Mortgage Loan – conditions for granting and repayment

A mortgage loan at Millenial bank will help those people who have 10 percent funds to fulfill their dreams of own housing. property values. Meeting the conditions for a personal account guarantees a lower interest rate on the loan. A 2-year grace period and the possibility of annual credit holidays make the offer even more attractive. 

For what purpose Mortgage Loan at Millenial bank?

For what purpose Mortgage Loan at Millenial bank?

A mortgage at Millenial bank can be used for housing purposes, such as:

  • purchase of a plot for construction,
  • purchase of an apartment on the primary and secondary market,
  • building a house, 
  • adaptation of the building for housing purposes, 
  • refinancing of housing costs already incurred. 

Banks Millennium mortgage can also be treated as  a consolidation loan  for repayment of consumer loans and credits at other banks. The bank also allows the possibility of financing any consumption purpose. 

How much and for how long can you borrow at Millenial bank?

How much and for how long can you borrow at Millenial bank?

The minimum loan amount has been set at PLN 20,000. The maximum amount has not been set in amounts. The bank makes the loan amount dependent on the result of the creditworthiness test, assuming that the conditions regarding the amount of own contribution are met.

Millenial bank belongs to the more liberal institutions and requires the borrower to pay at least 10 percent. property values.

Loan repayment can be spread over a maximum of 35 years. The bank stipulates that the customer may not be more than 75 years old on the day of loan repayment. The shortest contracts are for 6 years, however, it is possible to repay the loan earlier (details later in the article). 

The customer can choose the loan repayment option – equal and decreasing installments are available.

How much does a mortgage in Millenial bank cost?

How much does a mortgage in Millenial bank cost?

One of the first costs incurred when the loan is disbursed is a commission. Currently, the  commission for granting the loan is 0% The customer does not have to meet any additional conditions. 

The bank’s interest rate consists of the WIBOR 3M reference rate plus the margin determined when determining the loan terms. 

The margin is determined on the basis of the ratio of the amount of credit taken to the value of the property (LTV ratio).

The penalty interest rate for late repayment is currently 10.00 percent. 

Currently, Millenial bank gives the opportunity to lower the margin if the customer has a personal account in the bank and makes non-cash payments with the debit card attached to it. An even greater reduction is due for guaranteeing the receipt of remuneration.

Mortgage at Millenial bank – the most important additional costs

Mortgage at Millenial bank - the most important additional costs

Additional costs of the Mortgage Loan may occur not only during the loan disbursement, but also during its duration.

 

Mortgage – promotions improving price conditions

The interest rate will be lower if the customer sets up a personal account and actively uses the debit card (details available earlier in the article). The bank’s flagship product in the field of bank accounts is the 360 ° Account.

Mortgage Insurance at Millenial bank

Mortgage Insurance at Millenial bank

Customers without savings of 20% loan value can also use the bank’s offer. Granting a loan from LTV (the ratio of the total mortgage amount to the value of the property being the collateral) in the amount of over 80%, but not more than 90%, is possible only with additional collateral in the form of high LTV risk insurance. The costs of insuring the low own contribution are fully covered by the bank. 

Bridging insurance, called by the bank a fee for increased risk, is collected until the bank receives a final decision from the court to enter the mortgage in the land and mortgage register in its favor. The fee is collected on the 8th day of the month. It is important that the client supervises the deadline for delivery of documents from the court. If the bank asks for it, it will collect PLN 300 from the client.

Insurance against fire and other random events must also be paid for. It is necessary to assign rights under this title to Millenial bank.

The bank requires the customer to have a life insurance policyand, as in the case of real estate insurance, assignment of rights so that in the event of an insurance event the repayment of the loan is not threatened. The customer can take advantage of insurance sold via the bank and choose the best offer on the market. Millennium Bank offers clients insurance covering death, inability to work (permanent and partial) as well as the inability to live independently due to an unfortunate accident. The premium is determined individually and constitutes 0.02 percent. sums insured for each borrower. The sum insured cannot be greater than the loan value, so it is not difficult to estimate the amount of the monthly premium. Every year, the sum insured is updated.

How to apply for a Mortgage Loan at Millenial bank?

How to apply for a Mortgage Loan at Millenial bank?

Completing all formalities will require the client to visit the branch. To receive more information than the website presents, you can fill out the contact form on the bank or Bankier.pl website, after which an adviser will call you back. You can also use the phone contact yourself and call the helpline.

