How do we choose a bank note that will not cause us sleepless nights that will have to be paid off in ten or twenty years? Which will not adversely affect our financial stability? This is a question for many as borrowing is the best solution in certain life situations. Such a situation is primarily the purchase of real estate.
The rent is financially zero
After all, buying a plasma TV – if you don’t have enough money in your pocket to buy it – can be postponed for a while, but sometimes buying a home can’t be put off for long. This is also reinforced by the fact that renting homes currently puts a very heavy financial burden on sub-tenants, not only in Hungary but throughout Europe.
In many cases, buying a home from the bank will inevitably be a multi-million dollar supplement. What kind of repayment is worth paying?
The safest, even if you have higher monthly installments
From the start, is a fixed rate loan . Currently, two banks, Good Finance and E-Money, offer interest rates fixed in Hungary for 20 years, which is a long-term, relatively low level of detail, and the same level throughout . Maturity depends on our individual temperament: are we willing to pay the bank after fifteen years or do we want to exit a loan deal as soon as possible? This latter variation costs a little more per month.
Another option is to choose the interest rate linked to the movement of the interbank borrowing rate. Short-term bids followed the change in the base rate much better, while fixed- rate loans did not move for the first time until last autumn ; the former can be much more tempting – being cheaper in the beginning.
Interest rates are artificially low
With mortgage rates now at record levels – as well as APRs for all costs – mortgages are most likely to increase for newly unsecured loans. If you choose the lower initial installment, it is worth choosing a fixed loan for at least five years .
Borrowers can be helped by a Home Savings Fund, which is worth combining with borrowing, or, if you fit in, CSOK can provide a solution.