Mortgage and Financial Services
Mortgage and Financial Services
The market is full of real estate agents, which vary in quality, service, access brokers, but also many additional services such as financial services. For you who decide to sell your property, we are able to provide some possibilities of financial services to your satisfaction. Especially the purchase of real estate, even in debtedness, or provision of funds before the property is sold. We can provide these services because we are certain of being able to sell your property and we have a strong financial base.
If you are considering buying real estate, and you lack the necessary funds, you can solve your problems with mortgage loans, or loans from building savings. Unlike conventional loans are both forms of lending, supported by the State.
What is a mortgage?
A mortgage loan is a loan with a repayment term of at least four years secured by a security interest on domestic property, even under construction, funded by at least 90% through the inssurance and sale of mortgage bonds by mortgage bank. The mortgage loan is provided for specific purposes by the mortgage bank.
Who is it for?
A mortgage loan is designed for applicants from the age of 18 years residing in the territory of Slovakia, for EU citizens with income from companies headquartered in the territory of Slovakia, but also for foreigners without permanent residence and income in Slovakia.
What are the advantages of a mortgage loan?
- Quick solution
- Funding up to the full purchase price, it means: You do not need any own funds
- The possibility of spreading payments for long periods (up to 30 years)
- State support and deduction of the interest on the tax base
- Low interest rate
- The possibility of a combination of building savings or life insurance
- The possibility of a loan without documenting income
What can the mortgage be used for?
- for the acquisition of domestic property or its part
- for the construction or modification of the finished buildings
- for the maintenance of domestic property
- for settlement of the property of spouses, settlement of inheritance
- for repaying the loan used for the purposes stated above, when a mortgage loan provided by the mortgage bank in bankruptcy
- for repaying the loan provided for the purposes stated above, which is not a mortgage loan
How is a mortgage loan secured?
Mortgage loan must be guaranteed by law of a lien on domestic property. Mostly, it is the pledge directly to the purchased property. Mortgage loan can be secured bz:
- Non-residential premises in the apartment building when funding changes for housing
- Family house
- Family house under construction
- Building land
- Recreational object that is livable all year round
Is the mortgage amount limited?
The amount of mortgage credit is limited to the value of property and the ability of the client to repay the loan (his credit rating).
What are the repayment terms of a mortgage loan, what is the interest rate?
Repayment term is usually from 4 to 30 years. Interest rates are set by the banks according to interest scale. The interest rate depends on the duration of fixation and other conditions.
How can I draw on credit and pay a mortgage?
A mortgage loan can be spent once (if financing the purchase of property or maintenance, reconstruction) or gradually (in the case of the construction or major renovation). Repayment of the client is agreed whether by fixed installments (all the time when the loan is repaid at the same amount), but also by progressive or degressive repayment (the amount of payments during the repayment increases or decreases).
How are mortgage loans supprorted by the state?
Currently, the government subsidy is solved in two forms. The first is so- called Variable state contribution, which can be claimed when a client is applying for a loan and is not benefiting from another loan. The amount of this contribution is currently zero. The second form is called”Public contribution for juniors”. This can be asked in case a client meets conditions set by the state (age and income restrictions).
What documents are needed to process the loan?
Factors required for an application vary across banks, but usually it's receipts and documents necessary for real estate valuation.
Mortgage Loan Insurance
Property that is subject to the provisions of the loan must be insured to the amount that would, in the event of a claim, fully replace the cost required to novation of the original state of the property. In some cases the bank may require life insurance as well.