Mortgage rates are historically low. This was helped by the change of law and competition. Last year, Good Finance Bank just provoked almost all banks to cut rates with an interest rate of 1.49%. Now Good Finance comes with interest of 1.39% pa What does it do with the market? How are other banks doing this?
Bank offers 1.39% without hidden conditions
No credit insurance, no real estate insurance through the bank, no credit cards, savings accounts and overdrafts. Looks like a fair offer. Every person gets interest on the mortgage at 1.39% pa for 3 years.
Terms of the current Good Finance campaign
- Financing up to 90% of property value (LTV). With LTV over 90%, Good Finance makes a 0.5% surcharge.
- Submission of the application from 4.2.2017 to 30.4.2017.
- 100% discount on the mortgage approval fee (0.8% of the mortgage amount by default).
- Possibility of using interest guarantee (see below).
Good Finance Bank guarantees interest reduction in case of lower rates
In 2014, I recalled the mortgage with interest of 2.44%. At that time, it was pretty good at 100% funding. In 2015, I was already thrilled a little less. And in 2016, if the bank had not cut my interest off the fixation, I’d been ravaged by the fact that everyone around them had less interest than me.
People have a similar situation. Some agree with the bank to cut interest rates outside anniversaries, but this is not the case, but they are the best cases. Some people do not fit it into a calculator and they refinance their mortgages headlessly outside their anniversaries and reimburse even more. Some people do nothing but envy those who take mortgages with lower interest rates.
Good Finance now guarantees that if it officially cuts interest rates on mortgages in 2017, it will reduce the client’s interest on his mortgage. However, this applies only to new bank clients who qualify for the event.
Interest Rate Guarantee Conditions:
- Using the optional “interest rate guarantee” service
- Using the “Active Account” Optional Service
- The reduction is possible only 1 times until 31.12.2017
The client must apply for a reduction in the interest rate and then sign the mortgage amendment. There is no fee for the supplement.
Conditions are acceptable. There is nothing behind that that can not be accepted.
Whether it’s a Good Finance friendly move or especially marketing, we’ll learn at the end of the year. No one can confirm or refute 100% that interest will go up or down. Maybe Good Finance bank is safe and believes that interest will not go any further. Let’s see if there is any chance that interest will go down in 2017.
What interest on mortgages do other banks offer?
Some banks have already raised interest in mortgages. From the big banks, Slovenská sporiteľňa did so. Did she want to show the market “come up and you” or just want some rest for her approvers? We will see in the near future what direction they will take in SLSP in the area of mortgages.
In the list below, you can see what the rates in other banks look like. I only select those banks that offer up to 1.5% competitive interest. I apologize to the banks.