The number of banks offering mortgages on the Czech market grew by only 3 members last year. Lite Lender, Best Bank and Cream Bank also started offering mortgages in 2012. Most banks do not sell just one type of mortgage, which in the final analysis means that the loan seekers need to navigate among dozens of products. Moreover, the orientation in the final mortgage prices is complicated by the minimum rates stated by banks. According to experts from Astro Finance, however, only about 10% of clients will reach them. Thus, a total of 90% of candidates, after visiting the bank’s website or calculating on financial website calculators, find interest that may be tenths of a percent lower than the rate they would actually receive.
Who asks for a mortgage often finds minimum interest rates in interest rates.
These tend to be 0.2 to 0.4% lower than real bids . The 0.2% interest rate difference for the average mortgage per year is approximately USD 3,200. If the mortgage is fixed for 5 years, then it will bring a difference in interest of USD 16,000, ” Anthony McDane , Chairman of the Board of Directors and CEO of Astro Finance , which deals with mortgage loan consulting , explained the importance of mortgage selection. “ Most of the calculators on Czech financial websites also draw on the minimum rates that are publicly available on the websites of banking houses. Comparing with these calculators can therefore also produce distorted results, ”added McDane.
Many factors play a role in comparing monthly mortgage payments.
It is not only the length of the loan or the length of fixation, the amount of the loan is also important for the price of the loan in comparison with the purchase price of the property. In recent years, moreover, the trend has been the dependence of the interest rate on insurance coverage, the active use of the current account, or possibly the closure of other bank products.
If the bank offers only mortgage loans, the client will get discounts for negotiating products of a commercial bank or insurance company from a financial group. You can pay a different price for the loan depending on its purpose. Therefore, on the calculator at Lite Lender you can choose between buying, refinancing, reconstruction, construction or non-purpose use of the loan in the first steps.
Those interested in mortgage loans would spend 2 to 3 days in determining the real rates of mortgage banks at branches.
So we decided to make a calculator that will shorten this time to 2 to 3 minutes. During this time, the user sees a complete and accurate comparison of mortgages, with the best financial offer according to his particular life situation being displayed first, ”said Anthony McDane from Astro Finance , who recently celebrated the 10th anniversary on the market. “The calculator compares the offer of 14 banks and also shows the probability that the client will get a loan due to his creditworthiness, ” McDane added.
About Astro Finance
Astro Finance is a specialized brokerage firm whose main business is consulting in the field of mortgage loans and complete processing of credit and insurance products. Professional brokers provide their clients with mortgages, building savings loans and insurance free of charge. At present, the franchise network Astro Finance 110 has functional points of sale, which ensures easy availability and service of clients throughout the Czech Republic and Slovakia.
In 2011 Astro Finance became the largest mortgage broker in the Czech Republic and is a founding member of the Association of Mortgage Brokers. Astro Finance online calculator is the most accurate comparison of mortgages on the market. By selecting a specific product from the results of the comparison, the client orders the service of the mortgage broker Astro Finance for the mediation of the loan.