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A new player in the mortgage market: Bank introduced its mortgage offer

Since September 2019 Fine Bank has also offered mortgage loans to retail customers. She announced this in her press release, along with information that she had exceeded 80,000 clients. Fine Bank has only had a banking license since 2017. In addition to mortgages, it is preparing other financial products to make its offer as comprehensive as possible.

The bank itself states that the greatest advantages of the new financial product include the speed of administrative processing, interest rate and choice of insurance according to the client’s preferences.

According to the bank, the process of signing the loan application to its drawing can take only 14 days. Of course, it all depends on the speed of the documents delivered and the complexity of the particular case.

The lowest interest rate is 2.57% per year

The lowest interest rate is 2.57% per year.

This is a competitive offer compared to the average hypo index interest rate of 2.68% pa for July 2019. Given some of the charges discussed below, the APRC reaches 2.69% pa at the lowest interest rate.

What are the other parameters of a mortgage loan from Fine Bank?

  • maturity: up to 30 years
  • fixation: 3,5, 7 or 10 years
  • possibility to pay early for free at any time
  • possibility to make an extraordinary installment absolutely free at any time
  • providing a loan of up to 80% of the value of the mortgaged property
  • possibility of securing even more real estate at once

As with mortgages from other banking institutions, the longer the interest rate fixation period the candidate chooses, the higher his / her repayment will be.

How does a mortgage from Fine Bank work?

How does a mortgage from Good Credit Bank work?

Applicants can apply for a mortgage at any of the 34 branches throughout the Czech Republic. In Prague alone, the bank has branches in the center of Prague 1, in Prague 5 at Anděl and in Prague 8 at Florence. At the branch, the candidate receives a guaranteed offer valid for 30 days and at the same time he is provided with all necessary information about the necessary documents.

An indicative mortgage calculation from Fine Bank can also be obtained through an online calculator.

If the candidate decides for a mortgage from Bank Good Credit, he/she signs the loan application and the administrative process can start. Of course, Fine Bank properly assesses each application, evaluates the creditworthiness of the client, and examines its income. If a person is on notice or during the probationary period, it is likely that the mortgage application will be rejected.

The mortgage arrangement also involves various fees. While some other banks have waived similar payments, Fine Bank continues to demand an “entry” fee for processing credit and contractual documentation of USD 2,700. In addition, candidates must also count on reimbursement of costs associated with the preparation of real estate estimates (depending on the type of real estate and the form of estimates from USD 1,000 to 4,900).

Another fee is related to the actual drawing. The first drawing is offered by the Credit Bank free of charge. He already charges USD 500 for the second and further drawing.

The mortgage is repaid through a bank account with Fine Bank. Candidates do not have to worry about being an expensive account. On the contrary. It is a client-friendly account free of charge and with above-standard services free of charge – for example, a cash deposit at a branch office of up to USD 375,000 for free or withdrawal from ATMs throughout the Czech Republic and abroad free of charge. This bank account will not make the mortgage more expensive.

Other mortgage options from Fine Bank

Other mortgage options from Good Credit Bank

In addition to a regular home mortgage, Fine Bank also offers other options. We are talking about a mortgage for an investment that helps with the financing of property for subsequent lease.

The bank also offers an American mortgage. This is a non-purpose loan. The applicant does not have to prove what he/she intends to use the borrowed money for. The condition for obtaining an American mortgage is, among other things, securing the loan of own property. In addition to new mortgages, Fine Bank can also apply for refinancing.

Fine Bank and Its Market Position

Good Credit Bank and its Market Position

As already mentioned, Fine Bank acquired the banking license only at the beginning of January 2017. Its history, however, dates back to 1996, when it operated as the first credit union in Třebíč. In 2010, it was renamed to Fine Bank and entered the banking market seven years later.

Since it is a new bank, it cannot be assumed that it will immediately acquire a high market share.

The problem, however, is not products that are not able to compete with others, but rather the conservative nature of Czech consumers. Despite the fact that large banking institutions do not provide the most favorable conditions, they prefer them.

 

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