When looking for a convenient option to change the terms of a previously concluded contract, it is worth taking advantage of consulting with Good Finance financial advisors who will tell you what to look for and help you choose the optimal solution fully tailored to the client’s needs.
How to get a refinancing loan?
The procedure for entering into a refinancing mortgage is similar to what you go through before buying a property. Banks reward reliable borrowers who have been servicing their liabilities regularly for a long time.
The timely repayment of debts incurred so far is the first criterion for the preliminary examination of creditworthiness in such a procedure.
Due to the favorable interest rate on foreign currency loans, refinancing in currency may be attractive, but you must take into account the risk associated with changes in the exchange rate of the foreign currency against the zloty. To avoid it, borrowers receiving remuneration in PLN are recommended to conclude contracts in PLN.
For whom is a foreign currency refinancing loan
Refinancing in a foreign currency can be a good solution for property owners who have entered into a loan agreement for the purchase of an apartment in euros or Swiss francs, because repayment of the original loan does not generate additional costs associated with the possible conversion of receivables. Loans denominated in euros can be of particular interest to people who earn in this currency.
The structure of income with a large share of income in euros will be a decisive advantage when negotiating the terms of refinancing a mortgage.
Inflows in the currency
In which the agreement was concluded with the bank is the best hedge against exchange rate risk.
Due to the differences in mortgage refinancing offers, it’s a good idea to consult with professional financial advisers.
Comprehensive knowledge of the market situation will allow you to choose the best solution in a given situation. It also doesn’t hurt to consider other options for refinancing your loan to reduce your monthly installment.