Mortgage Consulting

What do you need to know before taking a mortgage? Who should you consult before taking a mortgage? What are the common mistakes made in the area of mortgages? All of these questions, and more, addressed in the guide we've prepared for you.

Taking a mortgage is usually the major financial move in life. A mortgage, with all it entails, is not just another simple banking transaction rather one made for the long term, affecting the financial conduct of the family for many years to come. Therefore, just as we check, consult and compare when we want to purchase a new car or choose a doctor, we need to do the same when before proceeding to take a mortgage, yet with even greater precision. It is important to check, compare and negotiate before deciding where to take the mortgage, from whom to take it, what size to take and for how many years. Remember: mistakes made due to lack of attention are liable to cost dearly.

Some fundamental rules for taking a mortgage:

The mortgage must be suited to the family's financial ability.

It is important to check the size of the capital at your disposal, and the rate of return you can afford to pay each month. It is not advisable to rely on assumptions regarding the future, such as a raise in salary or an inheritance you anticipate receiving, since these are liable to change over the years, for various reasons. Rely only on definite, secure sums of money. In any case, it is not recommended that the monthly rate of payment exceed one third of a couple's net income.

The mortgage period is of paramount importance.

The shorter the length of the loan, the lower the interest charged. The rule is simple – a short mortgage is cheaper than a long one.

How to determine the monthly payment date?

How should you know what date to make the monthly payment on? When signing a loan contract, the monthly payment date is determined as well. Several dates may be chosen from; it is recommended to set the date in accordance with salary payment date.

Finally, an important tip:

For your convenience, mortgage returns can be made only after receiving the keys to the new apartment. Thus, if you are renting or selling your present apartment, you will not have to pay rent as well as mortgage returns during the interim period.