Do you have a loan?

For many consumers, their own apartment is a dream that they can only fulfill if they receive a mortgage . When deciding on such a commitment, we check virtually every detail of the contract and the amount of each fee that we will be charged. This is understandable considering the fact that this type of loan is usually associated with the prospect of concluding a contract for several or even several dozen years. A good way to compare the costs is to use a mortgage calculator “> mortgage calculator, we can find on the Internet.

If we make the right comparison, many people focus only on the amount of interest. This is a huge oversight on our part. We must be aware that an equally important factor affecting the amount of credit costs is the margin that banks impose on us. The differences are significant and therefore it is worth spending some time to take a closer look at individual offers. In addition, it is worth knowing that the margin is not fixed and may be negotiable with the bank.

What is the margin and what factors decide about it?

financial loan

In simple words, we can say that this is the profit obtained from the sale of the loan by the bank. The margin is calculated when signing the loan agreement and as such is negotiable. The amount of banks depends on a number of important factors, e.g. the amount of own contribution and the current creditworthiness of a potential borrower are taken into account. Many banks want to attract customers using a lower loan margin, provided that the person uses additional products. A classic example of this is proposing personal bills due to the fact that borrowers receive their salary on them.

This tactic has been used for a long time by BBH, which has in its offer a mortgage loan from Bank BBH. The terms of the regulations state that if at least one of the borrowers has their current account in this bank, the margin will be reduced. Depending on the type of the account and the fulfillment of additional reservations (e.g. permanent inflows to the account in a certain amount), the margin may be reduced from 0.2 to 0.3% In the context of a mortgage, this gives tangible savings to the borrower.

How do banks make money on a reduced margin?

How do banks make money on a reduced margin?

You can ask yourself, how do banks earn a reduction in their margin if we open a personal account with them? The main thing is that banking specialists know the client’s habits perfectly. If, in a given bank, we already use one product, for example, our account receives our monthly salary, if we decide to use a credit card, we will most likely choose our “native” bank.

If in the near future you are interested in taking out a mortgage, you should pay special attention to all aspects of the offer as it is presented to you by the bank. Sometimes it is worth spending a little more time to choose the most favorable conditions for you, especially since the mortgage is a commitment for years.


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