Since September 2019 Instant Care 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.
Instant Care Bank 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.
Signing the loan application
According to the bank, the process from 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. This is a competitive offer compared to the average hypoindex 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 Instant Care Bank 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 Instant Care Bank 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 Instant Care Bank Bank can also be obtained through an online calculator.
If the candidate decides for a mortgage from Bank Instant Care Bank, he / she signs the loan application and the administrative process can start. Of course, Instant Care Bank 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, Instant Care 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 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 Instant Care Bank 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 Instant Care Bank Bank
In addition to a regular home mortgage, Instant Care Bank also offers other options. We are talking about a mortgage for an investment that helps with the financing of a 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, Instant Care Bank can also apply for refinancing.
Instant Care Bank Bank and its Market Position
As already mentioned, Instant Care 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 Instant Care 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. According to the available data, three “ traditional ” large banks hold most of the 60% mortgage market.
These three banking institutions together with Thrift Bank and Honest Bank then occupy more than three-quarters of the mortgage market. Other banks, especially the new ones, have little to do with the total.
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.