Mortgage processing often resembles the fight with windmills. If you have enough of Don Quixote’s endless battle with the bank, try an alternative in the form of a targeted housing loan. It will be great for you if you need a few hundred thousand sums.
The advantage of housing loans over mortgages lies in their simplicity. To obtain a loan, you only need to prove your identity and have a steady income. This is a total nerve balm compared to an administrative marathon when arranging a mortgage. In addition, there is no concern with property liability. The problem may be the limiting amount of the loan, which does not exceed one million crowns. Some companies even allow the use of part of the money inefficiently, for example, you can spend up to 20% of your loan on senku without asking.
The purpose loan is cheaper
The question of why take a special-purpose loan is creeping. The answer is simple. From the point of view of banks, these are less risky loans, so they have lower interest rates, so they come out cheaper than conventional loans. Sometimes even a few percent. However, the housing loan is not provided by all banks. In vain, for example, in Zenku or MayeBank and many others.
What can I pay with a loan?
The purpose of the loan is strictly limited. The money can be used for reconstruction, purchase of new kitchen cabinets, built-in wardrobes, purchase of cooperative share, purchase of a garage, new swimming pool, purchase of household equipment, or purchase or construction of real estate. However, it always depends on the conditions of the particular institution. For Commercial bank, the investment in equipment must not exceed 50% of the total loan, Era goes further. It does not allow the purchase of computer equipment or black electronics.
Popular purpose loans are those that allow you to dispose of money on the day of signing the contract. Invoices and other documents are delivered back to the bank.
Examples of housing loans
- Senku Loan for Better Housing starts at CZK 100,000. The maximum amount is not limited, but over 600 000 CZK you have to guarantee real estate. Payments can be spread from one year to twelve years. The Bank provides an interesting interest rate from 7.9%.
- Raiffeisen Bank lends up to one million for housing without paying management fees and negotiating a loan. Funding can be extended up to 6 months from signing the contract.
- With us, installments can be extended to 10 years. The bank lends from CZK 100,000. The drawdown of the loan takes place either once or the bank sends the money directly to the sellers.