Mortgage – additional information

Mortgage - additional information

  • Credit holidays – Millenial bank allows the borrower not to pay one installment a year (this results in an increase in loan installments, as the repayment period remains the same). The customer is obliged to notify the bank of such intention at least 14 days before the installment repayment date.
  • Deferment of repayment – the customer has the option of a grace period and not pay installments during this period. The grace period may not exceed 24 months.

Fees, commissions and interest are specified in the Mortgage Loan / Mortgage Loan. Details on the terms and conditions of granting loans / borrowings are included in the Regulations on crediting natural persons under mortgage banking services at Millenial bank SA The Regulations and the Price List are available at the Bank’s branches and on the website www.bankmillennium.pl. Each time the Bank assesses the Applicant’s creditworthiness and creditworthiness before granting the Credit / Loan; in justified cases, may refuse to grant it.
 
The actual Annual Interest Rate (APRC) is 4.55% and was calculated assuming that WIBOR 3M is 1.71% (as at 31.08.2018). The total amount of the mortgage (excluding borrowing costs) is PLN 256 000, the total amount to be paid by the consumer PLN 453 574.20, variable interest rate 4.01%, the total cost of the mortgage PLN 197 574.20 (including: commission for granting the loan) PLN 0, interest PLN 177 452.55, increased risk commission until the entry in the land and mortgage register for 6 months PLN 1 278, property insurance against fire and other random events according to the offer available through the Bank PLN 8 004, life insurance according to offer available through the Bank PLN 10,620.65, PCC 19 and court fee for establishing a mortgage PLN 200), loan term 29 years, loan installment PLN 1,245.56, number of installments 348. The calculation was made as at 14/09/2018 on a representative example, assuming that: the loan will be secured by a mortgage on the newly acquired property, while the value of the property to be used as collateral for the loan is PLN 306,000, the loan margin is 2.30% from due to the Customer having a 360 ° Account, subject to the monthly receipt of remuneration or other net income on this account and the possession of a debit card for this account, and the use of non-cash transactions using this card for a minimum of PLN 500 per month. 

In the case of the 360 ​​° Account, the account is then kept by the Bank free of charge and the fee for handling the debit card for this account is PLN 0. the loan will be secured by a mortgage on the newly acquired property, and the value of the property to be used as collateral is PLN 306,000, the loan margin is 2.30% due to the Customer having a 360 ° Account, subject to monthly receipt of remuneration or other net income on this account and having a debit card for this account and performing non-cash transactions with this card for an amount of min. PLN 500 per month. In the case of the 360 ​​° Account, the account is then kept by the Bank free of charge and the fee for handling the debit card for this account is PLN 0. the loan will be secured by a mortgage on the newly acquired property, and the value of the property to be used as collateral is PLN 306,000, the loan margin is 2.30% due to the Customer having a 360 ° Account, subject to monthly receipt of remuneration or other net income on this account and having a debit card for this account and performing non-cash transactions with this card for an amount of min. PLN 500 per month. In the case of the 360 ​​° Account, the account is then kept by the Bank free of charge and the fee for handling the debit card for this account is PLN 0. on condition that the monthly receipt of remuneration or other net income on this account and having a debit card for this account as well as performing non-cash transactions with this card for an amount of min. PLN 500 per month. In the case of the 360 ​​° Account, the account is then kept by the Bank free of charge and the fee for handling the debit card for this account is PLN 0. on condition that the monthly receipt of remuneration or other net income on this account and having a debit card for this account as well as performing non-cash transactions with this card for an amount of min. PLN 500 per month. In the case of the 360 ​​° Account, the account is then kept by the Bank free of charge and the fee for handling the debit card for this account is PLN 0.
 
In the case of loans with a variable interest rate, which are normally offered on the Polish market, there is a risk of changes in interest rates. The risk of changes in interest rates means that if the reference rate increases, the interest rate on the loan will be higher, then the amount of the monthly principal and interest installment will increase, which in turn will increase the cost of interest and thus increase the total cost of the mortgage. The customer has the option of presenting real estate or life insurance – as a collateral of the Bank’s claims – from outside the Bank’s offer – on the basis of an insurance contract concluded with an insurer on the list published by the PFSA. Granting a loan from LTV (ratio of the total mortgage amount to the value of the property,

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