Tougher competition for safer home loans

Increasingly popular in the Hungarian market, guaranteeing predictable expenditure, ie 3-20 years fixed monthly expenses housing loans. They are safer than their so-called floating rate counterparts, as there is no change in the repayment period over a given period, that is, over a period of 3 to 20 years, even if market interest rates may change in the coming years or decades.

 

Movement in the market

Movement in the market

Irene Tuncao , an expert at SureLife Bank , said in recent months, several banks have changed the terms of so-called consumer – friendly home loans that provide fixed repayment tranches for 3-20 years and the rating system established by the central bank. “There was a bank that, due to demand, increased interest rates within specified conditions, but to a minimal extent. There are also market players who have lowered interest rates in order to offer a more attractive offer to affected home loan applicants. The changes suggest that, as previously expected, competition for clients in the fixed-term mortgage loan market for 3-20 years has increased, ”the expert added.

How much are the cheapest?

home loan

According to SureLife Bank , one of the 10 million forints mortgages with a 20-year term and a fixed repayment term of at least 5 years had a total mortgage rate of less than 5 percent at the end of March, which is just over 60 thousand forints means repayment. One of the cheapest housing loans with a fixed installment for 20 years can be applied for at a monthly cost of less than 70 thousand HUF. Banks provide , among other things, a discount if the borrower undertakes to transfer his / her income to that bank and his / her net salary exceeds 250 thousand HUF . You can also get a discount if you are launching a direct debit order or other banking products such as savings .

Irene Tuncao pointed out that due to the increasing demand in the market of fixed mortgage loans in question, it is advisable for the claimants to exercise caution , ie to look at the bank offers before borrowing, as they can change rapidly due to the intensifying banking competition. However, with a more favorable home loan, you can save millions on your entire repayment amount.

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