atmosphere at work sits down. Our hero begins to look for another job, distracted. He still receives bonuses for the result, but it is just USD 1,000. As a result, his monthly net income fell to 3,000. USD. It is enough in installments, but for the first time, our hero realizes that this month he will have to leave the car in the garage, because shopping and rent are still enough, but not for gas.

Looking for another job

Our hero is already getting closer to signing an employment contract in a new company. It is to start in three months, and its income is expected to return to its pre-crisis level, thanks to which it will calmly return to last year’s standard of living. Calls are dragging on so he has not yet given notice. But because he has already “almost” signed a contract in a new company, he will decide to take one more loan.

This is a cash loan, based on a statement, from the bank that financed the purchase of the TV and a second credit card. Both liabilities are repaid by our hero out of textbooks, so the bank grants a new loan. USD goes to the account, and the next monthly installment is USD 130.

Loan for GFI 2020 – is it possible to obtain it?

A mortgage allows you to obtain money from a bank for, among others for the purchase of the residential property. Can such a loan be obtained if the subject of the investment carried out by the borrower is a GFI flat?

It is good to know how banks view such lending purposes and whether investors will be able to take out a cash loan in such a situation.

What are social housing associations (GFI)?

cash

GFIs have been created in Poland for over 20 years. This term refers to residential premises built by social housing associations – in short GFI. S tus tus usually has a municipal company operating on a nonprofit basis.

The construction and management of GFI-type apartments are not aimed at generating profit for these companies. Their primary goal remains to meet the housing needs of the society from the given commune.

The history of GFI begins around the second half of the 90s of the last century. Their creation was made possible by the Act on certain forms of support for housing construction of October 26, 1995.

According to the act and its art. 23 social housing associations can be created in the form of limited liability companies, joint-stock companies or cooperative legal entities.

Characteristic for GFIs is that they operate in the area specified in the contract or their statutes, and their income can not be allocated to partners or their members. The subject of GFI activities is the construction of residential houses and their operation on a lease basis.

Can I take a mortgage for an apartment in GFI?

money

People who do not own residential real estate and cannot afford to buy an apartment due to low income and insufficient creditworthiness, as well as those who cannot afford to rent on market terms, can take advantage of the offer of GFI apartments.

The Act on certain forms of support for housing construction defines the income criterion that must be met by persons applying for a GFI flat. The limit varies depending on:

  • voivodship in which the GFI building is located;
  • household size;
  • the period in which the apartment was built, and whether participation was required.

In order to receive the keys to a GFI apartment, you have to pay considerable costs, including:

  • a deposit of up to one year’s rent,
  • participation, which can reach up to 30 percent apartment prices.

Many Poles interested in living in the GFI premises do not have the funds to finance such an investment. Can I take a mortgage on GFI? Will the mortgage cover the costs of participation and deposit?

Unfortunately, this is not possible because residential premises that were built as part of social housing associations cannot be secured by a mortgage.

All because the customers who buy them are not the legitimate owners of the property, but only tenants of the apartment. A loan for a GFI flat can be taken in a form other than a mortgage.

What credit can be used to participate in GFI?

cash

The fact that you cannot take out a mortgage for participation in GFI does not mean that banks are not willing to finance their clients’ investment. What credit for GFI should be taken to get a chance to live in an apartment built by a social housing association?

Coverage of participation costs in GFI in the amount of up to 30 percent. we can secure real estate values ​​by taking out a cash loan or mortgage. Banks grant cash loans for the implementation of any credit purposes by the customer. So he can spend money from a cash loan to cover the cost of participation.

The disadvantage of cash loans is their low amount and relatively short loan period. However, this loan can be taken from some banks even within 15 minutes of submitting the loan application.

The formalities that a potential borrower must complete are kept to a minimum. On the other hand, the mortgage loan will also cover the costs of participation in GFIs, but at the same time, it can be granted on more preferential terms, even for 30 years, which will reduce the amount of the principal and interest installment.

A mortgage loan may be granted in a fairly high amount, but it requires collateral in the form of a mortgage established on a residential property, which cannot be a GFI premise, but another property.

Credit buy-back periods

The consolidation of credit leads to an extension of the repayment period, this duration is fixed according to the repayment capacity. Verena Tarrant takes stock of the different repayment periods.

Duration of assembly

The first period involved in the repurchase of credit is that linked to the arrangement: it is the period between the client’s request and the release of funds. This period can extend from 15 days (supporting documents provided upon request) to 3 months.

Why such a gap? The longer the borrower takes to provide their documents, the longer the duration. The pre-analysis does not require supporting documents but these documents are imperative for the analysis and the assembly of the file.

