Do you want to finally own your own property and want to be approved for a mortgage before you choose the right property? Then consider a total mortgage or a deferred mortgage.
Did you know that you can defer drawdown for up to one year on a total mortgage?
This will give you plenty of time to find the right property, and it will also put you in a more advantageous position when confronted with a seller or real estate agent. How is this possible?
You’ll have the funds at your disposal, so you’ll be able to sort the whole thing out quickly and get ahead of other applicants who have yet to apply for a mortgage. Sellers usually prefer to act as quickly as possible. This way you can even negotiate a lower purchase price and save a lot of money.
How does a total mortgage work?
With a total mortgage, which can also be called a mortgage without property, the bank will pre-approve you for a loan on the basis of proof of income and you have up to 1 year to find a suitable property. You can fix the interest rate for 3 years, just like a conventional mortgage.
Do you know that even in this case you can’t look forward to a 100% mortgage where the bank would lend you money for the full appraisal price of the property? Because the CNB stopped providing full mortgages in 2016.