Loans for houses are getting more expensive: an HM inspector does not recommend going to the bank



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According to the Bank of Lithuania data, in January this year, the average interest rates on house purchase loans reached 2.36%, and the level of loans canceled reached 2.41%. To make a comparison, this figure was 1.94 per cent four years ago.

The Chief Executive of the Macro-Prudential Division at the Bank of Lithuania, Jokūbas Markevičius, says that although interest rates in 2018 were higher than the previous season, from a historical perspective, they are still very low. It is reported that between the financial crisis the period was between 3% and 4%.

“The average growth of new housing loans started in 2018. It increased from 2.0 to 2.3 per year. As the interbank rate remains negative for Euribor, this increase was due to a rise in the margin of interest. In general the degree of interest reflects the risk of bankers, the cost to banks or a competitive market situation. Data shows that the risk to customers and bank costs has not changed significantly, so that we can relate the extension in margin to the growth of bank competitive power.

The recent rise in the banking sector has increased, and residential mortgage applications are not reducing, so banks operating in Lithuania have the opportunity to use levels of demand for their services t winning and promoting interest. It should be noted that the average levels of mortgage interest in the euro area have not changed. True, flat levels have been settled over the last few months and do not rise yet. Loan market There are supply demand laws, so as levels of market interest increase, more mortgage players are more likely to enter the mortgage market. This should be reducing the rate of interest, ”he expects J. Markevičius.

Lithuania divides the edges they get – in each place they agree

Steponas Jurelė, Chief Executive of Portal Bankai.lt, maintains that the growing mortgage loan rate in Lithuania has been affected. For example, it refers to the consumer market – interest rates on this loan type have been declining in recent years as many more companies offer such a service. 'market.

Essentially, banks have a main goal of earning, and when the market is not competitive, it makes money easier.

Steponas Jurelė

“Three banks make up the mortgage market, but the majority of the pack is owned by SEB and Swedbank. The main purpose of the increase is to increase the competition's mortgage interest rates and the willingness of banks to earn and the required profits. We are only in a competitive price to expect at least a more favorable price. T

Currently no external reason to increase mortgage interest rates – EURIBOR is still defined, and bank interest rates on investments are near zero. But the reasons why it is interest are of interest to the banks and economists who look at the market situation, forecasts and other factors. Essentially, banks have a main goal of earning, and when the market is not competitive, it makes money easier. After all, it is only banks that fix their customers and no one can come to a bank and say, "Here you offer a little sad, losing t your profits, moving to lower offices and reducing your salary for workers. "

It was only a matter of time when level banks were built. The Bank of Lithuania had to forecast and prepare for this in advance, and to take strategic actions to stabilize the market. And especially after the news of the association between Nordea and DNB. I think the competition between the banks would have increased by coming to a new bank such as Polish, German, Spanish or English with a bundle of banking services. In the mortgage market, Citadele, Šiaulių bankas and Medicinos Bankas could give more of this result and competition with the big ones. Do you remember the prices of other supermarket prices when Lidl appeared in Lithuania? Now we have the same position as the shopping centers, ”said DELFI S. Jurelė.


Loans for houses are getting more expensive: an HM inspector does not recommend going to the bank

Bankruptcy collects the terms of a real housing loan depending on family members and income. For example, in February 2019, a family of 3 with a monthly income of 1400 Eur, 90 miles. The loan was secured by SEB for 2.12%. for. Swedbank offers 2.19 per cent, Luminor – 2.5 per cent.

In January, a family of 2, whose income reaches 1600 EUR / month, received 100,000. euro loan of 2.2 per cent. SEB edge, Swedbank offered 2.19 percent, and Citadele is not less than 2.4 percent. A further 2-person family, who has an income of 1600 EUR / month, received 84.2 miles. Eur loan from Swedbank with 2.09 per cent. Luminor offered 2.25 per cent.

According to S. Jurelis, the data the residents give shows that the limits of bank housing loans are growing evenly in all banks.

“We had a Danske bank, DNB, and Nordea, which often took most of its interest and it was the" black horse ". Now there is no "single" bank. However, it should be remembered that circumstances in all situations and families are assessed separately, so often the banks with the lowest interest rates are different, ”Jurel said.

It is important that the family changes in financial circumstances for a mortgage loan, confirmed by S. Jurel.

If the loan is 40%. from income, and then a mortgage lending should be considered carefully and I recommend that it be abandoned.

“Interest rates on loans are always changing, changing and changing. In fact, the loan borrowed at the lowest level is very appealing, but it is more important that you look at the interest at that time, but which section of loan will be made up of income. You must analyze your situation and if your mortgage loan is up to 10 per cent. You can feel really comfortable if you are interested. However, if the amount of the loan is 40%. from income, careful consideration should be given to taking out a mortgage loan and I recommend that it be abandoned ”, – advised S. Jurelė.

