Earning the lowest or even the national average, it’s still hard to set aside money to fully Fund the purchase of your dream home. Then for many people the only salvation is a mortgage, preferably with its own contribution. Why is it profitable to take a loan? Because regardless of the situation you need somewhere to live. Renting an apartment, you have to pay the owner for the rent.And you never know when you will have to move out of this place. Instead, you can buy an apartment, and instead of paying for the rent, pay a fee for the loan. Taking a mortgage with a large own contribution, very often you can get the best offer from the Bank. The higher the first Deposit, the lower the risk for the banking institution, and for the borrower, the total cost of the loan. In such a situation, pay for the loan may be lower or take a loan for 20 years instead of 30. It is best to prepare for the start of about 20% of the value of the investment.
Keep in mind that a loan is always a long-term solution. It is necessary to have a permanent income that will be able to cover the monthly installments on the loan. Banks often also require additional security in the form of real estate insurance, and even life insurance, which cover the amount of the loan for the apartment in crisis situations. Unfortunately, these supplements produce subsequent costs.