Borrowing

A loan may be necessary for a bigger or a smaller dream

Whether buying your own home or a car, financing a long-needed renovation or purchasing a necessary home appliance, taking any larger financial obligation should be well thought-trough and within your family’s means.

Before taking a loan, always consider the following:

  • Do you want or need the thing you are taking a loan for?
  • How much can the monthly payment be to enable you a comfortable life?
  • What are your other financial obligations (loans, leases, sureties, invoices, dependant persons)?

Buying a home is one of the first big financial decisions for many people. Before making any long-term loan obligations, it is important to consider the following.

To get a home loan, you need a stable income allowing you to pay monthly loan payments as well as cover all other costs (utilities, food and transportation, entertainment, etc.).

  • Is your income sufficient to cover other costs besides your obligations?
  • Do you have self-financing or can you make use of additional collaterals (e.g. KredEx surety)?
  • Are you taking the loan alone or with a partner and how will you divide the obligations within your family?
  • Are you prepared for the worst-case scenario (one of the partners loses their job or their income decreases temporarily, you break up, etc.)?

Steps to a successful home purchase

  • Evaluate your solvency

  • Loans usually require self-financing or additional collaterals

  • Take time to choose a home

  • The bank will contact you for details

  • Sign a contract of purchase and sale at a notary

  • More on taking a home loan