The NT auditor advises borrowing from the bank

Housing loan interest rates are rising, but people are still happy to build and purchase houses, monitoring the estate real estate (RE) Arnoldas Antanavičius, leader of Realdata. This is evident from building sales figures. In his opinion there would be no more change but if the interest rate was 3.5%. or nearly 4 per cent But, according to the auditor, this is not really true. Especially as a result of a recent decision by the European Central Bank (ECB), interest rates should change to the end of late 2019.

“We see that the European economy shows signs of decreasing, the key economies are still standing, and it would be a wrong decision, as this would bring the European economy on t harder. If you start raising an interest, the building would be 0.25 per cent. no, not, for these are usually held every quarter or half year. Following on from SA's example, one was taken in a quarter. It would take a long time for that stage or one and a half to come off these lifts. So the first lift or the second list of cataclysms would not be negative.

But it is also a sign that things are not good for economies if the ECB does not even begin to raise an interest. As a result, we're not in the same economy and there's no interest in a healthy economy. I would say for the matter and I feel that it should be seen as cheap and cheap, but not good with the European economy. Any change, when it is difficult to stimulate the economy even with low rates, can stop growing wages, start rising unemployment, economic difficulties and how we need to give loans. though they are free? If there is no income to attend, the problem will begin accordingly. These are the threats that people think may be, but they don't look really. As we can see from the market situation, statistics, people willing to invest, are the risks of this in the hope that nothing will happen, ”said Antanavičius.

With the risk of acceleration, the expectation is for economic growth, with one advice – to avoid borrowing.

When someone asked me, I advise everyone not to go to the bank or the loan, now, not being tempted by free cheese, because it might have been cheese like ropes.

Arnoldas Antanavičius

“When I ask someone, I advise everyone not to go to the bank and to borrow, without being disturbed by cheap cheese, because it may have looked like cheese in ropes. This rush does not bring benefits, especially if it is borrowed for investment purposes. This is likely to be a huge problem and there will be no destruction in the future.

I advise you to be more accountable and worse about everything. Due to the lack of a solution for the situation with Brexit, it is unclear how it will end: whether it is going to be well removed or left unexpectedly at the end of March. There are many signs and are not very good. In some way people tend to forget these features outdoors and see their situation around people buying a cache. Their salaries may have increased and they decide on closed loop statistics, ”the analyst gives advice.

There are many signs and are not very good. In some way people tend to ignore these signs and see their situation better.

Arnoldas Antanavičius

In response to the ECB's plans to raise interest rates, Mr Jurel also pointed out that ECB interest rates should not be lower under normal economic conditions.

Representative of the Bank of Lithuania, Head of Unit for Macro-prudential Analysis, said that although a reasonable price for housing in Lithuania continues to be historically good due to pay rises and relatively low interest rates, it always considers what it means. financial capability is good so that it does not disrupt too much money in the future.

How you pay taxes is also important for better situations

According to J. Markevičius, the levels of interest offered by the banks depend on the risk of the residents borrowing their periods in time. This risk is measured by the number of indicators. One of the key features of the sustainability of household income, the ratio of loan payments and income, is the level of current debt.

If a household is likely to be late to pay their bills, bankers can manage as a higher risk and offer a higher interest rate.

Jokūbas Markevičius

“On the other hand, it is important for banks that hold accountabilities and accountabilities for their other financial responsibilities – for example, payments for facilities. If a household is likely to be late to pay their bills, bankers can manage as a higher risk and offer a higher interest rate. Therefore, in order to improve the borrowing situation, residents should take a responsible view of existing liabilities, as banks will usually add greater value to historical or bank banks. , 'said J. Markevičius.

Bank manager.lt S. Jurelė shall apply that banks also value the age, occupation, sustainability of income, and assets purchased. And to get the best deal on a home loan, go to the main banks and negotiate an individual offer. Get all the offers, compare and then negotiate.

"Of course, the discussions will be difficult if the bank is debating or borrowing at a distance, but if the bank wants to borrow it with them, the company will try it, and it might give something better." T (…) Income is important, but not the main factor. If there is a high income, but you are in debt or your job is dangerous, income is unstable or it is probably the most common income. (…) The best situation is to say, but I believe the formula should be: one adult or family, each working in a sustainable workplace, clear responsibilities, without it any debt, the purchase of a new building, and a monthly loan of up to 10 per cent from your income. But this is quite advanced and every bank is different, so you only get the chance when you go to the bank and it will give you a special purchase.

It should be noted that the bankmark is not the main sign when taking out a home, there are other terms and taxes which may be very important and expensive in the future. 'how to repay their loan,' said Jurelė.

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