Mortgage loans: how to pay less

How to choose the "right" bank

When choosing a credit institution, it is desirable that the borrower is already its client. If he regularly receives wages through this bank for a long period of time, this is great. In this case, it is quite realistic to rely on various benefits and promotions, through which it is possible to save a lot. In addition, any credit institution treats its customers with care, therefore, it is worth counting on some relief in mortgage rates, if an individual has a reputation of a reliable client in a bank.

What can you save

The most optimal mortgage lending option for a borrower is provided only to clients who have a substantial official salary and financial savings, which make it possible to make a down payment on a loan or pledge on it. Unfortunately, such a minority of borrowers, so the banks offer other conditions, but it certainly increases the overall rate on the loan, even if the lender will say the opposite.
The fact is that in addition to the officially announced interest rate, there are many other important parameters that significantly aggravate the burden of mortgage lending. One of them is the collection of substantial commissions for the issuance of credit funds. Some banks do not have such fees, but there are very few such institutions; in others the fee is charged at a time; in the third stretched for the entire period of payments on the mortgage. The latter are able to lead to overpayment annually by 2-5%, which for mortgage lending will eventually result in a decent amount.

Do I need to take out insurance

The law prohibits the imposition of insurance services by banks, but in reality it is “voluntary-compulsory” - if the client does not agree to enter into a contract of voluntary life insurance, health and job loss, you can not expect to receive a mortgage loan, or the percentage on it will be exorbitant . In this case, you can try to choose not one insurance company that provides a package of services at unprofitable rates, with the inclusion of insurance payments in the total mortgage payment, but to draw up contracts with different companies, if the bank allows it.
In any case, it is not necessary to limit the search for a lender to one or two banks located nearby.It is advisable to use online services that collect information on banking products of all credit institutions of a city or region, carefully review the terms of a mortgage, the requirements of banks to their borrowers. Then you need to call the selected institutions, clarify the issue with credit managers and choose the best option.

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