Example: the borrower must prepare his documents (1 week) then he must send the documents by courier, it takes 2 to 3 days for receipt (working days), if he forgets a document, this period becomes longer. In certain cases, the analyst in charge of the file is led to request additional documents during the analysis…

Repayment period

loan consolidation

The repayment tenure that is proposed in the new financing plan can vary from 12 months (1 year) to 420 months (35 years), it all depends on the type of credit repurchase and the situation of the client.

Duration (months)

Duration (Year)

Repurchase of mortgage

Purchase of consumer credit

12

1

 

YES

24

2

 

YES

36

3

 

YES

48

4

 

YES

60

5

YES

YES

72

6

YES

YES

84

7

YES

YES

96

8

YES

YES

108

9

YES

YES

120

10

YES

YES

132

11

YES

YES

144

12

YES

YES

156

13

YES

 

168

14

YES

 

180

15

YES

 

192

16

YES

 

204

17

YES

 

216

18

YES

 

228

19

YES

 

240

20

YES

 

252

21

YES

 

264

22

YES

 

276

23

YES

 

288

24

YES

 

300

25

YES

 

312

26

YES

 

324

27

YES

 

336

28

YES

 

348

29

YES

 

360

30

YES

 

372

31

YES

 

384

32

YES

 

396

33

YES

 

408

34

YES

 

420

35

YES

 

Duration of release of funds

loan consolidation

After acceptance of the credit redemption, there is a delay between the agreement and the release of funds. The client must return his loan offer to the bank, which releases the funds for the repayment of credits to former creditors.

The duration between the agreement and the release of funds can range from 2 days to 1 week. Once this stage has passed, the borrower reimburses his new monthly payment according to the schedule.

Cash loan or cash loan?

You will receive a loan and cash loan directly to the bank account of your choice. However, banks have greater requirements for borrowers.

Cash loan – minimum formalities and quick withdrawal of funds

cash

A cash loan is the right financial product if you need cash in the short term. This applies if, for example, the car has failed and there is not enough money to repair it. You can also take out a loan for your dream vacation or a small renovation of the apartment.

Non-bank institutions, in addition to the so-called payday loans, offer loans in installments. The repayment period usually does not exceed 3 years, although sporadically there are proposals with repayment up to 4 years.

The maximum amount you can receive is lower than when you apply for a cash loan. Many offers allow you to borrow USD 15,000, and the best offers do not exceed USD 20,000. The advantage is the limited amount of formalities.

Depending on the loan company, you must be at least 18 or 21 years old. Sometimes it is necessary to provide a scan of an income statement or other document, but in many cases, an income statement is enough.

Convenient cash loans without certificates and without verification in the Credit Information Bureau and the National Debt Register allow people with financial problems to take advantage of the offer.

To get cash loans as proof, simply complete the online application. However, you must meet the abovementioned age requirements and, if applicable, your earnings statement. Money can be paid out within a few minutes of the loan decision.

Cash loan – what is a private cash loan?

money

Not only non-bank institutions grant cash loans, but also individuals. It can be a family member or a stranger.

Private cash loans are contracts between two parties where one of them transfers money to the other and the one undertakes to repay them in accordance with the agreed conditions.

There is a lot of freedom in determining the terms of the contract, and thanks to this, a cash loan without certificates is available not only through non-bank institutions.

An individual may transfer cash to a private individual, but also to a company or organization. The principles of obligations towards private lenders are regulated by the Civil Code.

Cash loan agreement – what should it include?

Cash loan agreement - what should it include?

All cash loans require a contract to be concluded. A standard contract should include:

  • date and place of conclusion of the contract,
  • indication of parties to the contract,
  • indication of the subject of the contract,
  • conditions for repayment of the loan (interest, commissions, and other costs should be specified),
  • signatures of both parties.

Pay attention to the points listed when your choice is a cash loan at your home.

In addition, make sure you estimate the costs related to the arrival of the loan company employee to you, and if the collection of receivables will also take place at your address, check whether this involves additional fees.

In particular, this applies if the company representative did not find you at home when the appointment was arranged or arrived due to late repayment.

When the cash loan agreement is concluded online, which is the case for non-bank institutions, then the acceptance of the terms of the agreement consists, e.g., by clicking the appropriate button displayed on the monitor. For a cash loan without certificates to be not only fast but also trouble-free, pay attention to:

  • interest,
  • real cost
  • commission
  • costs related to late repayment,
  • any additional fees.

Minimal formalities make online cash loans available instantly, but remember not to make hasty decisions and check the terms of the contract. Note the same issues also when you take out a cash loan online.

Cheapest cash loan – ranking

Cheapest cash loan - ranking

If you want to know where to apply for a loan, look at the Sean Cole cash loan ranking.

