Where can you get your own credit contribution for people working abroad?
The Financial Supervision Authority expects banks to require a specific percentage of own contribution from borrowers. However, the condition for granting loans with income from abroad is a higher own contribution than in the case of income received in USD. This is because the loan for people working abroad is associated with higher costs. Own contribution for these people reaches even 30% and with a short loan period. And the shorter period is unfortunately associated with a higher monthly installment. Unfortunately, the key place is to take a loan, if this place is Poland, then the specificity of the Polish banking system should be taken into account.
If you have a construction plot and are considering building a house, you may be wondering how much down payment you must have. Banks require own contribution in accordance with the recommendations of the Financial Supervision Authority.
It is worth knowing that the plot is also own contribution. Thus, a borrower who does not have a down payment in cash can apply for a mortgage to build a house. However, if the plot is a small value compared to the value of building a house, it may be that the borrower will have to make its own contribution in cash.
How to reduce the amount of your own contribution?
In addition, banks apply own contribution insurance , which in most cases is paid by the borrower. In practice, the borrower, thanks to the insurance of own contribution (as described below) can take out a loan with a 10% own contribution . The missing 10% can insure and then we pay a higher installment for some time. Until we reach the required 20% own contribution.
This means that the insurance increases the margin. Some banks have started to pass this cost on to themselves. It should be remembered that own contribution cannot be credited. It must be capital that was previously accumulated by the borrower. It can also be an apartment that the customer has and is not mortgaged. The property can be designated as an additional collateral and then the property is treated by some banks as own contribution . A housing book can also be your own contribution. Own contribution is engaged in such a way that the customer must deposit it before receiving cash from the loan.
Mortgage is a great stress for many people, it is a very large financial commitment incurred for a long time, as we remind you in many of our articles. Very often, customers’ aspirations are much greater than their actual financial capabilities. Many customers initially compare offers via credit comparison websites. Unfortunately, they are often set on only one parameter and it is not accurate enough for the client to actually know if this is the right offer for him.