No matter how tight the words or the facts, it is quite clear that there are periods when we are better off borrowing than usual.
We are currently in a period like this, but there are signs that we are slowly entering a new period. We have gathered facts that show that it is time to activate ourselves when it comes to buying real estate.
Interest rates are still very low
We have described many times that there are indeed fortunate people who have now made a home purchase and intend to finance it by credit. One of the bases for the interest rate on the loan is the central bank base rate, which for some time was 0.9%. Just for comparison, in January 2013, this rate was 5.50% in January 2013.
Can we imagine how much higher interest rates on loans were due to this? For a while, the central bank base rate is not expected to rise to that level, but it is nevertheless worthwhile to borrow at a lower interest rate with a higher interest period.
In the opinion of the National Bank of Hungary, the population should work harder towards slightly higher but more stable loans. And what can the supervisory body do in this case? Even though it sounds nice to people, we admit it has minimal effectiveness.
A good example of this is the Swiss franc loan misunderstanding. Even though everyone was talking about exchange rate risk, the dog wasn’t really interested, because everyone just saw how much cheaper monthly repayments were.
Then, when the exchange rate suddenly escaped, they burned themselves in abundance. Even if this is not the case, it is expected to become more expensive, which is why the MNB will regulate the maximum amount of loans that can be taken from October 1 for loans with a shorter interest period.
Beneficial Home Savings
Also, we were concerned earlier that we may never have had the support we needed to get our own home as we do now. It is difficult to list what kind of real estate related state support is currently available in Hungary, but we will try. ? One of our best options for building a homeownership is a home savings fund, for which you can get 30%, up to $ 720,000 in one contract plus 10 years from the state. Also a similar type of contract, but quite different from NOK , an English-style housing savings community. In addition, over a 15-year period, we can raise $ 4.5 million in government funds.
Other state aids
As we have just read, the state is contributing quite a bit to raising money for our own homes. But this is not the end of state subsidies. Let’s start right away with the Family Home Creation Benefit , which is a one-time, non-refundable (!!!) “help” from the state. It depends on how many children we have (or how much we take), the condition of the property (new or old), and the size of the property. You can win at least another 600 thousand forints, but not more than 10 million forints.
In addition, the Qualified Consumer Friendly Home Loan should also be mentioned. Here, the state does not provide extra money in the classic sense, but protects us from extra costs and factors of uncertainty. Not all loans will qualify for this rating because they must meet strict conditions. These include accelerated credit assessments, long interest rates, maximizing interest rates, or free early repayment from home savings plans.