Take out a home loan to buy their dream home

Take out a home loan to buy their dream home

Many people take out a home loan to buy their dream home. Since the property still seems like a good investment, there are plenty of homes to buy for this purpose, which usually also requires credit. Before choosing a home loan, it’s a good idea to look closely at the banking market and select the most favorable bank and loan structure. You can inquire personally by going through the bank branches, or you can find our calculator on our site, where you can choose among the special loan offers of our banking partners. Some banks may even give you an interest discount, along with the already low mortgage rates, when you apply online. With a home loan, you can commit for up to 20-30 years, so be sure to think carefully about borrowing. If you do not feel alone, seek the help of a specialist.

Home mortgage rates are very low nowadays,

Home mortgage rates are very low nowadays,

Which encourages home buyers to borrow. Most home borrowers now prefer fixed rate loans because they provide security in the event of an interest rate increase. It is no accident that the BNM also supports fixed-rate loans. The big question is whether home loans will continue to be so popular in the future, as home loan regulations may change from January 2019. The essence of the change is to reduce risk and make borrowing safer. It is expected that the central bank will change the income-proportional repayment tranche within the housing loan regulations.

Defining the installment payment has been very important for a home loan so far. On the one hand, the bank determines the repayment amount and, on the other hand, the amount of the installment that you can fit into your monthly expenses. You need to consider your spending habits, or reconsider, to be sure you can pay off your loan repayment. It is a good idea to build up some reserves, which you can use to pay off your money even in the event of a loss of money, in which case you can provide a solution to the loan cover.

In the case of home loans, banks make the annuity repayment available, which means that the installment is the same until the end of the term. This way, you can calculate exactly this amount until your home loan expires. In the case of an annuity scheme, during the first period most of the repayment goes to interest, but after that the outstanding debt starts to decrease, thus the repayment of the principal increases.

Current income regulation

Current income regulation

At present, according to the regulation, in case of home loans with an income of 400 thousand HUF, the repayer can have a maximum of 50% of the income, while above 400 thousand HUF the repayer may have 60% of the income. In practice, banks are stricter than this, usually letting up to 35-40% of their income.

Presumed change

Presumed change

It is reported that the system will change from January 2019. Customers choosing an interest rate period of 5 years or less would be subject to stricter regulation, instead of 50%, the repayment could be 25-30% of the income. No official announcement has been received from the central bank. The purpose of the change is to steer people towards more predictable long-term home loans.

It is assumed that the central bank will lower the 50% limit to 25% for the 1-3 year interest rate and 35% for the 5 year interest rate. As a result, if the borrower stays at the same interest period, the maximum amount of credit that can be taken is reduced compared to the current situation. It is important to note that other fixed-rate loans can be chosen.