Recently, the credit market has undergone significant changes. This can be felt not only in the reduction of interest rates, but also, for example, in the revival of qualified consumer loans . This is a good initiative, but there are some interesting things about it. Let’s see that we know all about these loans!
About the terms
Here are the conditions that a credit must qualify for in order to qualify:
- Fixed installment for at least 3 years (min. 3 year interest period)
- The maximum disbursement fee is 0.75% of the loan amount, but not more than HUF 150,000
- Up to 30 years maturity
- Maximum 3.5% interest rate premium (over the reference rate level, not total)
- Living-; up to 1% of the final repayment charge, but free of charge for the saving of the apartment
Out of the many loans available on the market, more and more (4 out of 10) are rated consumer friendly, but is it really worth it? By default, we can say yes because the disbursement fee is favorable and there is a definite benefit to pre-disbursement; repayment terms. So what do you need to pay attention to?
Customers who are less well off may not be eligible. Currently, the property can be charged up to 80% of its value. In contrast, 60% of our income may not exceed our total repayments . This includes personal loans, other existing loans, and even 5% of the credit line. And then here it is worth pausing for a moment and counting.
The current official average salary is around $ 197,500. If we do not have any other repayments then we can spend 197.500 * 0.6 = 118.500 forints. This is equivalent to a 10-year $ 12 million loan where the property is worth at least $ 15 million. Of course, if you choose a longer maturity , the monthly repayment will decrease, which is good to know.
On the other hand, there are banks (for the time being anonymous, you will see it anyway during the calculations) that, to put it mildly, are not tailored to average earners. For example, one bank does not offer such a loan for less than $ 250,000 in net earnings, and some even have a minimum net income of $ 350,000. However, not everyone can meet it.
That’s why we choose for ourselves
There are two cases in which we can take advantage of consumer-friendly credit.
First, when interest rates are low, it may be worth fixing them over the long term. In the present case, this means that we can fix low interest rates for up to 5 years. What is interesting, however, is that there is no consumer-friendly loan that can be solved by the end of the term. It would be useful.
If you have, or are planning to set up, a securities account or a government-sponsored home savings business, this can be an important benefit. Since about 2016, there has always been a cost to this operation. Now, however, the cost should not exceed 1%. In fact, if you are paid from LTP , it is completely free.
Credit is not a short term solution
Neither standard home loan nor Qualified Consumer Credit is an easy and fast solution. On average, we usually take a home loan for 188 months, which is 15 years and 8 months, which we admit is not short. Therefore, at the beginning, we need to look at every opportunity to the best of our ability. A bad decision can cost us some serious money, which has its place elsewhere. That is why we would like to suggest that you seek the help of an independent expert, such as we are. And we’ll find the solution that’s right for you, both in flexibility and financially.