According to the ranking of 10.10.2018, taking out a loan for USD 1,000 with a repayment period of 1 month is beneficial in many companies because they offer APY 0%, which means that repayment of the liability on time is not associated with any costs – you only pay USD 1,000

Plus loan is a company that offers a repayment period of up to 45 days. Other companies offer a repayment period with no additional costs up to 30 days, including:

If you’re interested in the cheapest cash loan at a different amount, check the Sean Cole cash loan calculator.

Online cash loan – comfort provided by banks

A quick cash loan is not always a satisfactory solution because of its costs and sometimes the insufficient maximum amount that you can apply for.

In such a situation, an online cash loan provided by the bank will be a convenient solution. Currently, banks allow you to apply online, but most of them still require at least one visit to their facility to sign the contract.

However, there are proposals for full online service – among the banks that offer such a solution are e.g. GBank and Good Finance.

To find a cheap cash loan, use the Sean Cole comparison tool. Banks provide more favorable repayment terms than non-bank institutions, so use their offer if you have creditworthiness.

Can I get an unsecured credit buy-back?

 

It is possible for a homeowner to obtain a loan repurchase without mortgage guarantee. Here is the advice from our experts.

Credit repurchase: without mortgage guarantee

Credit repurchase: without mortgage guarantee

 

A loan repurchase makes it possible to reduce its monthly payments, for the borrowers owners, it is very often asked to put the real estate in mortgage for guarantee the repayment of the debts.

The mortgage guarantee is a security for the lender to recover the loan amounts and it is a means for the borrower to benefit from advantageous conditions. Everyone is there. Simply, it is possible to obtain this same type of financing without mortgage guarantee.

Loan buy-back: nature of the loan

Loan buy-back: nature of the loan

 

It is enough to understand the legislation in force. There are two loan buyback operations: real estate and consumer. It is the share of real estate assets to be taken over which determines the nature of the financing:

  • more than 60% of mortgage loans = repurchase of mortgage loan
  • – 60% of mortgage loans = repurchase of consumer loan

For example, an owner has $ 100,000 of mortgage to buy and $ 20,000 of consumer loan to buy. In total this makes a loan repurchase of 120,000 dollars. The real estate share is 83% (100,000 dollars / 120,000 dollars X 100). The financing will be real estate.

Another example: an owner has 30,000 dollars in property loans and 50,000 dollars in consumer loans. In total, there are 80,000 dollars to match. The real estate share is 37.5% so the financing will be for consumption.

Obtaining credit repurchase without taking collateral

Obtaining credit repurchase without taking collateral

 

The mortgage guarantee is systematic when it is a buyout of mortgage but if it is a buyout of consumer loan, it is not automatic. It is possible to ask the lender for financing without taking collateral, a study will necessarily be necessary to determine the feasibility of the project and there is a good chance that the financing will be less attractive.

At this stage, an analysis is essential to obtain a personalized opinion and an estimate of the future monthly payment. It’s free and without obligation. Now is the time to obtain this loan.

Credit repurchase and mortgage quota: explanations

 

The mortgage ratio is one of the criteria studied when applying for a loan with mortgage guarantee, here is what you need to know.

Redemption of credits with mortgage and calculation of quota

Redemption of credits with mortgage and calculation of quota

 

A homeowner who feels they have too heavy monthly payments or who wants to rebalance their budget can use loan consolidation. If the household wishes to have their home loan taken over, the lenders will offer financing with mortgage guarantees.

That is to say, the bank will offer a new credit agreement with a longer duration, a single rate and a reduced monthly payment. For taking collateral, if a mortgage is already in place, the lender will then have it withdrawn and put one on the new loan.

Finally, the borrower can benefit during the operation from an amount allocated to a new project. All this must be the subject of a study including the verification of several criteria including the mortgage share.

The mortgage loan repurchase ratio

The mortgage loan repurchase ratio

 

The quota represents the sum equivalent to the value of the property. That is to say that on a property worth $ 200,000, the share of 100% represents a loan of $ 200,000. A share on this same property of 80% means that the amount loaned will be $ 160,000 (200,000 X 80%), and so on. Thus, the mortgage ratio represents the amount that the lender will be ready to grant.

In a grouping of loans, financial institutions will generally offer a share of 80% on average. That said, this percentage can be revised upwards or downwards depending on the lender and especially depending on the profile of the borrower.

However, the quota is based on the value of the property and the lenders sometimes verify with a real estate expert, either external, or attached directly to the bank. It is therefore essential to provide a property value close to that of the market to avoid any disillusionment during the transaction.

Simulate the repurchase of mortgage loans and know the share

Simulate the repurchase of mortgage loans and know the share

 

The simulator allows you to quickly know if a project is feasible, it is also an opportunity to take the temperature on the amount of the monthly payment as well as the share of the mortgage rate. Several credit institutions offer mortgage financing, so it will be easier to find a tailor-made offer at the best current conditions.