Steady income is the bank’s most important asset
As high and stable as possible – this income gives almost green light when taking a loan from a bank. It is worth emphasizing, however, that only the income documented by the employer in the issued certificate is taken into account for the assessment of creditworthiness. This means that even if you receive PLN 5,000 every month, but only PLN 1,750 (the lowest national pay since January 1, 2015) has been taxed and social security contributions have been deducted from it, and the rest, i.e. PLN 3,250 comes from a bonus, then the bank will only consider a fixed amount.
The form of employment matters with the loan
It is also important what you receive the salary for – the employment contract is the most rewarded. When you are employed on the basis of a civil law contract, i.e. a work contract or commission contract, then in the eyes of the bank you become a customer from the increased risk group. The critical approach results from the uncertain situation on the labor market and the fact that people on the so-called garbage trucks often change the form of employment and switch between different types of contracts, and thus lack the guarantee of having a job. They may lose their occupation at any time, and this will affect their financial position and prevent them from paying their debts.
Contract for an indefinite period
If you intend to finance the purchase of an apartment or building a house in the future with the help of a bank, you should start directing your employment path in such a way as to obtain an employment contract for an indefinite period or at least for a definite period, but with the assurance by the employer that he sees your future in company. In the event that you can only count on civil law contracts, it is worth taking care of their longest duration. Irregular extension of the contract or breaks between one and the other employment lasting more than 1-3 months are also not well received by the bank. Usually, lenders require employment for at least 6 or 12 months. It is important to have a current contract when applying for a loan.
In addition to seniority, the value added when applying for a loan with a work contract or commission contract will also be transferring remuneration to a bank account, rather than receiving it in your hand. Thanks to the account history, you can gain additional points that increase your credibility in the eyes of the lender.