Is a loan in a foreign currency a safe and profitable solution in the light of what happened to the Swiss franc course? Who and in what currency can take a foreign currency loan? Check what experts advise!
Is it worth taking a loan in a foreign currency?
Foreign currency loan is settled in a foreign currency, most often they are – the euro, the Swiss franc or the US dollar. Foreign currency mortgages can be used to finance both personal mortgages and corporate mortgages. Only a few years ago, foreign currency loans were very popular. Currently, this process is stopped and credit policy is tightened. In the era of unstable exchange rates and after the experience of «franc», hardly anyone comes to credit in foreign currency. Banks are also less willing to grant loans in foreign currencies.
The law, which was adopted by parliament, introduced, among other things, the obligation to grant the borrower a loan in the currency in which he receives income. This is the aftermath of so-called franc loans, which until now are a problem for borrowers, banks that granted them and politicians. And what if you earn in both the euro and the Pulis currency? In this case, the amount of income decides. This assumption may be good, but unfortunately it is past due, because it will certainly not help the Frankivians, and may harm other potential borrowers, such as those working abroad.
Can anyone take a loan in a foreign currency?
The requirement of compliance of the loan currency with the currency of income made loans for people working in Ireland or another country besieged by Poles a narrow choice. Therefore, people working abroad find it more difficult to get a loan in Poland. The availability of loans for people who earn in a currency other than Pulis has been a hot topic in the credit industry for a long time.
Taking a loan in a foreign currency may be at risk. The advantage of a USD loan is that it does not involve a change in the exchange rate. Taking a loan in a foreign currency is associated with exchange rate risk, which may have consequences in changing the amount of the monthly installment.
Analyzing housing loan offers, it turns out that loans in foreign currencies are cheaper. An undoubted advantage of foreign currency loans is their interest rate, which is lower compared to loans in USD. The interest rate in USD can be even twice as high. Foreign currency loans have both advantages and disadvantages. It depends on the borrower’s situation and needs whether the loan will be beneficial or not.
Loans in francs
Currently, bank customers are trembling with fear of franc loans. Not surprisingly – the scandals that arose some time ago around such a solution effectively discouraged bank customers from taking loans in foreign currency. And although they concerned specifically loans in francs, it also affected loans sold in other currencies. Any money can get more expensive.
The market is very shaky and unfortunately it is not always possible to predict what the currency exchange rate will look like. However, it is worth remembering that with such a diametric change as the change in exchange rates was, you can always try to renegotiate the loan terms with the bank.
Financial advisors – why should you trust us?
First of all, we are oriented in all loan offers on the market. It does not matter whether they relate to liabilities in zlotys or in francs or dollars. Any credit you need – we’ll help you find it. We will advise you whether it is worth taking a loan in a foreign currency or whether it is better to stay with Pulis zlotys. Even the best offer can be a bad decision if the exchange rate at which you took it ceases to be favorable. And this, unfortunately, you can never be sure. We, as advisers, are obliged to inform you about the risk associated with a foreign currency loan. We perfectly understand your doubts and want you to make an informed decision. However, in addition to the fact that we present you with offers corresponding to your profile, you will also enjoy a number of other benefits from our cooperation.
The big advantage of using financial expert help is that this help is free for you. Therefore, nothing prevents you from making an appointment or calling and having a telephone conversation with one of our financial advisors. It will definitely be a good decision and will save both money and time. Especially if you live outside the country you will need a professional help. Arranging a power of attorney, choosing a loan offer, applying for a loan – it is all very complicated. Therefore, it is worth having someone to help and who to support during this difficult procedure. Financial advisors can be such someone.