Real estate loans. Check how to enlist

Do you need cash for any purpose and you care about the lowest interest rate? Compare different real estate loans and choose the most favorable option.

Pledged loans – how does it work?

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If you are the owner of any real estate – apartment, house, office space, plot or arable land – you can use it as collateral for a loan. In exchange for establishing a mortgage in the land and mortgage register, you can get a loan of up to 80% of the property value.

Establishing a mortgage does not change your rights to the property – you still remain its owner and can use it freely.

Real estate loans, also known as mortgage loans, are often a much more beneficial solution than cash loans. For people who are in a difficult financial situation, they can also be the only way to get a loan for a large amount – in the case of companies it can even be several million USD.

Real estate loans and cash loans

Real estate loans and cash loans

Bank mortgage loans can be an attractive alternative to a cash loan. If you plan to renovate an apartment, vacation, wedding, buying a car or any other expense, consider financing this way. Why?

  • Like a cash loan, a real estate loan is granted for any purpose. This means that you don’t have to declare what you are going to spend the money on. This distinguishes a mortgage from a mortgage, which must be used to buy or renovate a property.
  • A loan against real estate can be granted for a much longer period than a cash loan. Thanks to this, your monthly installments may be lower.
  • By choosing a cash loan, you can get a higher amount of money. While the maximum amount of cash loans is about 150-200 thousand. USD, a loan against real estate may be granted even for 80% of the value of a house, flat or plot. This means that if the market price of your property is 500 thousand. USD, you can borrow up to 400 USD.
  • Mortgage loans usually have a much lower interest rate than cash loans. While the best loan against real estate bears less than 5%, the actual interest rate on the most favorable cash loan is 9.66%.

If you don’t own a property, you still have the chance to take out a mortgage. All you have to do is find a person who agrees to let their property secure your loan – for example, a partner, friend, parent or another family member.

Real estate loans – formalities

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To get a mortgage from a bank, you’ll need to provide documents that will prove your ownership of the property. They can be:

  • excerpt from the land and mortgage register of the real estate,
  • notarial deed confirming the purchase of the real estate,
  • act of donation,
  • excerpt from the land register,
  • real estate valuation made by a real estate appraiser,
  • property photos,
  • certificate of non-payment of rent in a cooperative or housing association.

In addition, as with other banking procedures, you will need to provide documents on the basis of which the bank will assess your financial standing. Usually, these are:

  • proof of income,
  • contract of employment,
  • account statement.

After submitting your mortgage loan application, the bank will also check your credit history in GFI. If in the past you had problems with timely repayment of loans, maintenance or telecommunications bills, this will be recorded in the database and may affect the bank’s refusal.

In order for your property to be considered as collateral for a loan, it cannot be encumbered with any other obligation. This means that if you are still paying off the mortgage for a flat, you cannot use it as loan collateral.

I am looking for a real estate loan – what about non-bank companies?

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Loans against real estate are also granted by non-bank companies. This option can usually be used by people who are in financial difficulties.

Unlike the bank, they will often not require income or employment certificates from you, nor will they check your credit history at GFI. To grant the loan, documents confirming ownership of the property are sufficient.

Non-bank real estate loans are usually associated with considerably worse conditions. The maximum repayment time is usually 36 months, and the APRC reaches even 40%.

Loan without commission – online loan offers

Do you need a quick cash loan but you want to avoid high costs? Below we present offers of payday loans with the first loan without commission – check our offers!

Cash loan without commission – what conditions do you have to meet?

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What requirements do you have to meet to be eligible for the first interest-free loan? First of all, it must be your first commitment to this particular Good Finance institution – for each subsequent one you have to take into account an additional commission for granting the loan and interest. In addition, the same rules apply as for other payday loans, i.e. you should:

  • have Polish citizenship,
  • meet the required age threshold.
  • not have debts in GFI, although this is not an obligatory condition,
  • have a certificate of earnings – this is also required only for some loan companies.

The vast majority of Good Finance institutions direct their offers to customers who are at least 18 years old – this is the case with Good Finance.

However, the borrower’s minimum age increases to 20 or even 23 years. Also, remember that offers may also be limited by an upper age limit – most often it is between 65 and 75 years old.

What does a para-bank company gain in this situation?

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By looking at the first interest-free loans, you are certainly wondering where the catch is – after all, you get the money you need, in a very short time and with almost no formalities. So you should pay for it – and you pay nothing.

It turns out that there is no catch here in the form of additional hidden costs. Such a free cash loan with no commission is only intended to encourage you to take advantage of this institution’s offer in the future – in the end, you have already checked it and everything went smoothly and without difficulties.

Instantaneous pay no commission – facts and myths

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The first loan without a commission is an offer that has been around for a long time – that’s why a lot of myths have grown around it. Below we present a few of them together with an explanation of whether they are true or not. Check if you already know everything about free loans without certification!

Payday loans for free are only given for a month

MYTH The vast majority of cash loans offered are granted on a monthly basis. However, it turns out that there are also those with a longer repayment period – all you have to do is mention Zaplo, which offers interest-free loans that you pay back after 3 months.

An APRC equal to 0% means that the loan is free and without additional fees.

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FACT The actual annual percentage rate here is 0%, which means that you pay off exactly as much money as you borrowed. Therefore, you do not have to pay any additional fees, commissions or interest. After all, remember to read the exact terms and conditions of a particular loan before taking it.

You can take several loans with no commission at the same time.

FACT Of course – nothing prevents you from submitting several loan applications to various para-bank institutions. Positive consideration of the application in one company does not mean that you cannot apply for another loan in another.

However, remember to drag them with your head – otherwise, you will quickly fall into a spiral of debt. You can read about how to avoid falling into it in our article: “How to avoid falling into debt.”

The first interest-free loan can be taken for any amount

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MYTH The vast majority of para-bank institutions offer up to USD 1,000 under the first free loan. Only later, when you repay this liability, you can borrow a higher amount – of course, then you will pay interest and commission because it will be your next loan.

Untimely repayment of the first loan without commission is equal to accruing interest

FACT If you do not pay back the loan, it will stop being free. You will have to pay additional interest as well as cover the costs of reminders and possible debt collection. You can also enter into the database of debtors, which will make it difficult for you to receive a loan in the future.

Good to know!

Instead of waiting for additional interest for late repayment, you can try to extend the repayment deadline. Of course, you will also pay a considerable amount for this option, but lower than the cost of additional interest and reminder prompts.

Remember to always borrow responsibly and control your debt – otherwise, it’s not difficult to fall into a spiral of debt.

Be sure to read the loan agreements before you sign them to avoid harmful clauses and hidden costs. What should you pay attention to? You can find more details in our article – check it out!