By 2019, real estate prices in Hungary have reached extremely high levels, yet many people choose to buy a home because of the good market and interest environment. Most claimants take out a loan, and only then can they buy real estate. Of course, it is worth staying longer between the many good loans available because there may be significant differences between banks and packages!
10 million forints to get a real estate loan
According to bank data, on average, you need a minimum of 10 million forints to get a real estate loan. The most common home loan amount is HUF 10 million.
When looking at larger cities and county towns, the demand for credit is even higher, as real estate prices are significantly higher. There are times when families have to think about $ 15-20 million in loans.
Getting a loan is a decisive factor
Taking into account today’s real estate situation, according to central bank data, long-term loans with a minimum interest rate of at least 5 years are now chosen, and the appearance of fixed loans is not uncommon. Most of these increases can only be repaid within 15-20 years, with the maturity already provided. Getting a loan is a decisive factor in a family’s life, no matter what kind of construction we choose for ourselves!
“There may be hundreds of thousands or even millions of differences in the total repayment amount between the loans that appear to be the same,” borrowers cautioned.
The amount and maturity of two loans may be the same, but interest and other charges will be charged differently, which may cause significant differences in the final repayment of financial institutions.
- If the maturity is long, the bank will collect interest on the loan for decades, and then the principal will be repaid. The constructions are very different, so the difference at the end of the repayment can be millions of HUF.
Banking calculators, and especially our credit brokerage experts, can help you to bridge the gap and make the right choice.
Let’s keep the $ 10 million credit for an example.
We look for the best loan with a 20-year term with a 10-year interest rate. Here we have to experience one change in interest rates.
- One of the best conditional schemes is the Budapest Bank Equatorial Loan. At the end of the term, we have to repay $ 14,552,544 based on initial calculations. The benefit of Equatorial Loan is that you can include savings with your bank in your loan repayment and reduce your debt further. Saving $ 10,000 a month will give you an even better total refund.
- Erste Bank’s market-rate home loan is also possible, as the market interest rate will be over $ 500,000 and will be $ 15,170,640.
- Raiffeisen Bank’s home loan is HUF 15,463,200, while
- the K&H Certified Consumer Friendly Home Loan will cost you $ 15,506,280 at the end of the term.
All in all, the difference between the favorable home loans of the four big banks is at least HUF 1 million in the HUF 10 million loan facility.
Discounts are offered by banks with a variety of options, and attract customers with attractive terms. Those who keep their money in the bank account offered by the bank will receive a special discount. The interest may be lower if the total income of the family is higher.
The watershed is a $ 400,000 net income, so we’re getting a discount.
- In Budapest Bank’s offer, instead of HUF 14,552,544, our repayment will end with HUF 14,019,626, which is a price advantage of more than HUF 500,000!
- Raiffeisen Bank’s offer, with an income of HUF 400,000, is already HUF 15,138,000 instead of the full repayment of HUF 15,463,200.
- The opportunity of Erste Bank will be more favorable, for example, it will be HUF 15 170 640.
If you shorten the maturity, is it cheaper anyway?
Yes, we can reduce the repayment to 10 years if we can. This is ideal because the bank will not delay paying interest, so we will pay less overall.
Based on the example above, at BB, we change the maturity to 10 years, so our total repayment will be only $ 12,312,198, though the repayment installment will be $ 106,960 per month and only $ 66,950 for a 20-year maturity. Raiffeisen’s offer is barely missed.
Banks also offer promotions!
What banks offer periodically is also worth taking advantage of! It could be $ 100,000.
- or the bank charges the start up fees
- it also gives you a notary fee and disbursement costs as a gift, and these are just 2 of the many actions you can take.
Overall, therefore, anyone who is planning to buy a home or a home in the near future can still borrow in a very favorable interest rate environment.
Interest rates are going to rise soon, and the cycle of raising interest rates may come slowly! The financial situation of a family can be difficult, but easy mortgage loans can be chosen if you compare banks’ offerings carefully before making a decision!
All information on new family home improvement discount, GFIC 10 + 15, and home loans are available in one place upon request. We answer individual cases, explore the most important practical issues, and help adjust to the new GFIC.
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