The global crisis has not yet receded, but there is still room to live. If any of us had known in the past what would happen to the modern economy, we would have thoughtlessly made a mortgage in Latvia not in 2017 , but several years before. But even now, it has all the conditions: the market is highly competitive, creditors are cutting interest rates and simplifying the terms.
In the summer, however, one can expect another rebound in promotions and promotions, as rarely do anyone planning to buy real estate during the holiday season but construction does not stop, and builders need funds every day for further investment in construction.
Loyal terms for mortgages in 2017
Some builders, in collaboration with large companies, have developed a whole mortgage facility in Riga and Riga District. Such an offer will be beneficial to all parties, including the bank. Here are the main principles of cooperation:
1. A large company allows its employee to enjoy some benefits (subsidies), while the employee guarantees not to change his job, to continue working here;
2. A builder who is a business partner of an employer-employer offers a good discount on housing;
3. In 2017, the bank offers a reduced annual mortgage.
It is this system that allows to receive the title of the most advantageous mortgage in Latvia, which has already been used by many and will probably become the most popular financial product of this year.
Important nuances of mortgage design
- If you get a salary in a bank account, it is best to apply for a mortgage at your “salary” bank. This will reduce your risk of getting denied even if you are unable to submit an income statement. But the creditor can only consider official transfers of money from your employer, not general transfers to your account. At your bank, you can always expect a small reduction in the annual rate because you are a loyal and verified customer to the creditor.
- Find out more about current loyalty programs and social support in your area that allows you to buy a low discount home.
- Perhaps your individual living conditions can help you take advantage of at least a small percentage cut .
- Most lenders will necessarily accept your mortgage application when it comes to new construction. You simply find out in advance which builders the bank is working with and accept the creditor’s first offer. By doing this, you are almost unlikely to receive a negative answer.
- If you decide to make a payment on your mortgage repayment in excess of the minimum monthly payment, it is imperative that you do so with the assistance of a bank employee, as the overpayment should not cover the annual rate but should reduce the principal amount of the loan itself.
- Before you sign a mortgage agreement or mortgage loan, find out if you will be able to repay the loan ahead of time and pay no penalty. This is very important if you can save on your mortgage repayments in the future.
Take it or wait?
Many in our country manage to become owners of their own apartment, thanks to credit. It is possible that this year will also give you a mortgage. Because housing prices are rising much faster than living standards.
Comparing the monthly payment on a mortgage is almost as much as the rent on the apartment. In order to make a decisive decision this year on a home or apartment mortgage, you will need to talk to a variety of professionals and find out about your region’s future prospects, possible discount programs, etc.
You should also think about your options to fully repay your mortgage immediately after 2017. It is more profitable to make increased payments to pay off debt faster than to stop paying your liabilities completely in the event of financial difficulties.