At the end of your career, loans for 100% of the property value are rising. Currently, it has 10 banks on offer, and 4 of them increased margins for loans without own contribution last month. See adkoutreach.org for a summary
The final end of loans for 100 percent of the property value is getting closer and closer. Only less than two months to take out a loan are those who do not have savings for the purpose of their own contribution. According to Recommendation S, from 2014 the loan may not be higher than 95 percent of the property value. This means that you must make a 5 percent own contribution. People without an own contribution can also secure a loan for an additional property. In this way, the LTV (loan to value) ratio will be lower and will allow financing transactions without own funds. However, for the vast majority of customers, the only solution will be to bring in own funds. If none of the above methods is possible, only the debt remains this year.
The choice is more expensive
Loans for 100 percent of the property value are still available from 10 banks. This number has not changed recently and there is no indication that before the end of this year any of the banks would change their offer in this respect.
Unfortunately for potential customers, the last weeks have not brought good information. Many institutions have raised their loan spreads, making 100 percent credit even more expensive. In some banks, the increase affected all LTV segments, but some of them raised margins only for LTV customers above 90 percent. This indicates a willingness to use the last months and increase income on loans granted to customers who must take them later this year. Recently, margins for loans with LTV greater than 90 percent have been increased by Daisy Bank, Petin Bank, PPO Social Bank. The average margin increased by an average of 0.1 pp, which in the case of a loan contracted for 25 years means an increase in the monthly installment by about 6-7 USD for every 100 thousand debt.
When choosing a loan
Regardless of the LTV level, you should always pay attention to additional costs such as commission or insurance. For a 100 per cent loan, you will also have to pay a low down payment insurance. When assessing the offer, you should not only suggest interest and monthly installments, but also other fees.
The table below presents credit margins for loans for 100 percent of the property value. The final level depends on the size of the loan, the amount and source of income, as well as the possibility of using other banking and insurance products.