A loan from a developer faster and cheaper, but not necessarily optimal

07 Feb

Developers usually work with a limited number of banks that offer faster loan granting, and often lower costs.

The developer can ensure the satisfaction of the buyer not only by offering the best apartment at the lowest possible price.

Many companies are also trying to cooperate with banks, which, with a small number of resources, can simplify credit procedures and reduce the cost of credit. It is worth remembering, however, that even the best offers presented by developers should be compared with others available on the market.

Simplified Procedures


When applying for a loan in the developer’s sales office, you can count on simplified procedures and, as a result, shorter time to obtain financing.

However, this applies only to selected companies. – Thanks to the well-established business relations that connect us with selected developers, their clients can count on a simple, convenient and extremely beneficial way of financing selected investments – explains Agata Chrzanowska, Director of the Mortgage Department at Fine Bank.

This is because the documents regarding selected investments are in banks. On the one hand, the buyer does not have to complete them anymore, and moreover, bank analysts do not have to re-analyze them.

The down payment should not be lost


In addition, when submitting a loan application through the developer, you can more often find provisions in the contract that allow you to recover the down payment or reservation fee when the bank refuses to finance. Even if there are no such entries, it will undoubtedly be easier for the developer to win them by looking for financing through it.

Lower cost of granting the loan

Lower cost of granting the loan

Another benefit for buyers highlighted by developers is the lower costs of granting a loan. It is especially about the lack of commissions and the lack of fees for the valuation of the property.

It should be emphasized that such promotions are very common on the market today, so it does not necessarily have to be an additional advantage of taking a loan in the developer’s sales office.

There are, however, interesting solutions dedicated by banks to specific developers. – In the case of our company, the PKO BP bank has created a unique grace period for capital and interest installments until the apartment is picked up – indicates Krzysztof Foder, Sales Manager of Bouygues Immobilier Polska.

Lower margins are rare

It seems that the most advantageous from the buyer’s point of view is a reduction in the credit margin. The commission is paid once, and the margin affects the interest rate on the loan throughout the entire debt settlement period. Good Finance, a representative of Breevast developer who cooperates with the Honest Bank, declares such benefits for buyers.

Similar solutions are most often available for buyers of housing lending in a bank, which also finances the developer. – In such cases, the margin reduction may reach 0.2 pp. relative to the standard offer – says Sean Cole, Home Broker advisor from Warsaw. It is also worth noting here that this is a kind of paradox because the bank lending to both the developer and the buyer is more exposed to risk.