The willingness of the Hungarian population to borrow increased significantly in the first 10 months of 2017. Banks issued 38% more home loan agreements than in the same period of 2016. This is a significant increase!
This 38% increase exceeded the HUF 500 million mark
Contracts totaled HUF 532.5 billion, a 38% increase over the previous year’s figure, as in 2016 only HUF 438 billion was spent on new home loan contracts. According to bank experts and statistics, at the beginning of December it is the most favorable loan, with a maturity of 10 million, 20 years and a fixed repayment period of more than one year. The APR for these mortgages, ie the APR, ranged from 3% to 4%.
If interest rates remain unchanged by the end of the term, we will repay $ 14 million instead of HUF 10 million. Initially, the described structure represents a monthly charge of HUF 57-58 thousand for the household.
Home loans with a fixed repayment period of 10 years
Which are also 10 million and 20 years old, are the most favorable and the cheapest, they can be used at 4-5% APR, and they have to be paid monthly from 63-88,000 HUF. .
According to a financial expert’s statement, however, he recommends fixed-rate loans, although our first impression is that floating-rate home loans are cheaper in the initial period, but interest rates may rise in the long run, up to 20 years, which in installments and may cause serious borrowing for borrowers.
Against this increase in interest rates
Let’s look at mortgage loan plans with a fixed installment for several years, to prevent a sharp rise in interest rates and predictable and predictable spending.
The real estate market can expect to see a significant increase in mortgage loan repayments over the next few years, as these mortgage loans will not experience a sudden surge in installments, but the borrower will feel predictably secure!
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