Investment

If you apply for a mortgage for the construction or reconstruction it is necessary to pay a higher attention in particular to the possibility and terms and conditions of loan drawdown about which you will be informed in detail by loan analysts at personal negotiations. However, a house exactly according to your wishes will be your reward.

Basic types of financing construction or reconstruction of real property

• mortgage concurrently for the purchase of land and construction
• mortgage only for the construction (or reconstruction) of real property

These types of mortgage loans may be combined with these optional parameters

• Mortgage Loan up to 70 - 85% of the collateral value
• Mortgage Loan up to 100% - intended for loans above 85% of the collateral value
• Mortgage Loan for Co-Operative Housing - form of classical mortgage to purchase a co-operative interest and individual reconstruction of a co-operative flat by its user. To secure the loan you may only use other real property in your own hands or held by a third person (e.g. parents)
• Mortgage Loan with No Evidence of Income - if you do not wish to tell us how much you earn, you do not have to do so! We will provide you with a mortgage loan up to 50% of the collateral value. You need neither the standard document showing your income nor the tax return
• Mortgage Loan for No Fee - you will not pay the respective fees for the conclusion and administration of the loan in advance. This mortgage is charged with a slightly higher interest but unlike the fees you are allowed to reduce the tax base by the interest expense
• Progressive Repayment - at the beginning of the period of repayment instalments are lower in comparison to those applied to classical annuity repayment, which you also may choose, but they are increased over time (for young people under the age of 36)
• Regressive Repayment - at the beginning of the period of repayment instalments are higher in comparison to those applied to classical annuity repayment, which you also may choose, but they are reduced over time (for people with actually high income)
• Portion of the Mortgage Loan for No Specified Purpose - along with the mortgage to invest in real property you may get a certain amount of facilities which you may use for anything for the same low interest rate

Particular types of mortgage loans may be provided with any of these services at your discretion

• Insurance - at a single meeting to conclude a mortgage agreement you may also establish insurance for the building, construction or flat (Mortgage insurance), capital life insurance or risk life insurance.
• Guarantee of the interest rate - having received answers to your questions about your mortgage and delivery of basic documents we will reserve the interest rate effective as of the date of the delivery of the application for a period of 30 days. If in the period of the guarantee the interest rate falls, we will provide you with the mortgage loan at the lower interest rate
• Real estate appraisal - the usual price of real property to secure the loan will be done by our expert or an expert who co-operates with the bank

Drawdown of the mortgage*

• gradually, by bank transfer
• based on invoices, even advance invoices, by remitting the respective amount to the supplier's account
• the loan has to be drawn down in full within 24 months following the date of loan approval

* Drawdown of a Mortgage Loan for Co-Operative Housing is different

Documents for the establishment of a mortgage for construction or reconstruction of real property

• Loan application form including information about the income and expenses of the household (loans, credit cards, amount of over draft, leasing, other payment, guarantor's obligations etc.)
• Confirmation of income from an employee or a tax return stamped by the Tax Authority of the loan applicant, or that of co-borrowers or guarantors. If you have other regular income you receive along with your earnings you may give evidence thus improving your solvency. There is no need to do so if you apply for the Mortgage with No Evidence of Income.
• Documents to real property - to which a lien should be established - original copy of actual statement from the Land Registry, original copy of the land registry map, ownership title to the real property showing the existing owner and information whether it is encumbered with another lien or easement, appraisal done by an expert who co-operates with the bank (if you do not decide to use the services of a bank expert)
• Building permit - or notice of construction work, bank expert opinion on small-value repairs
• Contract for Work - with the supplier of construction work including a breakdown of the construction work, list of work showing itemised budgets with a work schedule, list of work done by the client himself including pricing, project documentation
• Document of own funds invested - own funds are e.g. deposits, or loans within the construction savings system, loan from another bank or third person

The above-mentioned list is not comprehensive, it may differ case by case. A detailed list of attachments to the Draft agreement is available at Basic Documents

The first way to meeting

On the way to our office for the first (informational) meeting you should know:

• what purpose you need the mortgage for (the purchase of real property)
• the total amount of your investment (how much the purchase or reconstruction of a house/flat costs)
• how much you have and how much you want to borrow (the maximum amount of the mortgage is dependent on the value of real property to be pledged)
• what is your income (income of all co-applicants makes a total) and what are your regular expenses (i.e. insurance, construction savings, other loans, child-support, etc.)
• which real property will be subject to pledge (real property for which you apply the loan, real property that is your hands, real property of a third person, i.e. your parents)
• how much you would like to repay on a monthly basis in order not to burden you family budget too much and whether you plan to make any early instalments. Based on this information we recommend the term of loan (5 to 40 years) and fixing (fixed rate for 1,3, 10 or 15 years or P Plus rate bound to the 1y PRIBOR)

Based on this information we will recommend the type of loan, suitable services, period of loan maturity (5 to 40 years) and Float or fixed interest rate (1, 2, 3, 4, 5, 10, 15 or 20 years, or P Plus rate bound to the annual PRIBOR rate) and make an orientation calculation.