Home loan – where to get your own contribution?
Since the Youth Flat program ceased to operate, the dream of owning an apartment has become far more distant for many. The MdM housing loan consisted of the state subsidizing the own contribution required for the mortgage loan. Unfortunately. The last applications for funding were accepted until January 1, 2018.
Housing loan – own contribution. Today, the amount of own contribution in most banks is 20 percent. property values. So if you want to buy an apartment in a larger city (which for a parent means a greater chance of a nursery and kindergarten, and better job opportunities), then on average without 50,000 PLN for your own contribution it will be difficult for you. Importantly, money for own contribution cannot come from a loan. For a single parent, this amount is often not available.
The successor to the MdM government program was to be another housing loan for young people – the so-called “Apartment Plus”. The project provided for large subsidies for housing for middle-income people. However, many cities are withdrawing from this program, and out of 100,000 of flats, only 480 apartments were built.
In 2019, there is no reason to count on financing the own contribution by the state. Banks are not favorable for single parents, because one parent means less creditworthiness for the bank. If both parents work, this ability is much greater, which affects the possibility of taking a higher mortgage.
Housing loans for single mothers – at the moment the state does not provide any housing subsidies for single parents. To raise funds for your own contribution, you can use:
- Family benefit – if your income per person does not exceed PLN 674 (in the case of a disabled child – PLN 764).
- Maintenance fund – this is a good option for those who have child support awarded by a court, but obtaining them proves ineffective.
- Supplement paid for raising a child alone.
- 500Plus program – in the case of single parents, this benefit is granted with income not exceeding PLN 800 net.
Read also: Mortgage – which bank is the easiest to get? Advise!
In addition to the above support options, single parents can also try other ways to cover their own contribution. Here are some proven ways.
- Cash donation from a loved one (parents, grandparents, siblings).
- Mortgage loan with low down – some banks offer mortgages with 10 percent. own contribution provided that you take out additional insurance and you have a very good credit history.
- Securing with another real estate – the bank may accept real estate belonging to another person close to you as a collateral.
- Apartment from the secondary market – some banks are able to accept the difference between property valuation and purchase price as own contribution.
Housing loan – how to get it?
Before applying for a mortgage, calmly compare the offers of all banks. Maybe you’ll come across an interesting promotion? Also remember that you can always negotiate the offer.
A housing loan is a liability for several years, it is worth looking for a good offer and considering all options. To make sure you have chosen the right one, use the mortgage comparison tool and mortgage installment calculator.
This will come in handy: Calculate your credit standing using the calculator
Comparison of housing loans will let you find out what the cheapest housing loan is, how much your installment loan will be, and – how much – your monthly budget will be charged.
A housing loan step by step
- Check your creditworthiness, because it depends on her whether the bank will grant you a mortgage.
Creditworthiness is affected not only by your income and the number of people remaining in your household, but also by the borrower’s profile and whether you have other financial obligations.
- If your credit rating is positive, you can start looking for the best loan offer for yourself.
This is the moment to negotiate – do not agree to everything that the bank offers you. After receiving the offer, calculate the installment of the housing loan – this is important because after signing the loan agreement you will have to find this amount in your monthly budget.
- Credit formalities – something that probably everyone who has applied for a housing loan in their lives are afraid of.
Do not worry! A bank adviser will guide you through the entire credit process.
- Signing a loan agreement. Remember to read the contract carefully before signing. The mortgage will affect your life for the next dozen or even several dozen years.
- Launching a loan and starting repayment of installments.
Also check: Can you take a mortgage without a down payment?
I have gathered the documents that are most often required for a mortgage in the table below:
– photocopy of your ID card
– photocopy of another identity card
– loan application
– current employment and earning certificate
– bank statement for the period indicated
– PIT-37 declaration
– documents regarding other liabilities
– documents regarding the property you want to purchase (e.g. appraisal report)
Housing loans for single parents – do they exist?
There is no such thing as a housing loan for a single mother in our housing loan market. There are very few opportunities that improve the comfort of living for single parents, and small surcharges are only for those who have low wages.
Remember, however, that the mortgage market is constantly changing and it is possible that the offer for single-parent families will come back soon, maybe a housing loan for singles?