Do you want to apply to financial institution for financing of your new housing? Then there is a possibility of mortgage or building savings loan. Let’s see what the specification of the second mentioned product is.


Building Savings Popular Product

Building savings is a very popular and widespread financial product. It can be used for valorization of your money which then can be withdrawn after a certain period of time together with a bonus and used for another purpose. Also it can be used to obtain another loan from the savings.



This product is favorable therefore beside mortgage it is the most often used way of purchasing new housing.


Regular and Bridge Loan

It is important to distinguish between these two products as each one of them has its specifics. Building savings loan can be drawn only after a certain time of the saving.


It has to be either after at least 2 years or when 40 % of target amount is reached.


This kind of loan has usually low interest rates interest rate ranges from 3 % to 6 %. As another advantage stands a fact, that a client repays the loan still under the same conditions. Interest rate does not change contrary to most of the mortgages.



Regular Loan Can Be Repaid Without Sanctioning

However, very often happens, that client’s funds from building savings are not sufficient the contracted target amount is too low.  In other cases client needs the funds earlier than it is possible according to the contract.


In these cases it is possible to use another implement bridge loan. In many aspects bridge loan is similar to a mortgage, in particular the interest rate.


However it brings also many positive aspects. Most importantly fee for the arrangement is lower than in case of mortgage.  Also it is not necessary to contract other services required by mortgage bank. In case the certain amount of funds is enough for you, you do not need a guarantor nor to guarantee with property.


Regular loan can be repaid untimely without any sanctions.To repay a bridge loan untimely, similar rules to a mortgage apply.